SAN FRANCISCO (KPIX) — There is an increase in buyer activity across the Bay Area suggesting that IPO expectations are already showing up in the real estate market. The chief economist at Compass Selma Hepp says this is particularly the case in San Francisco and San Mateo counties.

“I think buyers are trying to come in ahead of the expected IPO influx of buyers so there’s a lot of anticipation,” Hepp said.

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The latest data from Compass shows buyer demand is picking up despite a small drop in median home price. Contracts in April were up 9 percent year-over-year across the Bay Area — the highest increase since summer 2017.

Hepp says this suggests strong home-buying months ahead.

“Today’s market is vibrant,” said real estate agent Ana Dierkhising. “The inventory is very constrained so buyers are motivated.”

Dierkhising and Val Steele are co-listing agents for one of the newest and sleekest homes in San Francisco’s Pacific Heights neighborhood.

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2833 Vallejo features four bedrooms, 6 1/2 baths and 4-car parking across 6,050 square feet. There are also expansive views of San Francisco landmarks from multiple levels and high-tech amenities. The asking price: $19 million.

Dierkhising and Steele say they are seeing more traffic at their open houses and private showings. The luxury market seems to be benefiting the most but the upward trend is not dramatic.

“There’s that six-month lockup period, there’s different classes of stock, so it’s going to, I think, trickle in over the next year, year and a half, two years,” said Steele. “There’s not that one magic day that all this cash is going to appear on the market.”

Sales of homes in San Francisco priced above $3 million have surged again after significant declines in the previous six months, according to Compass.

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“There’s a long pipeline of IPOs coming on so it’s going to impact one way or another.”