Real estate prices are extremely responsive to very small changes in demand. Chinese buyers compose the majority of international buyers in most investment mar

Real estate prices are extremely responsive to very small changes in demand. Chinese buyers compose the majority of international buyers in most investment markets. I see the ownership makeup of several 200+ unit HOAs where we are allowed to get insight into LLC ownership. If Chinese buyers quit buying my estimate is that San Francisco prices would fall by 10%. There are just not many domestic buyers at current prices. If the most recent wave of Chinese investors liquidated properties acquired since 2011, the market falls another 10%; although that's unlikely because they tend to have a buy and hold forever mentality. What surprises me the most about the current market is the fact that rents have been able to rise so much without hitting a harder affordability ceiling.