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> For the fourth year in a row, buyers from China ranked first among foreign nationals purchasing property in the United States, according to a survey by the Na
by intopieces 10y ago
> For the fourth year in a row, buyers from China ranked first among foreign nationals purchasing property in the United States, according to a survey by the National Association of Realtors (NAR). U.S. home sales to Chinese nationals totaled $27.3 billion — exceeding the total dollar sales figure of the next four countries in the rankings combined, the survey showed.
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In San Francisco Bay-area locations such as Palo Alto and Woodside, home prices have risen by double digits in the past three years, while the number of buyers from China has nearly doubled since 2012, says Penelope Huang, a broker with Re/Max Distinctive Properties. The increased demand is making the area one of the toughest for younger buyers, she says.
https://www.washingtonpost.com/realestate/wealthy-chinese-buyers-are-a-growing-force-in-us-real-estate-markets/2016/10/13/15ab3cba-7441-11e6-8149-b8d05321db62_story.html https://www.washingtonpost.com/realestate/wealthy-chinese-bu...
- phil21 10y agoBeing the largest in a small pool doesn't mean a lot. What % of the total home sales are to foreign residents in the bay area, and what % of those are Chinese? I think you'll find it's very likely less than 5% - not nearly enough (imo) to move a market enough for it to "crash" if they were to pull out.
- intopieces 10y ago"McLaughlin estimates that buyers from China account for 15 to 20 percent of the San Francisco real estate market." https://www.washingtonpost.com/realestate/wealthy-chinese-buyers-are-a-growing-force-in-us-real-estate-markets/2016/10/13/15ab3cba-7441-11e6-8149-b8d05321db62_story.html https://www.washingtonpost.com/realestate/wealthy-chinese-bu...
- bduerst 10y agoThey're also bidding 10-20% cash over the asking prices of homes, because they still save money on paying 45% income tax. This is affecting the entire market because housing is a fixed supply. Buyers who are getting outbid on one price point move to outbid people at a lower price point, and so on.
- msie 10y agoOr they don't. It's not like someone who is outbid on a mansion _automatically_ decides to buy a townhouse.
- bduerst 10y agoThey don't _automatically_ do anything because the usual home buyer bids 7-8 times before getting a purchase. A mansion goes to large home, large home goes to home, home goes to townhome, townhome to condo, condo to keeps renting. This is fixed supply, with foreign entrants, which means new home buyers that invested into planning, saving, and starting the process aren't going to just keep blowing money on renting because their first home is a townhome.
- msie 10y agoCitation needed.
- bduerst 10y agohttp://www.forbes.com/sites/erincarlyle/2016/04/13/bidding-wars-for-homes-have-become-the-new-normal-in-many-u-s-cities/#31c2e706688a http://www.forbes.com/sites/erincarlyle/2016/04/13/bidding-w... >Buyers who become frustrated tend to shift from looking in popular urban core neighborhoods to suburbs where competition is less intense, or from single-family homes to condos