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"McLaughlin estimates that buyers from China account for 15 to 20 percent of the San Francisco real estate market." https://www.washingtonpost.com/realestate/w

• bduerst 10y ago
  They'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 ago
    Or they don't. It's not like someone who is outbid on a mansion _automatically_ decides to buy a townhouse.
    • bduerst 10y ago
      They 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 ago
        Citation needed.
        • bduerst 10y ago
          http://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