5 ms·

So good right? Easier to buy a house now, less competition. House owners should be happy enough to have the real estate goes straight up those many years. Ther

So good right? Easier to buy a house now, less competition. House owners should be happy enough to have the real estate goes straight up those many years. There is an end to it, they need to accept that. In short, happy after all.

kshacker 7y ago
Be happy but be aware of the cascading impacts. Foreign buyers affected the price in valley and elsewhere in big markets, and while you may get cheaper house don't end up causing another subprime. All it needs is one domino to move. I would prefer lower prices but am not sure it will be happy for all.
- H8crilA 7y ago
  Not to mention that money (as in USD or any other fiat) is mostly backed up with houses on banks' balance sheets. Perhaps it'll push down the ridiculous prices on US equities too. Whoever has much of their investing time left should cheer for a good stock market crash - to buy stocks cheaply.
- pixl97 7y ago
  Of course it cant be 'happy for all', the rent seeking wealth extraction industry will not be happy about lowering prices at all.
whalesalad 7y ago
Very good, especially for those of us in Southern California where foreigners have been purchasing a ton of property with cash. It’s tough to compete.
- JMTQp8lwXL 7y ago
  Zoning laws have more of an impact than foreign purchases. California has been under-building for decades. It would take a monumental political change to play catch-up.
  - linkregister 7y ago
    True, a market that allowed for up-zoned property building would absorb the foreign investment. Hell, it would help bring money into the community. Exporting flipped condos to foreign buyers is wealth transfer to that locality, if the market can be permitted to expand in response to increased demand. This does not mean "bulldozing Central Park," it means "allowing the owner of a laundromat to build a 3-story condominium." The worst-case scenario in that case is "overbuilding," a deceptive term that means that housing becomes affordable again to those who need it, e.g. minorities previously subjected to redlining.
    - C1sc0cat 7y ago
      Or you get a lot of poorly built property, its all fun an games until you get a building collapse.
      - pixl97 7y ago
        Poorly built housing has nothing to do with building demand, but instead piss poor inspection and permitting.
      - linkregister 7y ago
        Is this a problem that you've observed in the United States? Do you think that housing is fundamentally different from other goods in a market? Do we have similar problems with food, clothing, cars, and other goods?
- CalRobert 7y ago
  Your neighbours have been confiscating property for the sake of parking welfare and density restrictions (i.e. forming a housing cartel). I think that's more likely to be your problem.
- asdff 7y ago
  I believe the international buying in southern california has been a drop in the bucket compared to places like Vancouver. Housing costs in CA have surged due to prop 13 limiting turnover and NIMBYs refusing to allow supply to be built in their neighborhoods. Housing demand follows job growth, so as long as CA is doing well and hiring a lot of people, housing costs will be surging if sufficient supply isn't built.

kshacker 7y ago

Be happy but be aware of the cascading impacts. Foreign buyers affected the price in valley and elsewhere in big markets, and while you may get cheaper house don't end up causing another subprime. All it needs is one domino to move. I would prefer lower prices but am not sure it will be happy for all.

H8crilA 7y ago
Not to mention that money (as in USD or any other fiat) is mostly backed up with houses on banks' balance sheets. Perhaps it'll push down the ridiculous prices on US equities too. Whoever has much of their investing time left should cheer for a good stock market crash - to buy stocks cheaply.
pixl97 7y ago
Of course it cant be 'happy for all', the rent seeking wealth extraction industry will not be happy about lowering prices at all.

whalesalad 7y ago

Very good, especially for those of us in Southern California where foreigners have been purchasing a ton of property with cash. It’s tough to compete.

JMTQp8lwXL 7y ago
Zoning laws have more of an impact than foreign purchases. California has been under-building for decades. It would take a monumental political change to play catch-up.
- linkregister 7y ago
  True, a market that allowed for up-zoned property building would absorb the foreign investment. Hell, it would help bring money into the community. Exporting flipped condos to foreign buyers is wealth transfer to that locality, if the market can be permitted to expand in response to increased demand. This does not mean "bulldozing Central Park," it means "allowing the owner of a laundromat to build a 3-story condominium." The worst-case scenario in that case is "overbuilding," a deceptive term that means that housing becomes affordable again to those who need it, e.g. minorities previously subjected to redlining.
  - C1sc0cat 7y ago
    Or you get a lot of poorly built property, its all fun an games until you get a building collapse.
    - pixl97 7y ago
      Poorly built housing has nothing to do with building demand, but instead piss poor inspection and permitting.
    - linkregister 7y ago
      Is this a problem that you've observed in the United States? Do you think that housing is fundamentally different from other goods in a market? Do we have similar problems with food, clothing, cars, and other goods?
CalRobert 7y ago
Your neighbours have been confiscating property for the sake of parking welfare and density restrictions (i.e. forming a housing cartel). I think that's more likely to be your problem.
asdff 7y ago
I believe the international buying in southern california has been a drop in the bucket compared to places like Vancouver. Housing costs in CA have surged due to prop 13 limiting turnover and NIMBYs refusing to allow supply to be built in their neighborhoods. Housing demand follows job growth, so as long as CA is doing well and hiring a lot of people, housing costs will be surging if sufficient supply isn't built.