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1   Eman   2020 Feb 10, 8:05pm  

“Harsh has been covering financial markets on CCN since 2019. He has also written for other reputed publications such as The Motley Fool, TheStreet, and Seeking Alpha, and gets regularly featured on Yahoo! Finance. Harsh is based out of Indore, India.” - This guy is clueless. Nuff said.
2   HeadSet   2020 Feb 10, 8:38pm  

Chinese investor pull out of US housing market? Still need to get the cash out of China, and may even need a place to get away from the virus,
3   BayArea   2020 Feb 10, 9:15pm  

I remember reading that 7% of Bay Area housing is purchased with money coming abroad. Wonder what China makes up of that?
4   SunnyvaleCA   2020 Feb 10, 9:21pm  

Even if Chinese stop speculating on Bay Area housing and house prices drop in half, houses will still be extremely expensive / overpriced.
5   AD   2020 Feb 10, 9:37pm  

I know commodities like copper and oil are going down.

http://www.financetwitter.com/2020/02/get-ready-for-us-dollar-40-oil-price-opec-plan-to-cut-an-extra-500000-barrels-fails-to-stop-coronavirus-panic.html

But I see where some may claim the coronavirus would create a global economic panic, but I don't think Chinese foreigners own more than 5% of US residential real estate. Maybe it would have less impact on real estate, and more on Chinese investors pulling their money out of the international stock markets.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

"In 2014, China supplanted Canada as the source of the largest share of foreign buyers of U.S. residential real estate, according to data from the National Association of Realtors. In 2018 dollars, Chinese buyers accounted for roughly 25% of total foreign investment in U.S. residential real estate. marketwatch.com May 16, 2019"
6   SunnyvaleCA   2020 Feb 10, 10:32pm  

AD says
but I don't think Chinese foreigners own more than 5% of US residential real estate
It might not be as simple as that. I know people from China living and working (legally) here in silicon valley that pool money from friends and family in China to buy places here. That's a type of "foreign buyers" that wouldn't really count in your 5% statistics. But, that would dry up if China clamps down harder on money transfers. It would also slow housing speculation is people in China were more concerned about the short-term problems of corona virus; but that, at least, would resume when the pandemic subsides.
7   Heraclitusstudent   2020 Feb 10, 10:51pm  

When the SHTF, cash is king.
8   Ceffer   2020 Feb 11, 1:15am  

A girl told me once that when Chinese pull out, you can't tell.

Article is ridiculous speculation, perfect for CNN. Or, a crude attempt to sway the markets on rumor for an investment sortie. Also perfect for CNN.
9   AD   2020 Feb 11, 11:33am  

SunnyvaleCA says
AD says
but I don't think Chinese foreigners own more than 5% of US residential real estate
It might not be as simple as that. I know people from China living and working (legally) here in silicon valley that pool money from friends and family in China to buy places here. That's a type of "foreign buyers" that wouldn't really count in your 5% statistics. But, that would dry up if China clamps down harder on money transfers. It would also slow housing speculation is people in China were more concerned about the short-term problems of corona virus; but that, at least, would resume when the pandemic subsides.


Good point, but yes the 5% statistic is based on 100% foreign investment, and not "mixed" or foreign-domestic investment.

But I suspect if there is any panic the Chinese foreign investors would first withdraw from their stocks and bonds portfolios and deposit the proceeds into checking and savings accounts.

Housing naturally does not offer the liquidity for a panic / quick sale.
10   SunnyvaleCA   2020 Feb 11, 5:50pm  

AD says
Housing naturally does not offer the liquidity for a panic / quick sale.
The lure of having a property is that it's seen as much more stable, thus reducing the "panic" part. Also, it seems that some Chinese, apparently, don't understand this whole "property tax" thing... you mean you buy a property and then pay $20k/year "rent" to the county tax assessor's office — might as well live in an apartment!
11   Patrick   2020 Feb 11, 7:33pm  

SunnyvaleCA says
Even if Chinese stop speculating on Bay Area housing and house prices drop in half, houses will still be extremely expensive / overpriced.


Lol, so true!

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