San Diego Housing Market News and Analysis
California Real Estate An International Store Of Value
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Submitted by phaster on July 25, 2022 - 12:22pm
FYI given the global market marketplace, investors should realize CA real estate is being bid up because it is seen as a "safe" store of value by international buyers BUT OTOH it is contributing to inflated prices of housing for people living in the USA
Chinese Investors Buy $6.1 Billion Worth Of US Homes In Past 12 Months
For the first time in three years, activity from overseas real estate buyers has increased. During a time when the housing market is under incredible scrutiny and seeing astonishing prices, investors from China are gobbling up available homes.
The National Association of Realtors (NAR) reported that international buyers combined to purchase $59 billion worth of U.S. residential properties between April 2021 and March 2022, up 8.5% from the same period one year earlier. Chinese Investors accounted for $6.1 billion dollars in home purchases, totaling over 10% of the market.
...The homes being secured by foreign investors aren’t cheap, with average purchase prices hovering near $600,000 per home and median purchase prices approaching $370,000 — the highest ever recorded by NAR. Chinese investors had the highest average purchase price at just over $1 million per home.
Location tells a story as well. Chinese investors purchased nearly a third (31%) of their homes in California.
China Pushes to Quell Protests Over Billion-Dollar Banking Scandal
Chinese authorities are moving quickly to thwart more public discontent after hundreds of bank depositors held a rare protest last week outside government offices in Zhengzhou, capital of Henan province.
The central bank regulator, the China Banking and Insurance Regulatory Commission (CBIRC), said that it would "handle the risks associated with five rural banks," four in Henan and one in Anhui.
...Authorities froze the accounts pending an investigation into how the banks came to be without the cash needed to meet withdrawal requests.
The scandal at the rural banks has drawn national attention as Beijing is struggling to maintain economic growth in the face of President Xi Jinping's commitment to a zero-COVID policy that has prompted widespread lockdowns and a resulting economic slowdown.
...Xie Tian, a professor at the Aiken School of Business at the University of South Carolina, told VOA Mandarin, "I think that the Henan Rural Bank is not a fortuitous incident, it is a nationwide problem. [Similar problems in other banks] in other provinces have not yet begun to break out, and the Chinese Communist Party's supplement [reserves] may not be fully sufficient. If they can't solve this, more problems will rise."
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