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Is this What Hit Housing in San Francisco, Manhattan, and Miami? Suddenly, Foreign Investors Pull Back
by Wolf Richter July 7, 2016
[font color="blue"]Chinese investors buy fewer homes in the US.[/font]
Oh no, we thought when we read the report from the National Association of Realtors. Not now! Not when theres a huge unstoppable condo glut building up in the teetering housing markets of San Francisco, Manhattan, and Miami, when sales and prices are already dropping. Foreign investors are now needed more than ever to absorb this new high-end inventory and bail out these markets.
Thats what everyone has been praying for. The last thing we need is for Chinese investors to stay away from San Francisco and Manhattan; and Canadian, European, and Latin American investors to stay away from Miami.
But thats what theyre starting to do for the first time since the Financial Crisis.
The data for the just released NAR report is based on a survey of 5,960 realtors that covered transactions with international clients during the 12-month period between April 2015 and March 2016.
.....(snip).....
But San Francisco, Miami, and Manhattan are steeped in an epic condo glut. New high-rise developments are hitting the market, and those still in the pipeline will hit the market this year and over the next few years. Developments where construction has already begun can no longer be stopped without huge losses. They were planned in good times. And now the tide has turned.
Its already happening. Condo prices in Manhattan, as new high-end developments flood the market, have tumbled 14% in three months. .............(more)
http://wolfstreet.com/2016/07/07/foreign-investors-chinese-pull-back-from-housing-in-san-francisco-manhattan-miami/
Ohioblue22
(1,430 posts)Warpy
(111,222 posts)It's high ticket, glossy, glitzy, and palatial, fit for the top executive class and above who are looking for endlessly appreciating property that someday might provide a comfortably bolt hole. There's no way it can be retrofitted for ordinary families. If the ultra wealthy stop buying, much of it will have to be torn down.
Little affordable housing is being built because builders are dazzled by the high profit margins on the glitzy towers.
TDale313
(7,820 posts)They need to come down. Even rent is getting out of reach unless you have a six figure income. Time for the housing bubble to burst a bit. It's still a wonderful area and housing will always be high cause people wanna be here, but this? This is ridiculous.
still_one
(92,115 posts)will drop low enough to what would be considered affordable.
That is why a good number are commuting into the Bay Area from Stockton, Tracy, etc. where housing is more affordable, but the commute is no fun, and mass transit has been stagnant for decades.
tonyt53
(5,737 posts)Those people buying have lots of money, but they aren't suckers.
still_one
(92,115 posts)prices were affected adversely by foreign investment as suggested, there is very little chance that the prices would drop low enough to what would be considered affordable
kimbutgar
(21,104 posts)And not renting them out. Or buying buildings and throwing out long time renters.