Signs the inflated real estate market is cooling

Chinese investors should be banned from buying residential property in America

I see it firsthand here in Cali

I think it’s unfair that they are able to move markers like this

I just signed a buyer for my house in GA a couple days ago.

Read about the SoCal situation this morning and I’m very glad I’m selling.

I see it more as a correction, especially in SoCal. They were too high in pricing to begin with.

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Home sales in SoCal

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Considering how many businesses are leaving Cali and how real estate prices in many areas have skyrocketed I'm not sure I would use this as a measuring stick for the entire country.

While new home sales are down (at least from the latest numbers I can find) it's still up for the year and continuing to trend upward.

LINK

A lot of people just getting started in my industry do their time in the Bay Area, enjoy the amenities there, then move out after a few years.

We used to joke about how the folks that are based there shouldn’t bother making close friends as they’ll all be somewhere else in a couple of years.

I don’t see the rental market there changing very much. In fact I think they need more housing supply.

Not sure what the issue is in SoCal.

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I just heard the other day that wealthy folks that wear table cloths on their head and have more money than they know what to do with are also buying up real estate

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Investors in the ME and China are buying a lot of properties in San Francisco, New York, DC, Toronto, Seattle, LA, Vancouver, etc.

It’s a relatively stable place to keep your money.

It also drives up housing prices for millenials.

If I recall correctly, ultra progressive New Zealand just banned foreign purchase of residential property.

The really unique thing that most people completely lose track of is the previous "mortgage meltdown." The ancillary market correction in home prices wasn't really felt on Main Street. In major metropolitan areas like Miami, SoCal, etc you saw bigtime corrections.

But in Louisiana-and the majority of the nation-there wasn't widespread, massive, large-scale evaporation of homeowner equity. Historically a single-family residence will appreciate 3-5% a year during an average economic environment.

Sometimes a little less if things are bad. Sometimes a little more if things are good. The wild volatility only occurs in bubble markets which are major metro areas. The issue is that millions of people live in these markets and think that this is reality across the nation. When in reality the media that caters to these major markets is really only fueling a localized narrative that doesn't apply to the nation as a whole.

Sure I can remember seeing oceanfront condos that were unfinished on the inside being advertised for $75K apiece in Destin a decade or so ago. But again, that's localized, anecdotal evidence restricted to a specific market.

When we're talking about SoCal, there were doublewides on tiny pieces of land selling for multi-six-figure amounts almost 15 years ago. I'm not prepared to say we are about to have another real estate correction anytime soon...and even if we do, I doubt it is as deep and damaging as big-city/major-media-market media coverage will suggest.

I wish it would correct itself some. I bought my house in 1999 (under $200K) and I'm now paying taxes on north of $400K, no way it's worth that.

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I see it firsthand here in Cali

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Me too. I'm going to sell next year and get the heck out of here. Home prices are ridiculous.