Real estate markets, especially in "desirable" areas such as New York, Los Angeles, Vancouver, BC, the San Francisco Bay, and Miami
have been driven up lately by foreign buyers, flush with cash, at a time when the United States economy was in flux, a bit
I predicted all this back in 2007 -- the rushing in of foreign capital into American housing markets . . . and, with it, ultimately a return to prices within those markets that are not sustainable (long term)
high end goods typically stay pretty flush -- because for the real quality there is always an anxious and willing pool of buyers
and the highest end people typically are bullet-proof, to a point
but the tier one or two steps down -- they are the movers and shakers and it is often from this "second level of success" that we see changes in value driven most quickly, both up AND DOWN
in short (and forgive the pun for those who follow the stock market), $30 million dollar apartments in New York would not BE $30,000,000
without a whole lot of Asian or Middle Eastern buyers, flush with cash, anxiously scooping up their piece of the American pie
when their worlds flatten (which is starting already) then they will be forced to withdraw
at which point the real estate "bubble" (#2) pops and it all goes to shit one more time
with the added wrinkle that people were duped once pretty badly in 2007; they are a lot less likely to buy into the hype for Round 2
meaning . . . let the FUN BEGIN
have been driven up lately by foreign buyers, flush with cash, at a time when the United States economy was in flux, a bit
I predicted all this back in 2007 -- the rushing in of foreign capital into American housing markets . . . and, with it, ultimately a return to prices within those markets that are not sustainable (long term)
high end goods typically stay pretty flush -- because for the real quality there is always an anxious and willing pool of buyers
and the highest end people typically are bullet-proof, to a point
but the tier one or two steps down -- they are the movers and shakers and it is often from this "second level of success" that we see changes in value driven most quickly, both up AND DOWN
in short (and forgive the pun for those who follow the stock market), $30 million dollar apartments in New York would not BE $30,000,000
without a whole lot of Asian or Middle Eastern buyers, flush with cash, anxiously scooping up their piece of the American pie
when their worlds flatten (which is starting already) then they will be forced to withdraw
at which point the real estate "bubble" (#2) pops and it all goes to shit one more time
with the added wrinkle that people were duped once pretty badly in 2007; they are a lot less likely to buy into the hype for Round 2
meaning . . . let the FUN BEGIN
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