China’s Stock Market Drop

February 16, 2016

CHINA’S FALLING STOCK MARKET

GOOD OR BAD FOR U.S. HOUSING MARKET?

You have probably heard that the stock market of the world’s second-largest economy, CHINA, continues to fall month after month. The value has fallen an estimated 11.5%, causing a panic among global financial markets, and losing nearly $10 trillion since a June 3 peak.

Now there are some that say it greatly (negatively) affects the US housing market, and some that think it will have a reverse affect.

How much property has China acquired nationwide?

The Chinese don’t just have their toes dipped in American Real Estate; they have their entire bodies submerged in it. Chinese investment in American real estate markets exceeded $10 billion in 2014 and they poured $28.6 billion into properties in the past year, more than double the investment of Canada, making China the biggest foreign buyers of US housing.

What does all of this mean for you as property owner in California?

One of two things can likely happen. China being our number one housing investor, we may see a decline in the amount of home purchases from China due to their uncertain volatile markets, thus taking a hit. Or, it can have the reverse affect, and be a positive outcome. The Chinese may be looking to move their money in foreign investments as a safe place to hold their assets. This gives an opportunity to diversify their investments, which could mean a growth in our US housing market for 2016.

What are your thoughts?

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Chinese market

China Stock Drop

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