US Housing Market Eyes Chinese Real Estate Investors

The US Housing market has been closely watching the Chinese stock market. This past summer the Chines stock market lost high of its value and those losses caused a ripple in the Chinese economy that could triggered some serious implications across the Pacific Ocean in the US economy. US real estate analyst are concerned that the volume of US real estate purchases made by the Chinese could significantly decrease and dampen the US housing recovery. It’s estimated that Chinese nationals account for nearly $100 billion in US real estate sales each year which equates to about 16% of real estate sales.

Many speculate that Chinese nationals could liquidate their US holdings (to include real estate properties) to compensate and replace money lost in their stock markets. Although some real estate market experts argue that the US housing market could use the inventory, a decreased number of international buyers during the off-season to buy real estate could further delay a full housing recovery. US concerns also lie in that Chinese nationals may have borrowed against their homes in China to invest in the Shangai stock market. If so, their losses could trigger a sub-prime crisis for the Chinese real estate market causing yet more economic tremors for international economies.

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