I spoke with a dear friend in the SF Bay area. He's a real estate agent on the peninsula south of San Francisco. He indicated that the housing market there is so hot, it's hotter than it was in 2006-7, and rivals that of 1998-9, when houses on the peninsula and in Silicon Valley were sold within hours of listing. This seems to me to be unsustainable, except he said there's lots of demand from Chinese immigrants paying in cash, as well as other Asian immigrants putting down 60-70 percent of the purchase price and financing the rest. I don't think this will have a pleasant ending.

Leo Jia writes: 

It looks the Chinese buying will continue for sometime. They are crazy about housing. The decades or centuries of housing shortage must have altered their genes. And now when some have some money, they will chase at any price what they feel missing mentally. America (particularly the west coast, traditionally with more Chinese) clearly is a top choice for many.





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1 Comment so far

  1. Greg Rehmke on March 14, 2013 12:53 am

    I visited Menlo Park, just north of Palo Alto a month ago. I used to work in Menlo Park in the 1980s and enjoyed visiting the same streets and University Drive, where my office was, and parking in the same parking lots. In fact, very little has changed. No new buildings or homes, no larger homes and no higher homes. A city–village really–frozen in time. From 1983 to 2013, in nearly the center to the high-tech universe, virtually no new housing or offices. In reply to a Facebook post on this, a friend replied that her mother lived in Menlo Park, and would be quite unhappy if a new two- or three-story building nearby were to block her sunlight.


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