Hat tip to AH for sending in this article on the Chinese money laundering:
Here is the follow-up on zerohedge too:
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My take on it:
The gist of the story is that the Chinese banks have been allowing citizens to secretly funnel more than the $50,000 allowable to America and other countries. Much of the money has been used to purchase high-end real estate in places like Vancouver, San Francisco, Irvine, and here in Carmel Valley.
People want to know what will happen if the flow of big-money would stop – doesn’t it mean that high-end real estate markets would tank?
We’ve already seen and heard that as many as 70% of the buyers in Carmel Valley are Asian, and a good portion of them from China.
If they stopped buying, the Carmel Valley market wouldn’t tank, instead it would turn into the same sluggish market like we have in Rancho Santa Fe. Sellers are affluent, and wait until somebody comes along.
RSF Detached Homes
Active listings: 240
Avg LP/sf: $706/sf
Avg DOM: 131
June Sales: 31
Avg SP/sf: $523/sf
Avg DOM: 96
The Ranch has a 7.7-month supply of homes for sale, and a 35% gap between the ask/sell average pricing.
When you talk to agents who work these types of markets, they just accept it as fact that it takes months to sell a house. It’s an environment that is likely to permeate through any market where sellers are flush, and don’t have to move. They will just wait, Chinese or not.
If it was someplace I could afford I probably would not want to move there LOL.
Just kidding, But I think Groucho did say it best.
I am just glad I/we don’t feel compelled to live in CV,
The RSF average DOM (days on market) should be at least twice what’s shown due to listings being ‘re-freshed’ and others be relisted with new agents. My guess is 9-12 months.