Canada, economy, hype, prices, USA

Chinese buyers move to the USA

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If you’re wondering why we haven’t heard as much about wealthy chinese buyers lately as prices drift down in Vancouver, maybe it’s because they’re moving to the USA.

“California has always been popular with Asian buyers,” he told beyondbrics. “But whereas before it was mainly buyers from Taiwan, Hong Kong and Japan, now we are seeing more mainland buyers visiting.”

Reasons for purchases vary, say those who have dealt with overseas Chinese buyers. Some are buying because they want to emigrate or they have children who will go to school in the US. More and more Chinese millionaires are looking to settle in the US or at least secure residency rights.

 And why would they be buying in the US as opposed to Canada?
Others buy because the numbers add up: the renminbi is relatively strong against the US dollar and property prices are cheap compared to Australia or Canada.
But it’s not supposed to work like that!  Wealthy people aren’t supposed to look for good deals..
Are they?
Read the full article on ft.com
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Crikey
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When the hubris of Vancouver RE speculator/suckers finally catches up with them, in the upcoming inevitable RE fall, how will they react?

Here is a very special glimpse at the scene that will be playing out in many heavily-mortgaged households across Greater Vancouver…

Note: you may want to substitute the words “National Association of Realtors” with “Global TV” or your RE-pumping clown of choice.
Also substitute the terms “Lehman and AIG” with “RIM”.

http://www.youtube.com/watch?v=bNmcf4Y3lGM

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6 years 5 months ago
registered
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FTA:

“According to a report published by the National Association of Realtors this week, buyers from China and Hong Kong made up the second largest group of foreign buyers of homes in the US in the 12 months to March – behind only Canadians – accounting for $9bn of sales.”

This tiny nation is ahead of the global industrial behemoth a hundred times larger? That’s really disturbing, especially when the likely source of that play money is considered.

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6 years 5 months ago
VHB
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Most of the areas I monitor still haven’t come back to the inventory level seen on June 30th. Biggest exception is VanEast SFH. At 677, 16 higher than June 30th peak.

VE is right in that million dollar sweetspot that will be most affected by that aspect of the new CMHC rules. Do you think that’s why VE inventory is jumping ahead?

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6 years 5 months ago
joe_blown_away_by_high_housing_costs
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Very hard hitting article on Robson Street just appeared in the Vancouver Sun. Bramham is practically trash talking Robson in the Van Sun…

“There’s nowhere near the population base or wealth in this city to support many high-end retailers. Besides, Vancouverites’ fashion choices tend more toward Lululemon and Mountain Equipment Co-op.

So, our fashion street is anchored by Winners, the discount fashion retailer, and a blank-walled building that’s been derisively likened to a toilet bowl — which is soon to be vacated by the retreating Sears.

The city has done its preeminent shopping street no favours.”

http://www.vancouversun.com/life/fashion-beauty/Bramham+Robson+Street+sure+Champs+Elysses/6914127/story.html

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6 years 5 months ago
Anonymous
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“Chinese buyers move to the USA”

Who knows maybe lots of those ‘Chinese’ buyers in the USA are really Canadians.

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6 years 5 months ago
jesse
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@VHB: “Do you think that’s why VE inventory is jumping ahead?”

VE has seen a big run-up in the past year that has acted to reduce the differential between westside prices; more likely in my view it’s that people would like to sell at higher prices.

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6 years 5 months ago
Vote Down The Facts
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@fixie guy: “This tiny nation is ahead of the global industrial behemoth a hundred times larger”

Probably because the impact of Asian buyers was overstated from the start?

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6 years 5 months ago
jesse
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“California has always been popular with Asian buyers”

Parts of the US haven’t seen prices off significantly from their peaks, and these areas do include parts that have a high immigrant Asian population. The difference in the US is that overall prices have dropped, even if certain pockets have not, whereas Vancouver’s prices have remained elevated.

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6 years 5 months ago
French_In_Exile
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@Vote Down The Facts: It is simply because Canada was historically a better investment option since the 1990s … and until now (Canada didn’t have a real RE crash in 2007, remember?).

Now that the RE market is bottoming out in the USA AND topping up in Canada, the smart money is heading down south.

The times, they are a-changing 🙂

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6 years 5 months ago
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@fixie guy:

This tiny nation is ahead of the global industrial behemoth a hundred times larger? That’s really disturbing, especially when the likely source of that play money is considered.

I bet the same can be said for RE in Vancouver.

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6 years 5 months ago
Bag it and tag it
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@VHB: “Do you think that’s why VE inventory is jumping ahead”
Van East has done well over the past year. This coincided with the drop-off of Van West. I think the Van East surge can be attributed to prospective Van West buyers that were essentially priced-out-forever (in their mind anyway) and were forced to move East. It seems this wave of final fools has now been depleted and now it’s Van East’s turn for a ‘buyer’s vacation’.

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6 years 5 months ago
Patiently Waiting
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Bear candy in bear country

http://vancouver.en.craigslist.ca/pml/reb/3132552969.html

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6 years 5 months ago
Patiently Waiting
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I find this hard to believe.

http://vancouver.en.craigslist.ca/van/reb/3131506845.html

What is Rennie up to?

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6 years 5 months ago
French_In_Exile
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@Patiently Waiting: I have to say, that house is really great! I would lowball it at 750000$ (they lowered it by 200k. I’m sure they can take another hit!lol).

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6 years 5 months ago
Best place on meth
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@Patiently Waiting:

10 acres with a nice large house in Maple Ridge for $975K actually sounds very reasonable compared to the asinine prices in Vancouver and its immediate surroundings.

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6 years 5 months ago
jesse
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@Patiently Waiting: “I find this hard to believe.”

The first tip should be an almost complete lack of information. If this were a good buy, disclosure would over this like white on rice.

Instructive because, if sales are in for a rough patch, I predict there will be a push towards much more detail in the listings to attract interest, when those buying are looking to make money the old fashioned way.

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6 years 5 months ago
Patiently Waiting
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A few days ago, I cycled through Coquitlam, following the existing Transmountain pipeline. Most of the older houses near the pipeline have extra big lots with buildings less close to the pipeline. However, newer infill houses are going to be ripped down if the pipeline twinning is on the existing route. A new house is being constructed on top of the pipeline 😮 at Cottonwood and Colinet. Across the street from it, this house-for-sale could be on top of the pipeline http://www.ecorealtyinc.ca/listing?id=259540252 A few blocks away on Cottonwood, another brand new house with the pipeline running by the sidewalk a few feet in front of it. Then it enters medium-high density low-income rental house, which may be an obstacle. Many buildings fairly close to the pipeline and a potential traffic nightmare around North Road and Evergreen Line construction. Unfortunately, the… Read more »
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6 years 5 months ago
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@Patiently Waiting: Anyone dedicated enough to find out which Rennie listing has a 50% reduction?

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6 years 5 months ago
Yalie
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@gokou3:

50% off original asking price is meaningless. I have a paperclip to sell you. Original price one thousand dollars. Now 50% off!

That people fall for this shit is very telling. Why do otherwise intelligent people become suddenly lobotomized when it comes to real estate?

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6 years 5 months ago
specialfx3000
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@Patiently Waiting:

Hmm, posting is from this Realtor.

Go to Pinocchio’s page and he has no current listings.
http://www.rennierealty.com/sa/pinocusati/listings

Perhaps he is dumping his own gem?

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6 years 5 months ago
registered
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8 jesse Says: “Parts of the US haven’t seen prices off significantly from their peaks, and these areas do include parts that have a high immigrant Asian population.”

The Case Shiller HPI for Los Angeles, San Francisco and San Diego on the other hand all shed better than half the gains from their mid-Nineties trough. Which areas were you thinking as examples?

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6 years 5 months ago
oneangryslav2
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Spot the Intergenerational Specuvestor, Part I: I had some drinks with a friend last night who told me about a friend (let’s call him Burnaby Joe) of his who has contributed to the craziness here in Vancouver. Burnaby Joe is in his mid-50s, born and raised on the east side of Italian parentage. He finished high school and has worked in the building trades his whole life. He owns his own home (probably mortgage-free) in Burnaby. Anyway, my friend told me about Burnaby Joe’s pretentious and spoiled daughters–18 and 19 years old–who have almost as many shoes as Imelda Marcos in their “clothes room” at home. Each of these girls is as of recently the proud owner of a new condo in the North Burnaby area. How many of these cases are around? How did Burnaby Joe finance the purchase… Read more »
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6 years 5 months ago
jesse
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@fixie guy: “Which areas were you thinking as examples?”

Arcadia, Irvine, Cupertino, San Francisco City, off the top of my head. As I stated, the drops in major US cities on the west coast have not been homogeneous. This should not be a surprise; unemployment rates of higher income brackets are significantly lower than lower tiers. Vancouver, OTOH, is high across the region, a marked and important difference.

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6 years 5 months ago
patriotz
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@gokou3:
“Anyone dedicated enough to find out which Rennie listing has a 50% reduction?”

I think the title is in error. If you read the body it says “Priced at $500k below assessed value” which means something quite different.

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6 years 5 months ago
patriotz
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@Anonymous:
“Who knows maybe lots of those ‘Chinese’ buyers in the USA are really Canadians.”

Don’t think so. The numbers and charts in the article clearly refer to the country of residence of buyers, not ethnicity.

Could a lot of the Canadian (#1 by number) buyers be ethnic Chinese? Sure.

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