The Chinese Are Cutting Back on SF Bay Area Homes Purchases! What's to blame? I wanna blame Trump's "Let's-Start-a-Trade-War" + Strong Dollar + Difficult to get money out of China, etc. Canadians, people from India, U.K. and Mexican buyers (maybe Trump's WALL stopped 'em) also cut back purchasing US housing.
Market peak. Investors try to capitalize profits, put out more inventory. More inventory=lower prices. Lower prices put the riskiest borrowers underwater. Underwater borrowers=more foreclosures. More foreclosures=lower prices and more inventory etc. etc.
There's one big mansion above my neighborhood that just went into foreclosure and was sold at auction. It's the second time for this home. It was in foreclosure at least once before at the first real estate crash. Santa Cruz for the past year has been dotted with more foreclosures.
https://www.cnbc.com/2019/07/17/foreign-purchases-of-american-homes-plunge-36percent-as-chinese-buyers-flee.html