patrick.net

some california homes are overpriced - i think this is a fair statement

do you have any evidence to support the Chinese/Indian supporting the market claim, or are you just guessing this is the case?

My evidence is anecdotal- most of the department, in fact even the whole division, where I work is in that demographic, and have made a Fortress Purchase in recent years.

A smaller group are not in that demographic, including a handful of locals with local roots like me, and, ironically, have not made a Fortress Purchase in recent years.

I am an Indian American and do have a substantial saving..But I think I am one of the rare Indians who won't drink the kool-aid. I despise realtors from the pit of my heart ... Overall I agree with OP that a lot of well educated ( most of them are) ones fall into the RE trap due to social pressures....can you point to the areas where Indians / Chinese in SO CA are making these purchase? I am thinking Cerritos, La Canada, la Crescenta, Simi Valley , Stevensons Ranch ...

Teddybearneil says

I believe Chinese and Indians are holding up the bubble. They are the ones who have saved up and have enough to put a down payment AND also have good credit!

I doubt our credit agency services have that much history on someone who just jumped off a banana boat and equally doubt banks/lenders are willing to extend a loan with limited work history. If they are not even US citizens they could move back and defualt on the loan. AH! Risks of lending..

Sybrib says

and have made a Fortress Purchase in recent years.

Will not need an Iceberg to sink that ship...
I guess they will all go down together.

Fortress .. what a concept.. where was this fortress
before the bubble years ?

thomas.wong1986 says

I doubt our credit agency services have that much history on someone who just jumped off a banana boat and equally doubt banks/lenders are willing to extend a loan with limited work history. If they are not even US citizens they could move back and defualt on the loan. AH! Risks of lending..

Any anecdotal evidence that suggests these 'just off the boat' Indians/Chinese have done that? To my knowledge, some have been in the 'strategic default' mode, but not in the 'sub-prime' category. Rarely do you see that demographic foreclosed on, except, through 'strategic default'.

Southern California has the worst prices generally. Way overpriced. I think it will fall apart eventually & when it does - it will fall into the ground - digging it's own grave itself.

I have not seen anyone of Chinese or Indian descent in our neighborhood. A lot of stuff just ends up foreclosed, that's all.

Banks are holding most of the homes now and not willing to flood the market with the millions of foreclosures.