Tag Archives: Asia housing market

Black Monday’ Rattles Housing Market

Chinese home buyers, in particular, may be more cautious in entering the U.S. housing market following Monday’s massive stock market sell-off that sent stocks tumbling, according to housing analysts. The sell-off began in Beijing on Monday and sent shares plunging by record amounts across the globe. Chinese media dubbed it “Black Monday” as markets fell nearly 8.5 percent there.

Read moreChinese Dominate as Buyers of US Real Estate

In the U.S., the Dow Jones industrial average plunged more than 1,000 points just minutes after the opening bell alone on Monday. The Dow made up some ground later in the afternoon but still closed nearly 600 points in the red.

John Burns, CEO and owner of John Burns Real Estate Consulting, explained in a blog post that Chinese home buying will likely be under a cloud of uncertainty.

“While the recent Chinese stock market correction has caused a decline in sales (one of my builder clients has noticed a sharp pullback, another just told me about a home sale cancelation specifically due to the buyer’s stock market losses, and one publicly traded home builder even mentioned the pullback on their earnings call), our research has convinced us of tremendous Chinese demand to buy US real estate for their families and as investments,” Burns says.

However, Burns says there is some doubt over whether the Chinese will continue their big U.S. buying spree. He questions the number of people who will still be able to afford to purchase a home in the U.S. after the stock market correction and currency devaluation.

Chinese home buyers have been strong in the U.S. market lately. Sixteen percent of international home buyers come from China, according to the National Association of REALTORS®. The Chinese spent $29 billion last year on U.S. real estate, surpassing Canada as the top spenders.

Source: “Betting on Chinese Home Buyers in the U.S.,” LinkedIn Blog (Aug. 24, 2015); “Stock Market Slide Continues Across Asia,” The Washington Post (Aug. 24, 2015); and “Black Monday Hits Housing, Mortgage Finance Worse Than Dow, Nasdaq,”

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China’s Real Estate Boom About To Crash?

China’s property prices are falling, with potentially far-reaching effects world-wide. And should investors think twice for buying into Chinese firms? Hong Kong’s outgoing securities regulator thinks so. WSJ’s Peter Stein and Andrew LaVallee discuss.

BEIJING — New-home prices plummeted by more than 20 percent year-on-year in the Chinese capital in May, and analysts said other cities will follow the trend in the second half of this year.

In Beijing, the average price of a newly constructed unit dropped to 23,467 yuan (US$3,400) a square meter, a month-on-month decrease of 7.19 percent, and 21.06 percent lower than the same period last year, according to SouFun.com, the largest property website in China.

Prices fell partly because more developers offered discounts to counter the cooling effect of the government’s tightening property policies.

For all your real estate needs, call or email:

John J. O’Dell Realtor®
Real estate broker
O’Dell Realty
(530) 263-1091
jodell@nevadacounty.com