Chinese pushing up housing prices in North America? Exaggerated! (2)

In the U.S.

According to people who are familiar with the operation of the U.S. real estate market, a large number of Chinese people buying house in some areas of the United States does play a role in pushing up housing prices, but saying that Chinese are pushing up the overall price in the United States is "exaggerated."

Barry R. Su, President of Chinese Biz News in the United States, has met a large number of Chinese people who come to the United States to buy real estate. He told reporters a large number of Chinese people live in Los Angeles, San Francisco and New York. Houses in Chinese community in these cities are mostly purchased by Chinese, including those coming from the Chinese mainland and local Chinese in the United States. Recently, Chinese buyers outnumbered sellers, causing rise in house prices in certain communities, and this is a normal phenomenon. But to say that the Chinese are pushing up the overall housing price of the United States is an exaggeration. "The proportion of Chinese people in the United States is so small, how could they push up prices in the United States?"

Experienced real estate agent from Southern California Su Jiamin told reporters that U.S. home prices have began to rise, but there is still a wide gap from the highest point in history. The laws and regulations of real estate transaction in the United States are comprehensive and investment risk is relatively low. These factors are boosting the return of buyers' investment, which naturally attracted a lot of investors, including the Chinese.

Su pointed out that there are actually two pushing hands in the U.S. real estate prices, rather than those Chinese people who buy house as in the rumors. The first promoter is that the U.S. real estate industry is into a new round of rising cycle. U.S. real estate reached peak in the first half of 2006, and then went and fell. After the outbreak of the financial crisis in 2008, the housing prices slumped and fell to the bottom in 2009. In the next two years it touched the bottom again and began to rise, now it has entered a more sustained upward cycle.

The second promoter is the quantitative easing policy implemented by the U.S. Federal Reserve. The low interest rate environment and a lot of liquidity into the market resulted in more than 20 percent increase in housing prices of Southern California from August last year to February this year.