
With the bulk of new home sales in Irvine, California, selling to Chinese nationals, declining sales there is an indicator of overall Chinese capital flows. I don't believe we will see another real estate crash caused by American lenders. Since they mastered the art of can-kicking to keep supply off the MLS, they managed to reflate the old housing bubble. It's very likely they would employ this same technique to prevent any future house price collapse caused by loan delinquency. However, despite the huge influence lenders have on the market, they don't control all the supply. If there is any issue that has real potential to drive real estate prices down, it’s the possibility of foreign buyers, particularly the Chinese,…[READ MORE]