No Bubble in Sight Even as Chinese Buyers Help Fuel Bay Area Real Estate Prices
No Bubble In Sight
All-cash purchases and international investors are helping drive Bay Area real estate prices to stratospheric levels, but current conditions don’t indicate a looming bubble, Pacific Union CEO Mark A. McLaughlin said in a recently televised interview.
“This is not a bubble,” McLaughlin told San Francisco TV station KPIX in a June 1 interview. “I think that the dynamics of the San Francisco Bay Area are very, very solid.” McLaughlin pointed to the Bay Area’s “fantastic job market” as a major factor driving price appreciation.
Although liquidity created by the current tech-industry boom — particularly in San Francisco and Silicon Valley – is certainly pushing Bay Area home prices higher, international buyers and a pronounced lack of inventory are also propelling our local real estate markets.
Chinese Buyers
McLaughlin told KPIX that Chinese buyers have been especially active in the Bay Area of late, citing educational opportunities and lifestyle change as two reasons the demographic targets the region. He estimates that about half of Chinese buyers are currently living in the Bay Area and noted that their investments will likely continue to push prices upward.
Learn more at https://compasscaliforniablog.com/no-bubble-in-sight