When the Chinese economy made a slump of the stock market, the US stock market is not the only country that is affected by all these commotion, but the rest of the world as well including real estate.
However, the real estate sector in the Bay Area seems to have also been hit by the downfall of the economy, and it is either a good thing or bad for most home buyers.
Ralph Mclaughlin, chief economist for Trulia, said that, "the Chinese economy has seen quite sharp drops in the stock market as well as general economic activity. Now in California, many agents and home buyers have felt the effect of this Chinese economic crisis." He believes at what he sees that there is a decrease in the number of home seeker Chinese on Trulia in San Francisco.
Since in real estate, one can also make use of their stock portfolios as part of their house's down payment. Nowadays in Bay area, many Chinese buyers are now having second thoughts if they would do it or not.
One of the interview with mortgage broker John Holm green said that they use to have a lot of clients coming from the technology sector who have been planning to make cash of their stock options so that it can serve as a down payment for their home, but now, their number are not so much.
He said that the clients are just doing either one of the two things: to wait things out, or go look for relatives who can help them with financing, and if they are creative enough, they might come up with a down payment.
As per statistic, 6-10% of Chinese home buyers are in San Francisco, as the market from China is down up to 50% so far this year. However, if you talk to a realtor, the perspective that will be presented to you is a lot different, because according to Anian Pettit Tuney of Grubb Realtors said, "I believe people feel that real estate is a very solid investment that people cannot take away from."
As for Trulia, even though there is a slowdown of house buying in the Bay Area, the prices for each house is still high and many are still unable to afford it.