A Breitbart report noted that purchases from wealthy Chinese buyers are pushing California’s real estate prices up, which could lead to a second housing bubble.
“The result is pricing many California residents out of the real estate market, and creating a second housing bubble that threatens to end just as badly as the 2006-2008 housing crash, from which the state's economy is only beginning to recover,” the report stated.
The report revealed that valuations in Santa Monica, for instance, have soared to $1,000 per square foot from just $600, according to the report. Rents in San Francisco meanwhile are also surging.
Breitbart sees the activity among Chinese buyers as a means for them to hedge against losses from China’s slowed economic growth.
A Forbes.com report also noted that New York City apartment prices are up due to Chinese and Russian buyers. Chinese investors, however, have recently overtaken Russia’s super-rich after activities from the latter simmered down. Russia’s moneyed elites started piling on NYC real estate during the recent Ukraine crisis, according to Voice of America.
Buyers from China, Canada, the United Kingdom, Mexico and India are gobbling up US real estate properties, accounting for 54 percent of transactions that translated into over $92.2 billion, according to National Association of Realtor’s (NAR) 2014 Profile of International Home Buying Activity.
Canadian property buyers topped the list of foreign investors, accounting for 19 percent of real estate purchases. Chinese investors, however, led the purchases in terms of dollar volume, with $22 billion under their belt.
Chinese buyers account for 16 percent of the purchases, up by four percent from 2013.
Mexico ranked third in property transactions, ringing up nine percent of the sales. India and the United Kingdom accounted for five percent of the sales.
NAR stated that foreign buyer’s purchases are concentrated in Florida, California, Arizona and Texas.
As U.S. real estate becomes more attractive to foreign buyers, one disruptive technology that agents and brokers can utilize to tap this market while keeping marketing costs down is RealBiz Media Group, Inc.’s (OTCQB: RBIZ) Microvideo App.
RealBiz Media’s video-centric Microvideo App platform allows agents to create their own listings, virtual tours, and agent pages, eliminating the need for them to buy leads from multiple listing sites (MLS) and middlemen. The service sets agents back $10 a month.
According to RealBiz Media CEO Bill Kerby, the company brought the platform to the market to help “technology-starved” agents without the “marketing machine to generate leads” to generate new businesses themselves.
Kerby noted that agents do not like seeking leads from MLSs because “they are the ones who put leads into the system” in the first place.
RealBiz Media’s Microvideo App platform and Nestbuilder Agent have drawn over 15,350 agents so far, according to an International Business Times report. 24,000 videos are published daily across RealBiz Media’s video marketing platforms.