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Falling Chinese Currency and The US Housing Market

By Karen Fiddler, Broker/Owner

Real Estate Agent with Karen Parsons-Fiddler, Broker 949-510-2395 BRE# 01494165

August 12, 2015 01:42 AM

For the second day, the Chinese currency has fallen in value. Yesterday the Central Bank of China devalued the yuan in an effort to create more favorable conditions for Chinese products on the world market.

As a result, the Chinese citizen will have less buying power outside of China....about 4.8% less in the global economy. Chinese home buyers have become a major factor in our Orange County, CA housing market and with less buying power, this might have an effect on our real estate market.

A few years ago, our Chinese Nationals mainly purchased in specific areas which professed to have superior local schools. Now we see Chinese buyers and agents viewing almost all our home listings. South Orange County has many wonderful schools, and these buyers are buying in every city now. These buyers pay cash and while they do negotiate, they are happy to pay a reasonable market value.

It's not a secret that the Chinese Stock Market has been declining over the past month and now the purposeful devaluation of currency. Will this affect our home values? Will the Chinese stop buying?

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Broker Patty Da Silva Da Silva

Green Realty Properties® - 954-667-7253 - Cooper City, FL

Top Listing Broker

Great analysis, Karen. Thanks for sharing, have a wonderful day!

Aug 12, 2015 02:34 AM

Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

I never really thought of how this may directly affect housing markets in our country. If Chinese nationals are making up a measurable portion of Orange County, CA buyers, then it may affect values over time.

Aug 12, 2015 06:47 AM

Ed Silva, 203-206-0754

Mapleridge Realty, CT 203-206-0754 - Waterbury, CT

Central CT Real Estate Broker Serving all equally

The Chinese have been creating a false economy for years to gain entry into the world market. You cannot survive when you have a house of cards

Aug 12, 2015 12:46 PM

Alan Kirkpatrick

Austin Texas Homes - Round Rock, TX

Alan in Austin

Karen Fiddler, Broker/Owner

Very intersting. I recently have had the privilege of working with some people from Greece. They have saved their entire lives and are trying to find a place to invest for their future.

Aug 12, 2015 01:53 PM

David Shamansky

US Mortgages - David Shamansky - Highlands Ranch, CO

Creative, Aggressive & 560 FICO - OK, Colorado Mtg

I doubt it but I do see how it will affect some making that decision or possibly have them buying a little lesser priced homes

Aug 12, 2015 02:27 PM

Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA

Orange County & Lake Arrowhead, CA (949)510-2395

If the Chinese buyers stop buying in Irvine, as an example....prices will fall dramatically. The neighborhood is transforming and if that buyer pool dries up, the homes would need to compete with other cities of comparable size.

Aug 13, 2015 12:27 AM

Anna "Banana" Kruchten

HomeSmart Real Estate - Phoenix, AZ

602-380-4886

Karen we've been watching and listening carefully as it will have an effect on many markets, including ours. There are many sellers/ agents that will no longer accept prove of funds from Chinese banks.

Aug 13, 2015 09:37 AM

Falling Chinese Currency and The US Housing Market

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Karen Fiddler, Broker/Owner

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