Yeah. It is Wednesday July 9 business markets in New York are open -- today's big number a lot of -- there 22. Billion dollars that. Is how much residential -- it was purchased in this country by... See More
Yeah. It is Wednesday July 9 business markets in New York are open -- today's big number a lot of -- there 22. Billion dollars that. Is how much residential -- it was purchased in this country by Chinese buyers that's over a one year period ending in March. All according to a survey by the national association of real -- Everyone I'm damn clip where in New -- to -- break on the numbers and tell us what it means for the US economy Rick human finance. Joining us this morning. -- Rick let me ask you about this -- that the wide shot on this in the survey on the foreign purchases of US residential real estate jumped back 35%. Just -- one year. I want to bring up this three year chart a foreign investment here in the United States and an ask you what does the -- behind this. US real -- has been a good deal for foreign buyers it's kind of that simple a lot of things and in favor of foreigners coming here by real state. We of course we know about the housing bust -- prices plummeted. There -- a lot of people who have the money you pay cash for homes such as these. And -- look at the opportunity to buy some property United States as a terrific opportunity. You know it's a great place to live compared to most other parts of the world and when prices fall you know -- with money have said -- -- I'm getting -- on this. Well as we said Chinese buyers are leading the way and all of us are -- in -- for nearly a quarter. Of that 92 billion dollars. That just alone. Is a 20% year to year increase what are the factors and for bringing in the Chinese investment that's the specifically mean an artist and the -- other countries are interested in American -- they. But why specifically China. -- addition to US real estate being a good deal I think you've got a lot of people who have money in China. Who want to diversify if you will. You they could buy property in China of course but a lot of people feel there is a property bubble -- huge property bubble in China right now it's just waiting to burst. I mean you know apartment buildings just sitting empty and things like that. So they want to get some of that money someplace else. And what better place to put into place is recovering from a bus were you wary of you might actually be making a great investment if you're willing to hold on -- that property for a little while. So again a lot of people in China are making money a lot of marks -- -- is there with trying to figure out what to do with money. Nothing wrong with having a toehold in United States they might even be able to have their kids go to school over here learn English. And escape what is looking like a property bubble in China. Is it a blanket interest or there are some states are some regions that are particular hot spots. Well as no surprise here they're going after the hot markets coastal markets. For Chinese and Asian buyers in their interest in Los Angeles San Francisco maybe. -- -- Arizona. New York is attracts buyers from all over the world up property prices in Manhattan have been skyrocketing lately because of foreign demand. And a lot of foreigners Europeans in -- Americans in particular likes Florida. So you can tell they're not just like closing their eyes and according to some place on the US map that probably picking places. Where they've done their research they know these are these are good housing market just start with. And then -- wouldn't mind spending some time in these places what -- -- -- -- got a little bit deeper into this because the Chinese may be spending the most money. But in fact it is our neighbors to the north Canadians. Right are actually buying the most houses right what why is that right and that they interest -- this. -- between higher dollar number going to the Chinese in the more the higher number of homes going to Canadians tells you. Chinese people are buying more expensive homes that -- you lot of wealthy people whereas Canadians. May be buying US -- as weekend homes vacation homes it. Probably it's a lot of people who live close to the border. They can easily get there you know we have a we have a lot of trade with Canada very easily of that back -- back and forth across the border. So there's nothing I don't think than usual about that but I also think even Canadian -- -- -- -- I didn't have a housing bust the way we did. So they never had that big drop in prices so I think even Canadians. Who are Smart investors might have said yeah this is a great time to get into the US housing market. And they've come here -- taken advantage of low prices and also low interest rate. So given this kind of for an interest there's really two ways you can look at this either one we're an incredibly hot commodity or two we can't afford our own property -- What what what's the prevailing opinion. I think it's both of those things honestly Dan there clearly is a problem with Americans Thanksgiving with with that especially first time homebuyers having a hard time. Saving up for the 20% down payment they -- also very difficult to get loans these days. Meanwhile you've got people in the middle market who can't sell because they still -- they've lost value in their home and are under water. So are our if -- if this were just the US market it's very gunk up. You've got four people coming in from outside the United States who don't have those problems a lot of these fires are paying cash -- -- and have to deal with alone. It's perfect opportunity for them and this will actually sort of lubricate our market a little bit get some activity going. I mean it's a good thing if you've got people who are buying homes are really from -- no matter where they're from because that. It's good that -- is gonna increased demand for homes can get the whole thing restarted again it's also going to lift prices so you need all of those things to happen and in order for this overall market to recover and how. -- to start somewhere so I don't think we should complain. About where this demand for US housing is coming from I think we should be. Happy that we actually live in such a dynamic place that people want to buy homes here. Everyone wants a piece of us. A host Rick and noted that got you. Rick and -- from Yahoo! finance ought to try not to get fired today thank you so -- for joining us. You can keep up with the latest headlines right here on abcnews.com. You go much in the big number again at their New York.
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