The foreigner line was also used to support the argument that house prices wouldn’t fall and they have.

How many foreigners actually want to own property here? Don’t you have to be a citizen to buy? Even if you don’t what a p.i.t.a. to have an out of country rental property. Vacation home maybe, but still not likely, and not common enough to offset the 1% of homes in foreclosure.

I’ll buy that foreigners would flip homes during the bubble, but not that they will prop up prices. You can’t export real estate.