All of the above, except it would probably require rejuggling of resources to make things liquidable or a small light conforming loan.
Folks that think RE markets here are crazy need to take a look at the insanity in places like Beijing, Shanghai, etc. Bubble appreciation 2-4x in just a few years is even more ridiculous. For example, Sis in law purchased a lakefront home in outskirts of Shanghai at $400KUSD with 20% down. Currently renting to expat VP for current exchange rate converted. $4200USD/month. And she has no capital gains, income tax to pay on this whatsoever. So for example, she could nominally buy a place here with a very light loan that she could probably secure overseas, not factoring in additional USD devaluation relative to the RMB if the RMB does eventually float.
And the other thing, let's say the dollar gets wacked another 20-30% versus the other world currencies. Even those loony buyers north of us will start think RE is cheap here, if there are no actual drop in prices. Add in a price drop, appearance would seem to be even more of a bargain.
That's why I'm starting to think a crashing dollar isn't going to be a good thing in terms of housing affordability for people here dependent on the dollar. Relative to the world, we will just be much poorer. But I'm no economist, so what do I know.
