You have some pretty warped impression of what kind of “immigrants” are coming here and buying homes in areas like Carmel Valley/La jolla/Del Mar. Bet you think these are bunch of salaried slaves that are on H1-B Visas, or even illegals etc.
Well, I hate to burst your bubble here. But a lot of these Asian people are richer than you or I will ever become.
When I refer to Asian, I typically mean Chinese, Korean, Japanese…..I can’t speak for the other asians as I haven’t really interacted with the others. So I wouldn’t know what they’re like and what their value system is. But Koreans, Japanese, Chinese, Taiwanese have very similar value systems.
A significant portion of these people coming are execs of businesses or own corps/ businesses. They don’t take out a loan out out for a $1million home. They usually pay cash. Or if they do take out a loan, it’s because they know they can beat the 30year fixed jumbo rate tucking the $1million into investments elsewhere.
And for the rest of them, a good portion of them are upper middle class with the financial means to either buy out the home outright or at least live within their means to weather any storm…
You have to understand there are some attributes about Asians that explain why they live in Carmel Valley.
1) Education and family is extremely important. As such, Asians typically want to live in an area with a superior public school system. Carmel Valley school is one of the better school systems.
2) Asians typically are much more frugal that average. You can usually tell who are the millionaires, because they’re they ones that wear in public t-shirts with holes in them and drive around in a 96 Toyota Camry or Honda Accord. They would rather be a home owner than eat out every day, spent $100/month on cable, or $500/month on a BMW lease.
3) Most of them have in-laws that live with them. As such, they need a bigger place or need to buy a second place to keep their sanity.
4) Most asian immigrant that had the means to get here are much more financially literate than the average American.
5) In case you haven’t noticed, 90% of the crap Americans buy these days is made in China. For the past 10 years we’ve been doing a great job sending our money overseas. So, it’s not just that because the dollar is devalued. Our money is literally overseas.
5) Asians typically want to live in areas have people demographically is similar to themselves. Since more Asians have been moving into Carmel Valley, this will be viral. As such, I would say a decent 4-5 bedroom Carmel Valley home in a decent location should probably be able to weather the storm pretty well. We’ll probably see some dips as people who didn’t have the means to live in a SFH in Carmel Valley get foreclosed. And some of the crappy homes in Carmel Valley will probably have problems (Palacio). Also, the Condo/Townhome market is pretty much toast because this would not be an ideal home for most Asian families with 2+ kids…
Don’t believe me?..Go visit Cupertino in the Bay Area or one particular pocket in Fremont,CA. The only reason why Cupertino is so much more ridiculously priced than neighboring Sunnyvale, San Jose, Or Santa Clara is because of the school district. And while the rest of Fremont is a horrible place to live, one particular area in Fremont with access to the Mission San Jose High School district is much more expensive than the neighboring areas. And it explains the lawsuit that several Asian parents filed when Fremont Unified tried to redraw the district lines.
Anyway, from that you can deduce a couple of things. The homes around 56 corridor are probably dead (not part of Carmel Valley schools). And 4SRanch also.
