Is foreign money keeping San Diego prices steady?

[Alex_angel]

I am not basing this on data but just on observations.

I live in Carmel Valley and recently when I am at the local grocery store or starbucks etc… all I hear are foreign accents and language. It seems to me that there has been an influx of people from Europe and Asia moving into San Diego and thus sustaining the house prices. These people move here without credit so I presume they are putting up a lot of cash to buy the homes they live in.

I am seeing this as well at lots of model home tours. Over the last month I have visited every model home site in Carmel Valley, 4S and Del Sur and almost everyone one that was touring was speaking in a foreign language. It seems to me that money follows money and San Diego is now seen as “The place to live” when people outside of the US look for somewhere to move to.

Again this is just an observation but I would love to hear what any of the realtors have to say to this since they are dealing with the buyers.

[Borat]

These people move here without credit so I presume they are putting up a lot of cash to buy the homes they live in.

In case you haven’t noticed, they give home loans to ANYONE including illegal aliens. Basically, if you are a living mammal some crooked mortgage broker will probably loan you the money for a $600K home. This is stopping now but it has been the case for the last few years. Foreign money is keeping the home market afloat, just not in the way you think. Foreign money buys a lot of doo-doo loans packaged into MBS. Without buyers for these garbage loans the whole house of cards collapses.

[kicksavedave]

A living mammal… no kidding!

http://www.netscape.com/viewstory/2007/01/03/a-cat-gets-credit-card-with-4000-dollar-limit/?url=http%3A%2F%2Fwww.news.com.au%2Fstory%2F0%2C23599%2C21009505-2%2C00.html&frame=true

Not a $600K house, but credit, nonetheless.

[lendingbubblecontinues]

Hello,

I me too am living mammal, new to sD,a nd I need to buy house soon. Perhps, help me soon. Oke.

[kewp]

Heh.

I was arguing with a friend about the housing bubble (he’s a recent buyer), whom claimed that it was just the foreign money that was going to get wiped out. He said all the ‘white people’ were too smart to fall for the suicide loans.

Opinions are like @$$holes, after all, I guess.

[Cow_tipping]

Rich foreigners … freaking oxymoron. No rich foreigner (especially after the conversion into dollars) is going to come to the USA. Only working class stiffs from 3rd world countries like India (in my case) and we are begining to think twice cos India of late has a improved quality of modern amenities and good jobs with better job security, in your home town etc etc … no having to move every 3 years cos you cant find a freaking decent job in your present town etc …
Cool.
Cow_tipping.

[hipmatt]

Since our dollar is so damned weak against foreign currency, it makes a bit of sense for them to come over here and live like Kings.

[PerryChase]

Actually if you compare San Diego prices to cities such as Paris, London, Hong Kong, Shanghai, Barcelona, etc…, our prices are comparatively low — even more so considering the weak dollar.

However, it’s very hard to get residency. Foreigners do buy house for their children near university campuses. If you can afford the out-of-state tuition, you can get a student visa.

Property taxes and HOA in America are very high so the holding costs add up.

Foreigners have their own deflating bubbles to worry about. The difference this time, is that the bubble is worldwide, not just in certain local markets. I worry about a global recession if housing prices around the world drop by 50%.

[bob007]

I doubt foreigners are buying property in interior San Diego. Chinese are buying mortgage bonds. Certainly first generation immigrants from India/China are buying in the good school districts of Silicon Valley.

[sdrealtor]

While they arent buying everywhere, Carmel Valley is certainly a hotbed for well to do foreign families.

[Anonymous]

They are also all shopping at Fashion Valley mall. I feel like I need a translator every time I go there.

[Anonymous]

Whoa there!

I hate to break it to some of you, but the “foreigners” here in SD (and anywhere else) are some of the most resourceful and industrious people you can find. Else they’d still be back in some 3rd-world s-hole. They are often far better at money management than Manolo-buying beeoyches that were born and bred here in SD. Besides, money is green, and as long as they’re a positive contribution to the dwindly tax base, I say come one come all. To all of you who are threatened by the newcomers, get some skills that can’t be readily outsourced, and then let’s talk.

[anxvariety]

I used to work with a Ukranian guy and he claimed that lots of people emigrated over here from Russia and paid cash for their houses in Del Mar.. he was implying some corruption type money that was fleeced somewhere in Russia… is this relevant? Or are we just seeing people coming to work in Sorrento Valley filling skillsets that are in shortages here..

[Anonymous]

You sound awfully defensive, shawny. You speak English, so you were not who I had in mind. My beef is with people that come to this country and refuse to learn the language. Of course, these are not the people buying houses in Carmel Valley (or at least I think they’re not). But then again … wasn’t Bof A giving mortgages to illegals?

[CostaMesa]

You sound awfully racist, sdjdguy. In a weakly closeted way, but nonetheless obvious.

How long did it take you to learn a foreign language as an adult? Oh wait, you probably never did. I guess you feel like being a republican lawyer makes you somehow better enough than others to justify public expressions of disrespect.

Somehow I’m guessing that you don’t also believe the identical behavior expressed by many Parisians towards Americans is acceptable. See the hypocrisy?

[Author]

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