Inventory is up as well in many locations: https://www.calculatedriskblog.com/2018/08/lawler-few-hot-ma...
Signs are pointing toward a correction in the home price insanity, hopefully this will make things more affordable for everyone.
Signs are pointing toward a correction in the home price insanity, hopefully this will make things more affordable for everyone.
1) Trump put tariffs on Chinese imports
2) The Chinese retaliated by devaluing their currency, to negate the effect of the tariffs
3) This had the net effect of strengthening the US dollar
That's why home prices are flat-ish in 2018.
Besides, the RMB hasn't been devalued (as in the standard definition, which is creating a new currency and dropping a few zeros). It has risen from 6.29 RMB to 1 USD in April to 6.86 today, but that is +10% and the tariffs are +25%. But a year ago the RMB was 6.68, so the year-over-year increase is +2.6%.
Of the four assertions, only #1 is correct.
This is ignoring the fact that a strong dollar makes real estate in the US a much, much more attractive investment. Not only do you get a decent appreciation in real value if you own in a desirable areas, but you also enjoy the relative appreciation in value relative to the currency you buy goods in. Chinese investors holding real estate in the coastal USA have done quite well in the past decade.