Sound Off in the SF Chronicle
What world (or domestic) issue may potentially have the biggest effect on the Bay Area’s real estate market?
Anybody out there have the same thought as I do?
The article states:
By far the most powerful effect on the Bay Area market will come from China.
If they have trouble, the entire world feels it. It’s not just the Chinese money buying houses and other real estate that is the concern. It is that the uncertainty would make people pull back.
One of my economist friends reminds me we are seven-plus years into a run-up.
The normal cycle is seven to eight years up, then the same down, so we are due for a pullback.
A little push from a Chinese economic slowdown or internal strife would make every economy in the world shudder. However, it is fascinating how fast an authoritarian society could switch to capitalism and act to manage it. This may help to ameliorate any economic trouble.
When President Richard Nixon opened up trade relations with China, one of the goals was to make us interdependent to avoid war and conflict.
Well, we are now tied at the hip and have to deal with the consequences. Better a little economic trouble than a shooting war.