- The U.S. housing market’s good days could come to an end thanks to coronavirus.
- Chinese investors have played a key role in propping up the market.
- They could take away billions of dollars worth of demand thanks to the epidemic.
A low mortgage rate environment and the lack of inventories have been tailwinds for the U.S. housing market over the past year. But the coronavirus epidemic is one big threat that could cause the U.S. housing market bubble to burst at last.
Realtor.com reports that the effects of the coronavirus outbreak in China could have a domino effect on the U.S. housing market thanks to the influence that Chinese investors exercise stateside.
Chinese Investors Hold The Key To U.S. Housing Market Gains
Citing data from the National Association of Realtors, Realtor.com says that Chinese buyers spent $13.4 billion to buy homes on U.S. soil from April 2018 to May 2019. But this was 56 percent lower than the same period a year ago when Chinese investors had pumped in over $30 billion into the U.S. housing market.