The prices of real estate in major selected urban centers are still going up. But job growth and wages cannot keep up the pace, in fact, they lag behind very badly. People are earning too little to afford the rent in many major cities, isn’t enough for the rapidly eroding middle class citizens. Rental prices usually commensurate with the value of the real estate property, be it an apartment, condo unit or house. The rentals are getting more expensive as wealthy off shore buyers, local speculators and some very naïve buyers, are driving the real estate housing prices through the roof.
But what if China’s economy crashes, or tightens up loopholes which allow wealthy Chinese parking moneys in the US real estate?
Will the average American middle-class buyer be able to consider buying into already overvalued real estate in those hot-spot cities such as San Francisco, Portland, Seattle,