Are foreign investors driving up the real estate prices in California?

In 2006, approximately 10% of California single-family houses were purchased in all-cash transactions. Now that number is almost 25 percent.  Real estate experts believe that foreign buyers are a major force here as they are often use cash to buy houses in America.

Last year, approximately 70% of all houses in California were sold to foreign buyers. Chinese buyers in particular love to buy houses in California. California is the favourite state for Chinese buying in the US.  They are in search for houses located in good school districts, they believe the prices in California are cheap compared to the house prices in China, they enjoy the nice Californian weather and the large Asian community that already lives there.

Read the full article here on CityWatch.