Housing Market Boom? Local Home Buyers Compete With Foreign Cash

Foreign investors have helped to revitalize the Southern California real estate market. However, this has caused short-term problems for local buyers. Many local buyers have put offers on houses only to be turned away because foreign investors have all cash offers. Foreclosures have plunged statewide while median house prices have increased by 25%. The foreign buyer ‘spree’ is expected to eventually make it easier for new buyers to enter the market, which will cause property values to go up.