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What is the impact of the US-China trade war on the US housing market?

What is the impact of the US-China trade war on the US housing market?
Asked by
Peter Kimani categorie-icon time-icon4 months ago
1 Answer Answer Question

Lillian McKenna
Answered time-icon4 months ago

Well, the US housing market is bearing the brunt of the US-China trade war given that property sales to Chinese citizens dropped 4% in 2018 compared to 2017 according to Juwai.com, a Chinese website that tracks foreign property sales.

Carrie Law, Juwai.com’s CEO said that inquiries from Chinese customers about US properties had dropped 27.5% in Q1 2019 compared to a similar period last year given the heightened trade tensions between the two countries.

The fact that the Chinese Government has implemented tighter capital controls has also resulted in lower cash outflows from China, which has significantly reduced the number and size of foreign investments being made by Chinese investors.

Therefore, while political leaders continue to squabble over trade negotiations and impose retaliatory tariffs on each other’s exports, investors in both countries are counting losses as the squabbles limit actual deals and stoke investor fears.

Most analysts believe that the signing of a trade deal between China and the US will be good for both economies once both leaders decide what’s best for their citizens.

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