The removal of Chinese buyers has already started to weigh on luxury homebuilder Toll Brothers Inc, warning about slumping sales in California. Lennar Corp has also warned about the housing slowdown on West Coast markets, and how it's likely due to a pullback in buying from the Chinese. Gay Cororaton, a senior economist at the NAR, said a manufacturing slowdown in China and a declining yuan had deterred many Chinese homebuyers from purchasing US properties in 2018/19, mainly in the regions of the West Coast.
"Chinese buyers form a significant portion of international home sales in California, where home prices have been increasing steadily, and that has been one of the factors acting as a deterrent for home purchases, when the yuan has declined," Cororaton said."They might look for properties in areas that are less expensive than California, such as Texas and Seattle. And this could put downward pressure on prices in California," he added.
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