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Comment by yggydrasily | Hacker News Reader

The "something else" is money laundering (i.e., all-cash purchases with zero oversight). Thankfully, the US government is finally starting to crack down on this stuff:

http://www.nytimes.com/2016/01/14/us/us-will-track-secret-bu...

But so far it's only in other cities. I'm hoping this will spread to the rest of the USA and then we won't have so many foreign criminals buying land with suitcases full of ill-gotten cash, driving up prices.

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Hopefully as the USD strengthens against the Yuan and Ruble, you'll start to see less international property laundering. Maybe even some will start to sell, putting supply back onto the market and lowering prices.

Strengthens against ruble in addition to 126%+ increase it booked over the past 24 months?

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&...

Yes. I should have said continues to strengthen.

With the continually dropping oil prices, the ruble isn't going to get better anytime soon.

I am not sure this is how that works.

Which part?

Chinese investors are putting money into SF real estate with the goal of exporting capital to safer havens.

Were China to choose to depreciate their currency (especially at a faster rate than they are currently) this could lead to an acceleration in attempts to export capital.

It's not clear which way this linkage works (at least to me)

The Chinese launderers are putting into SF property. In August 2015, 35% of new property in CA was bought by the Chinese (80% in Irvine alone).

If the Yuan weakens to USD, the Chinese have less buying power in the U.S. for laundering, and existing launderers will be incentivized to pull out (sell).

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