Don't their kids need to buy houses to in turn raise their kids in ? Or are they going to rent for the rest of their lives ?
One in five US women remain childless in life (pops). There may not be a need for as many houses.
Part of the recent runup in prices was due to bubble behavior in lending, and due to Mexican illegals buying houses on no-doc lending, and people buying houses on spec.
Once the prices come down to a more reasonable level, won't the following people start buying?
A) Legal Immigrants
Maybe, but they will not be able to do it with liar loans, "no money down" deals, crazy ARMs, or anything like that. Expect the mortgage market to tighten and that alone will keep a lot of people out of houses. Which is how it should be.
B) Those who have been saving to buy a house
Those people should be able to buy houses assuming they have good credit.
C) Foreigners with cash
I don't know. If you mean "for investment", do foreigners buy houses as opposed to commercial real estate?
Beverly Hills makes a Farsi version of their election ballots available. Does that tell you anything?