China's stock market turmoil and Silicon Valley real estate.

So, in case you've been living under a rock the past 24 hours, the Chinese stock market as well as the US stock market is taking a beating. Apparently China's currency is doing well compared to the US dollar which in turn is making their exports more expensive, so China is trying to manipulate their currency to make it cheaper, and this in turn is freaking out investors both in China and on Wall Street.

What does this have to do with Silicon Valley real estate? Well, this is just speculation on my part, but these investors in China are losing allot of money and because of that, they may want to recoup at least some of their wealth by selling the real estate they own here. If too many of these properties get put on the market it could drag the market down by creating an artificial buyer's market - a good thing for those in this valley looking to buy but have been sitting on the sidelines because property values are too high, but a bad thing if you are a non investor seller looking to sell. 

Another important thing to think about with regard to market crash is that there are many here in the Silicon Valley who are invested in the stock market through their 401K and/or their tech stock options they were given for getting hired on with the company they work for. Companies such as Google, Apple and Facebook give out stock options all the time to new employees as an incentive to come work for them. Anyhow, allot of these same individuals who haven't bought a home already here in the valley might have been planning on buying a home by cashing in their stock options. Now that stock prices of many of these companies are taking a beating, these buyers might deciede to sit on the sidelines longer, which will cause property values to go down. 

This could be a temporary market hiccup or a longterm market correction. It's too early to tell.
  

Here's a simple explanation for what just happened to the stock market