Is US real estate over-priced?

Yes, according to the average wage of its citizens. We used to use the 2 and 1/2 rule. If you're making 100K a year, you're supposed to afford a house costing 250K. You need a couple making 200K total to afford a 500K house. Our current financial problem is due to greed and folks not sticking with this basic rule.

No for some foreigners. Hong Kong folks are paying 1 million for a 700 square feet apartment (prices vary depending on location). If we can attract these foreigners to buy by offering them residency, they will invest.

We lost the opportunity in 1997 when HK was handed over to China. Vancouver took advantage of it, and its real estate price was increased 100% in several short years and the price is still strong today. 

Now, the opportunity is on China's rich who want to escape from pollutions, quality food, prosecutions from corruption, opportunities of their children... We have to screen the right folks who will contribute to our country.