Categorized | International

Housing Market in China May Finally Be Starting to Stabilize

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After months of coping with stringent government regulations on the sale of homes and the issuing of mortgage loans, China’s residential real estate market appears to falling at a much slower pace. The overall decline in housing prices during the month of May was a bit less than had been seen in previous months.

The lessened decrease in pricing marks the first time in more than four months that the market performance was stronger than it was in the month prior. Economists are attributing the smaller decline to the easing of some of the heavy restrictions that have been in place over the last year. China’s government has opted to lax many of the restrictions in order to be a halt to the slowing of overall economic growth.

The latest numbers have to bring about some hope among developers, which have seen their business suffer greatly over the last year and a half. With that said, economists are advising developers and real estate agencies that they should not get overly excited just yet.

The housing market still experienced an overall decline in pricing. In fact, residential real estate values are less now than they were one year ago during the month of May.

Prices will likely continue to fall on a year-to-year basis, though there is an aura of hope that the market will soon turnaround, particularly if the property restrictions are eased even further.

While it is unlikely that the government will ease its restrictive limits on the number of homes that a person can buy, there are considering easing lending measures for first-time buyers.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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