Property market continues to be positive, why buyers are reluctant to enter the market?Will real estate rebound after The New Year?

2022-07-12 0 By

Houses are a cliche.People are keen to discuss house prices, mainly because the house occupies an important position in the heart of the people, as long as there is any wind in the real estate market, it will attract people’s attention, and then they will discuss the rise and fall of the property market, and then come to the conclusion whether to buy.As of December 2021, the transaction volume of commercial housing in key cities in China showed a steady increase, with the transaction area increasing by 10 percent month-on-month, according to data released by Kreis Research Center.First-tier cities saw a 6 per cent month-on-month rise in the area of new homes sold.As can be seen from the above data, the demand for housing in China’s key cities is still increasing.As we all know, as long as the New Year is over, the real estate market is bound to change.But there is confusion that the housing market remains in the doldrums since New Year’s Day.Even with the interest rate cut, the housing market has remained quiet, making most of its eagerly awaited buyers uneasy.Why do you say that?The main reason is that people always expect the real estate market to recover before the Spring Festival, but according to the current situation, this probability may be very small.Buying a house is a cautious thing, so even if the housing market continues to be good, but buyers are still reluctant to enter the market, because they are waiting for the right time.So, after all, real estate will pick up?If we look at the current housing market, we will certainly find that many new developments are at a standstill, and the second-hand market is crowded with unsold homes.So before we talk about whether the housing market will recover after the New Year, let’s talk about why the housing market is in the doldrums.The reason is simple. After all, as home buyers, everyone wants prices to fall further.After having experienced the property market regulation, the buyers of the experience are not willing to rashly enter the market.Before that, some cities had introduced restrictions on home purchases and loans for second-hand houses, which turned many home buyers away.At the same time, other third – and fourth-tier cities have more extensive loan restrictions, which is really not friendly to buyers who just need to buy, so people would rather continue to wait for housing prices to fall.As we said before, although the property market has been regulated, many newly needed buyers have lost the qualification to buy a house because of the policy of purchase restriction and loan restriction.Even though the current housing price has fallen somewhat, it has not actually reached people’s expectations. After all, for ordinary people, the current housing price is generally relatively high.So buyers are waiting until prices fall to their expectations.Based on the above situation, we can know that there are two major factors affecting the real estate recovery, that is, the excessively high housing price and the policy of purchase restriction and loan restriction.If these two problems can be solved, then the housing market will gradually recover in the coming year, and the recovery of the housing market is usually accompanied by two trends.The first trend is second-hand housing sales, volume amplification.As we all know, in recent years, the impact of the epidemic has made the working class suffer. Some have lost their jobs due to the bankruptcy and closure of their companies, while others have been forced to resign because their salaries have been cut in half.Once there is no job, it is tantamount to cutting off the source of income, let alone the new house, even the second-hand house can not afford.Therefore, if we want to revive the real estate market, we should reduce the sales price of second-hand houses and enlarge the transaction volume.Why only for second-hand homes?Because for most newly needed buyers, the second-hand house is lower than the price of the new house, so they would rather choose the second-hand house.If the pre-owned housing market shows a trend of low prices and large volume, then we can see a rebound in the housing market after the year.The second trend is the bifurcation of the housing market, which is expected to continue to fall.The so-called bifurcation of the housing market is that some people sell their houses, some people buy houses, and some people move to different cities to buy houses.Why this trend?We have been to the previous article, because some cities issued restrictions on the purchase and loan policy, resulting in part of the home buyers lost the purchase qualification.So in order not to continue to bear the mortgage, some people sell their houses, some people change from a small house to a large one, some people sell their houses in a small city and go to the big city to buy a house.If there is a big sell-off in smaller cities, prices are likely to fall.At the same time, the migration of population to big cities will inevitably lead to a rebound in the local property market, so the real estate recovery is more likely in the New Year.In general, the real estate recovery will be accompanied by the bifurcation of the property market, the trend of large second-hand housing turnover.These trends, however, require higher incomes and lower house prices to keep first-time buyers willing to jump into the market.What do you think?What do you think of the two major trends in the real estate recovery?Let us know what you think in the comments section.