Is it wise or stupid to sell a house now?Insiders reveal the answers

Mondo Social Updated on 2024-01-29

The real estate market has always been in the spotlight, both in the past and in the present. Since the public health incident, the real estate sector has taken a major hit, with many areas seeing a massive decline in house prices. In this case, some people who hold multiple properties have chosen to sell their properties in order to reduce their losses.

In the face of this move, it has sparked widespread discussion about whether it is "wise" or "stupid" to choose to sell a house now in the current market environmentSince there are so many aspects to this question, an insider will analyze it in depth and reveal the answer.

1. Reasons for the downturn in the real estate industry.

According to relevant data, the sales area of commercial housing in China decreased by about 10% compared with previous years last year. And according to industry insiders, in the next two years, the sales area of commercial housing may only be 1,01.2 billion square meters. It can be seen that the downturn in the real estate market has become the general trend, and the reasons for this phenomenon are also multifaceted.

First of all, from the perspective of home buyers, although housing prices have fallen now, they are still out of reach for the vast majority of people, and they must take out a loan to buy a house, and a loan is decades. However, after the public health incident, the employment environment in China is not good, and many people have suffered unemployment or salary cuts.

Moreover, now that China has implemented the policy of "housing not speculation", the former speculators do not dare to start easily, and even choose to sell their properties, so many people do not dare to buy houses easily, and in this situation where there is no demand, the transaction volume of houses will naturally decline.

Secondly, from the perspective of real estate companies, the funds of real estate companies are also limited, and if you want to buy land and build a house, you also need to borrow from the bank. In the past, as long as there was off-plan housing**, there were many buyers rushing to buy, and the profits of real estate companies did not have to worry about at all.

But nowadays, fewer and fewer people are buying houses, and the profit margins of real estate companies are not as good as before. In this case, the flow of funds of real estate enterprises is blocked, and some developers will build houses or delay delivery, while some developers will directly choose to finish.

In the face of the frequent occurrence of unfinished phenomena, ordinary people dare not easily believe in real estate companies, let alone easily invest hundreds of thousands of yuan in expired houses. In view of this, many real estate companies have begun to sell existing houses in order to be able to recover their costs in time, but the effect is not satisfactory.

Finally, the construction of affordable housing. For a long time, the construction of affordable housing has been a key focus of work in China. According to relevant data, in the past 10 years, China has invested a total of 148 trillion to build various types of affordable housing, while also renovating more than 59 million resettlement houses in shantytowns, so that 1More than 400 million people have a new home.

In this case, some people may choose to buy a house, but the vast majority of people will no longer consider buying a new house after having affordable housing, which will undoubtedly have a certain impact on the real estate market.

Second, it is stupid or wise to sell a house.

Judging from the current real estate market situation, whether it is stupid or wise to choose to sell a house now, perhaps the vast majority of people will think it is wise. But in fact, the answer is different in different situations, and the key lies in the city where the property is located.

Although it is a fact that the real estate market is sluggish, on the whole, housing prices are still very high, especially in first- and second-tier cities, where the economic development is relatively fast, and there are still great advantages. As for the third- and fourth-tier cities, due to the gap in economic development and the large loss of population, the demand for housing will decrease, and housing prices may also fall.

Therefore, if the property is in a third- or fourth-tier city, it may be a wise choice to choose to sell, so that after holding a certain amount of savings, you can also invest in other value-added projects, such as foreign trade economic consignment sales that take advantage of the rise of the policy wind, and a profit of 1% every 30-day cycle. However, if the property is in a first- or second-tier city, and the geographical location is relatively good, and the supporting facilities are relatively complete, then it may be a foolish choice to choose to sell.

In short, it may be wise to choose to sell now, but it may also be stupid, depending on the actual situation. However, before making any decisions, everyone should be thoughtful and fully understand the market situation, so that unnecessary risks and losses can be avoided and economic goals can be maximized.

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