In this day and age, owners who can keep the value of their properties are not ** have undoubtedly surpassed the vast majority of home buyers. Whether it is a brand new home or a second-hand home on the market, the market value has generally fallen by 20% or more compared to the time of purchase. Especially for the second-hand housing market, if you want to make a big concession quickly, you often need to make a big concession.
In fact, many properties have been on the market for two years and are still in full swing. Properties with poor environmental conditions, such as those close to high-speed rail or waste disposal stations, are even more difficult to sell.
As for new homes, as sales are mainly controlled by developers, they are usually cautious in reducing prices so as not to cause dissatisfaction among existing property owners or even besiege sales offices to express their dissatisfaction. I understand the feelings of these owners, after all, the property they have invested heavily in has depreciated by hundreds of thousands in the blink of an eye, which is a blow to anyone. However, I do not support the practice of blocking sales offices from claiming compensation from developers.
After all, buying and selling is essentially a contractual act, and if the property appreciates in value, the owner will not take the initiative to share the benefits with the developer.
First, the real estate market has set off a "selling tide".
In recent years, with the continuous increase in the country's regulation and control of the real estate market, a series of policies such as purchase restrictions, loan restrictions, and sales restrictions have been introduced in various places, aiming to curb the excessive speed of housing prices and prevent bubbles and risks. The effect of these policies has also gradually emerged, and the relationship between supply and demand in the real estate market has changed significantly, and the situation of oversupply has begun to appear.
In this case, many home buyers are starting to have a wait-and-see mentality, hoping to wait until the price is ** before entering the market. And some owners who hold multiple properties have also begun to consider selling** to avoid more losses. This has led to a "sell-off" in the real estate market, with a large number of ** flooding into the market, and there are very few buyers. This further exacerbates the pressure on housing prices, forming a vicious circle.
Second, the depreciation of real estate is serious, mainly due to two reasons
In addition to the impact of supply and demand in the real estate market, there are other reasons for the depreciation of real estate. In my opinion, there are two main aspects:
1. The economy is in a downturn and the real estate industry is sluggish
Due to the impact of the global epidemic and some uncertain factors at home and abroad, China's economic growth has slowed down, and all walks of life are facing certain difficulties and challenges. As one of the important pillars of the national economy, the real estate industry is also difficult to stand alone. According to statistics, in 2023, the growth rate of China's real estate development investment will be 68%, down 23 percentage points;The growth rate of real estate sales was 87%, down 45 percentage points. These data show that the momentum of the real estate industry has weakened significantly, and the market demand is also shrinking.
In the context of the economic downturn, people's income level and spending power have also been affected, and the willingness and ability to buy a house have also decreased correspondingly. Moreover, due to the recession of the real estate industry, it will also affect the related industrial chain, such as construction, building materials, home furnishing, finance, etc., which will cause a greater drag on the entire economic situation. This creates a negative feedback loop that makes it difficult for the real estate market to recover.
2. The people have insufficient confidence in the future of the property market
Another reason for the depreciation of real estate is the lack of confidence in the future of the property market. This is mainly reflected in the following aspects:
Expectations for house prices. Because housing prices have been high, beyond the ability of many people to bear, and also face the risk of **, many people have a pessimistic attitude towards the future of housing prices, believing that housing prices will continue**, and even the possibility of collapse. This makes them reluctant to buy property in the current ** position, but choose to wait and see or find other investment channels.
Concerns about policy. Due to the increasing regulation of the real estate market by the state and the introduction of a series of restrictive policies, many people feel uncertain and worried about the future direction of the policy, worrying that the policy will have an adverse impact on their real estate, or miss the best time to buy and sell. This makes them shaken their confidence in the real estate market and do not dare to make decisions lightly.
Stress on life. Due to the high price of housing, many people have to take out heavy loans or sacrifice other quality of life in order to buy a property. This puts a lot of pressure on their lives, making them feel tired and frustrated instead of enjoying the happiness that comes with having a property. Moreover, due to the depreciation of the property, their assets have also shrunk, which has further weakened their confidence and motivation.
Third, the trend of housing prices is becoming more and more prominent, what should people do?
In the face of the trend of housing prices, what should people do?I think it depends on the different strategies that are taken in different situations. I will give you some advice from the following perspectives:
For owners who have already purchased a property, if there is no urgent need for **, I recommend that you do not sell easily, but wait patiently for the market to pick up.
After all, as a physical asset, real estate has a certain function of value preservation and appreciation, as long as your property is of good quality and location, it is still possible to appreciate in the long run. And if your property is owner-occupied, then you can also enjoy the comfort and security of living, which cannot be measured in money. Of course, if your property is an investment, then you can also consider renting it out to get a certain income and relieve some financial pressure.
For buyers who are ready to buy a property, if you have enough money and confidence, I recommend that you enter the market appropriately and take advantage of the opportunity of low prices.
After all, housing prices** are also a market adjustment, and perhaps a rare opportunity to buy a house. As long as you choose the right property that fits your needs and budget, it is also a good investment in the long run. Of course, you should also pay attention to analyzing market trends and policy changes, avoid blindly following the trend, and make rational judgments.
Write at the end
The real estate market is a complex system that is affected by many factors, and its movements are difficult to navigate. As ordinary people, we should maintain a peaceful mind, neither blindly optimistic, nor overly pessimistic, but according to their actual situation, make reasonable planning and decision-making, not only to grasp the opportunity, but also to avoid risks, not only to pay attention to housing prices, but also to pay attention to life, not only to pursue wealth, but also to pursue happiness, so as to find their own positioning and direction in this era of change.