The property market ushered in a cliff like decline .The situation may go to two extremes, and the

Mondo Social Updated on 2024-01-28

In recent years, with the continuous introduction of the country's regulatory policies on the real estate market, the trend of the property market has also shown obvious differentiation.

On the one hand, housing prices in first- and second-tier cities are still high, which discourages many people who want to buy a houseOn the other hand, housing prices in third- and fourth-tier cities have begun to appear "cliff-like" after a round of crazy **, which has put many people who have already bought houses into a predicament.

This polarized situation has brought a lot of pressure and uncertainty to the people, so how should we deal with such a situation?

1. Housing prices in first- and second-tier cities are still firm

First- and second-tier cities refer to cities with developed economies, dense populations, and concentrated resources such as Beijing, Shanghai, Guangzhou, and Shenzhen, where housing prices have been at a high level and have a strong ability to resist declines. This is mainly because these cities have scarce land resources, high-quality education and medical resources, abundant employment opportunities, rapid economic growth, strong population attraction and other factors, so that the real estate market in these cities has a high demand and investment demand, thus supporting the stability of housing prices.

According to the data of the National Bureau of Statistics, in November 2023, the number of newly built commercial residential buildings in first-tier cities increased by 8 year-on-year6%, and the new commercial housing in second-tier cities increased by 6 year-on-year8%, both higher than the national average.

2. Third- and fourth-tier cities are in a cliff-like situation

Third- and fourth-tier cities refer to cities other than first- and second-tier cities, where housing prices have also experienced a rapid increase in the past few years, and even some cities have seen more housing price increases than first- and second-tier cities.

This is mainly because these cities have been stimulated by the country's destocking policy, as well as the promotion of some places, there has been a large number of real estate development and sales, attracting many speculative buyers, forming a kind of "speculation" boom. However, this kind of ** is not sustainable, because the real estate market in these cities does not have enough rigid demand and investment demand, but relies on the support of credit and leverage, once the policy is tightened or market confidence is shaken, there will be a situation of oversupply, resulting in a large ** in housing prices.

According to the National Bureau of Statistics, in November 2023, new commercial residential buildings** in third-tier cities decreased by 1. year-on-year2%, and the newly built commercial residential buildings in fourth-tier cities decreased by 2% year-on-year4%, both lower than the national average.

1. Don't sell your property impulsively

For ordinary people who have already bought a property, in the face of the pressure of housing prices, do not sell the property easily, because this may cause greater losses.

First of all, the house price ** does not mean that the property has no value, the property itself is a physical asset, with use value and value preservation function, as long as there is no extreme situation, the value of the property will not be zero.

Secondly, housing prices do not mean that housing prices will always be, the fluctuation of housing prices is affected by many factors, sometimes periodic, sometimes temporary, sometimes local, as long as there is reasonable expectation and patient waiting, housing prices may appear ** or stable.

Finally, housing prices do not mean that there is no market for real estate, the market for real estate is determined by supply and demand, as long as there are suitable ** and conditions, there will always be buyers, do not reduce their bargaining power because of the rush to sell.

2. Maintain the mortgage in the form of lease

For the people who are still repaying the mortgage, in the face of the pressure of housing prices, they can consider supporting the mortgage in the form of rental, which can reduce their burden and increase their income.

First of all, renting a property can provide a stable cash flow for yourself, which can be used to pay the principal and interest of the mortgage, or to invest in other projects to increase your return on assets.

Secondly, you can keep a property interest for yourself, you can enjoy the appreciation potential of the property, and you can also choose to live in it at some point in the future and maintain your flexibility. Finally, renting real estate can add a social responsibility to oneself, can provide some housing resources for the society, meet the needs of some people with rental needs, and can also promote the healthy development of the real estate market.

3. Refuse to "extravagant and wasteful" consumption

For ordinary people who have not bought real estate, in the face of the pressure of housing prices, do not think that housing prices are their own opportunities, and go to some "extravagant and wasteful" consumption, because this may bring greater risks to themselves.

First of all, housing prices do not mean that housing prices are cheap, the level of housing prices is relative, to judge according to their actual situation and affordability, do not blindly follow the trend or listen to the opinions of others, and go beyond their financial range, otherwise they may fall into the quagmire of debt.

Secondly, the house price does not mean that the house price is reasonable, the reasonableness of the house price is multifaceted, according to the location, quality, supporting, prospects and other factors of the property to consider comprehensively, do not only look at the number of house prices, and ignore the essence of the property, otherwise you may buy some "unfinished buildings" or "ghost towns" and other problem houses.

Finally, housing prices do not mean that housing prices are irrelevant, changes in housing prices will affect the economy and stability of the whole society, to have a clear understanding and judgment, do not relax their financial management and life planning because of housing prices, otherwise you may miss some better opportunities and choices.

Therefore, for the people who have not bought real estate, in the face of the pressure of housing prices, we must refuse to "extravagant and wasteful" consumption, have a reasonable budget and goals, have a long-term vision and plan, and have a balanced mentality and attitude, so as to maintain our rationality and wisdom in the changes in the real estate market and lay a solid foundation for our future.

The trend of the property market is a complex issue, involving many factors and interests, which cannot be explained clearly in one sentence. As ordinary people, we do not need to pay too much attention to and worry about the changes in the property market, nor do we need to blindly follow and imitate the hot spots of the property market, but to make choices and decisions that suit us according to our actual situation and needs.

The "cliff-like" of the property market may be a crisis, or an opportunity, and the key lies in how we view and respond.

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