At the beginning of 2023, many people thought that the "small spring" of the real estate market was a signal of market recovery, and they entered the market one after another, but soon this short spring was blown away by the cold wind. If the "little spring" of the real estate market is short-lived, the ensuing wave of price reductions is like an endless rainy season, drenching the enthusiasm of countless ** people. Let's take a closer look at what profound revelations the changes in the real estate market have brought us.
First of all, we need to realize that any volatility in the real estate market does not happen in isolation. The continuity of second-hand housing prices reflects the uncertainty of the entire economic environment and changes in consumer psychology. When people are not very confident about their future income, they will naturally reduce their investment in goods of the highest value, and real estate is undoubtedly one of them. The ** of housing prices is also a direct reflection of the imbalance between supply and demand, oversupply, and housing prices will naturally decline.
And for those buyers who plunge headlong into the market, their disappointment and anxiety can be imagined. What they may not have anticipated is that the bottom of house prices is not fixed, and that market volatility is the norm. Of course, this is not to say that their choice is completely wrong, but it shows that in the face of a large market like real estate, the power of the individual is too small.
*Playing a particularly critical role in this market correction. In the face of housing prices, a series of optimized real estate policies have been introduced, and the frequency of regulation has reached an unprecedented level. However, the policy did not have an immediate effect, and the market downturn not only did not effectively reverse, but seemed to have worsened the situation. This can't help but make people wonder whether the introduction of the policy has really touched the core of market adjustment
Banks have also strained their nerves in the process. The prevention of financial risks has always been the most important concern of banks. Although banks do not care about the rise and fall of housing prices per se, the health of the real estate market is directly related to the safety of bank loans. The instability of housing prices can lead to an increase in loan defaults, affecting the asset quality of banks. Therefore, banks have a vital interest in the sound development of the real estate market.
From the bank's point of view, solving the debt problem of real estate enterprises has become an urgent task. Market-oriented and rule-of-law measures are a fundamental solution, not an expedient measure. Although the results of this approach may not be immediate, it is laying the foundation for the long-term health of the market. In the delicate balance between finance and real estate, every policy adjustment by banks and ** may become the key to influencing the direction of the market.
In this process, the survival status of real estate enterprises has also become the focus of market attention. The decline in housing prices has directly affected the sales revenue and cash flow of real estate companies, and many real estate companies are facing unprecedented pressure. How to seek space for survival and development within the first-class policy framework is a serious problem in front of real estate companies.
The mentality of home buyers has also changed subtly in this turmoil. In the past, property was seen as a sound investment. But as the market has changed, people are starting to re-examine this traditional notion. This is especially true for young people, who are more interested in improving their quality of life through real estate than simply investing. Therefore, when house prices fluctuate, they may react more rationally and calmly.
There is another factor behind this wave of price reductions that cannot be ignored, and that is the advancement of technology and the emergence of new housing models. The sharing economy, the rise of the short-term rental market, and the fact that more people are choosing to rent rather than buy a house have somewhat weakened demand in the traditional real estate market. People's demand for housing is changing, which is a big challenge for the real estate market.
Behind all this, we may see a deep-seated change: the real estate market is shifting from the past incremental market to the stock market, the market competition will be more intense, and the transformation and upgrading of real estate enterprises is also imperative. In such a market environment, those companies that can quickly adapt to market changes, implement refined management and innovative development models will be more likely to stand out from the competition.
On January 4-5, 2024, the People's Bank of China Work Conference was held in Beijing, which focused on a number of key topics, especially on the adjustment of housing loan policies. During the meeting, participants focused on how to guide commercial banks to reduce the interest rate of existing first home loans in an orderly manner. This topic is proposed to alleviate the financial pressure of the current market and at the same time promote the stable development of the real estate market.
Reasonable first home mortgage interest rates are essential to maintain a healthy property market, especially in the current context of increasing downward pressure on the economy. By lowering the interest rate on loans, you can reduce the financial burden on home buyers, boost market confidence, and promote the stability of the real estate market.
It is important for financial support to support the real economy, and it is hoped that commercial banks will provide more flexible loan solutions to support reasonable housing needs while guarding against potential financial risks. Through the implementation of these comprehensive measures, it aims to achieve the principle that houses are for living, not for speculation, and promote the long-term healthy development of the real estate market. We can basically real estate in 2024, and it's finally dawn!
Epilogue. With the successful conclusion of the People's Bank of China work conference, it is clear that the prudent monetary policy will continue to be implemented in the new year. Among them, the measures to guide commercial banks to reduce the interest rate of the stock of first home loans in an orderly manner demonstrate the central bank's firm commitment to stabilizing the real estate market and supporting the real economy.
These policy adjustments and discussions are not only aimed at addressing short-term market volatility, but also with an eye on long-term market health and sustainability. With the gradual implementation of these policies, it is expected to bring positive changes to the real estate market, provide substantial benefits to the majority of home buyers, and inject new impetus into the stable growth of China's economy. In the future, all parties in the market will continue to pay attention to the effect of the policies and how these policies can play a role in promoting the stable and healthy development of the market.