Since the second half of 2021, China's real estate market has entered a new downward trend. According to the data of the National Bureau of Statistics, we can see that by the end of 2023, 62 of the 70 large and medium-sized cities in the country have seen a month-on-month decline in new homes**, while the second-hand housing market has declined across the board. This phenomenon fully reveals the current adjustment trend of the real estate market and the intensity of competition.
In the face of such market changes, many people are wondering: should we seize the opportunity to sell the house now, or should we hold on to it? In this regard, the pedestrians explain the essence of it, what is going on?
At present, China's real estate market is experiencing a long downturn, which is undoubtedly a huge challenge for the majority of investors and buyers who just need to buy a house. The reason why the real estate market is showing a downturn is mainly caused by the following reasons:
1.Reduced demand for home purchases
First of all, after 3 years of special events, it has had a profound impact on people's consumption concepts. Many people have experienced varying degrees of income plummeting or even unemployed, which has led them to re-examine their home purchase plans.
Many people are starting to focus more on saving and emergency funds, preferring to save money for emergencies rather than buying a home. At the same time, many people are becoming more and more rational in buying a house, no longer blindly pursuing the best of house prices, but making home purchase decisions according to their own actual situation. This rational concept of buying a house has caused both rigid demand and improved housing demand to shrink significantly.
Secondly, with the increasingly obvious aging trend in China, this has reduced the demand for housing to a certain extentBecause many elderly people usually already have one or more stable homes, they obviously lack the need and enthusiasm to buy a new home, which also has a big impact on the property market.
In addition, the perceptions of many young people have changed. With the development of society and the popularization of higher education, young people's ideas are becoming more and more open and diverse, and many young people no longer think that owning a house is a factor of priority, and they are more willing to devote their energy to career development, personal interests and travel and other richer life experiences, this change in perception has undoubtedly had a great impact on the real estate market.
2.The exit of the speculator
In the past 20 years, housing prices have soared, attracting a large number of investment buyers to frantically pour into the market, however, now in the "housing not speculation" principle, real estate regulation and control efforts have gradually strengthened, the policy has introduced a series of purchase restrictions, loan restrictions, sales restrictions, these policies have a restraining effect on investors' demand for housing, but also make the real estate market money-making effect gradually disappear, many investors choose to withdraw from the market.
In addition, the investment psychology of many people in China is generally "buy up, not buy down", that is, when the house price is **, people are more willing to chase up and buy, and when the house price is **, people are more inclined to take a wait-and-see attitude. This psychological phenomenon has affected the supply and demand pattern of the real estate market to a certain extent. When investors see that the market is not trending well, they may choose to exit the market, which in turn exacerbates the downturn in the property market.
At this time, when we are faced with the decision to sell a property, the wisdom of whether it is wise depends mainly on the individual's financial situation and understanding of the current real estate market. After reading the above analysis, I believe you already have the answer, and it is definitely wise to sell the property now. Of course, we don't have to think about this problem at all, we are mainly talking about selling excess property.
1.The acceleration of the supply of affordable housing
At present, China's major cities are speeding up the process of affordable housing into the market, and the implementation of affordable rental housing, co-ownership housing and other projects can not only provide more housing options for urban low-income families, but also divert the demand of the commercial housing market.
The demand of the commercial housing market will be eased, the pressure on the commercial housing market will also be reduced, and the housing prices will gradually return to a reasonable level. In this case, the excess property can effectively respond to market changes and avoid the financial risks caused by house price fluctuations.
2.The impact of property tax policy
With the imposition of property taxes in the future, the cost of property holding will undoubtedly rise significantly. For those who own multiple properties, this change will undoubtedly come with significant financial stress.
The collection of property taxes is an irreversible trend. With the regulation of the real estate market, the introduction and implementation of property tax may have entered the countdown. Once implemented, people who own multiple properties will face a higher tax burden, especially for those who own multiple properties, which is undoubtedly an issue to consider in advance. Therefore, selling the excess property can effectively reduce this financial burden.
3.The vacancy rate is too high
Judging from the official statistics, we have to face a grim fact: China's housing vacancy rate has reached 15%, and some provinces even reach 25% to 30%, and more than 1.4 billion people in China may not be able to live in houses of this magnitude.
A vacant house is not just a waste of resources, it's a financial burden. These vacant properties not only occupy a large amount of land resources, but also may bring a series of social problems, such as real estate bubbles, economic instability, etc. Therefore, selling excess property is not only an effective response to current market risks, but also a sign of responsibility for the future.
For those who own two or more properties, making an informed decision is key. What we need to be clear is that first-tier cities and third- and fourth-tier cities should plan different strategies.
First of all, for properties in first-tier cities or hot cities, it is a wiser choice to hold them appropriately. These cities have a strong economic development, a large inflow of people, and a stable market demand. Even when the market is down, there is some support for housing prices in these cities, and the space for housing prices** is relatively limited.
If possible, it is advisable to conduct a comprehensive assessment of the property to understand its quality, location, market demand and other factors to ensure that it can perform well after the market recovers.
For properties in third- and fourth-tier cities, the situation is different. The economic development of these cities may be relatively lagging behind, with a large population outflow and unstable market demand, which may form a large backlog for a long time.
In this case, it may be that the speed of the property is very fast and the amplitude is also large, so it may be a wise choice to consider making a timely sale or **. After all, once the price of housing exceeds your expectations, it will cause greater economic losses.
However, in the process of selling a property, we also need to consider the quality, location, taxes and transaction costs to ensure that the benefits are maximized, and at the same time, we also need to understand and properly handle possible disputes and problems.
In general, whether it is "wise" or "stupid" to sell a house in 2024 is something we need to make based on different circumstances. Properties in first-tier cities or hot cities have good market prospects and can be appropriately held or even increased. In the decision-making process, we need to comprehensively consider various factors to ensure that the benefits are maximized.