The price of new houses in cities has fallen by more than 50%. Why are house prices still falling?

House is an eternal topic. For China people, the house represents too many things, bearing one family after another. At present, the price of new houses in China has dropped by more than 50%. What caused the continuous decline in house prices? I think there are several main reasons.

First, supply and demand.

In recent years, there is a large amount of land supply in cities. As far as the third-tier cities in Jiangsu, Zhejiang and Shanghai where I live are concerned, there are always several times a day for centralized land supply. After the land is sold, developers will think about how to withdraw funds as soon as possible, so now the house is built faster and faster. However, the population of a city is relatively fixed, and many small cities do not have so many people to support high housing prices. The house was built, but few people paid the bill, resulting in oversupply.

Second, economic reasons.

Because of the epidemic, many industries are in recession now, and the economy has also been affected to some extent. Many companies cut salaries and lay off employees, both ordinary people and big bosses. In the face of the epidemic, everyone tried their best to keep their one acre and three points. In this environment, many people tend to be conservative. A house has not only the value of living, but also the value of investment. Now most people have no enthusiasm for real estate investment. Everyone feels insecure and the environment is turbulent, so it is better to leave the money in their pockets.

Third, the risk of uncompleted residential flats.

This year, a lot of news about uncompleted residential flats broke out, and many people who bought faster houses were afraid to act rashly. The harm of uncompleted residential flats is so great that ordinary families can't afford it. Everyone will take a wait-and-see attitude when they see the decline in house prices, thinking about whether they will continue to fall if they have already fallen, and whether they will lose money if they buy them.

The state has introduced many policies that are beneficial to real estate, such as reducing down payment, increasing the amount of provident fund loans and reducing property tax, but all of them have little effect. People who just need it always buy it, which is basically not affected by the policy. Real estate is unpredictable, but I still hope it can develop in a good direction.