Abstract: In 2023, as new home sales declined, second-hand home sales rebounded significantly due to ongoing price decreases. Third-party data suggests second-hand home prices may have adjusted to a reasonable level, indicating the price correction is nearly complete.
The new home market's difficulties likely stem from growing delivery risks and insufficient price drops. To stabilize the real estate market and economy swiftly, it's critical to address real estate companies' liquidity issues, mitigate delivery risks, and encourage a thorough price adjustment for new homes to rejuvenate market functionality.
There's a high risk that the further spreading of real estate companies' liquidity issues could introduce many uncertainties in future market developments.
