The housing price adjustment period may begin in the second half of the year

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This post was last edited by a senior novice in design on 2016-7-14 at 10:21. The domestic real estate market began to quiet down in June this year. Although occasional \"land kings\" do appear, such sporadic occurrences are also beginning to fade away from the market. Since April this year, both the area and value of housing sales across the country have been showing month-on-month declines. By June, the sales area of commercial housing in 30 large and medium-sized cities continued to decline, falling by another 8 percentage points compared to May. According to May’s data, not only has the growth in transaction volume slowed down, but growth in housing starts, housing investment, and land sales has also slowed. Real estate developers are not optimistic about the real estate market in the second half of the year; housing sales are likely to remain sluggish again. 　　On July 6, the \"Mid-Year Report on China’s Housing Market 2016\" released by the Chinese Academy of Social Sciences predicted that from the second half of 2016 to the first half of 2017, the housing market might enter a period of short-term adjustment. Market differentiation will shift from \"a few hot cities and many cold cities\" to an even greater polarization, as the stimulus effect of monetary policy on the real estate sector is weakening. This situation arises because housing prices in popular cities are too high, leaving the average people unable to enter the market at all. 　　Moreover, high housing prices have turned \"destocking the real estate market\" into a complete fallacy. Faced with huge profits in the market, real estate developers will not leave; on the contrary, they will flood in in large numbers, hoping to seize the last opportunity. Over the years, it has been almost impossible for certain functional departments in ** to make sound judgments and formulate appropriate policies regarding the real estate market, in order to ensure its steady and healthy development. For example, housing purchase restrictions have pushed China’s real estate market down a path from which it finds it difficult to escape, and the same is true of the Chinese real estate market this year. 　　At the same time, the domestic employment situation indicates that housing prices will fall in the future. According to a report on China’s employment market released recently by the international consulting firm KPMG, since early 2013, employment opportunities in the real estate sector have followed a similar trend to that of the real estate market over a period of 6 months ； Job opportunities, on the other hand, are forward-looking, reaching their peak or bottom about 6 months before housing prices do. The peak in new job opportunities in China’s real estate industry has passed, said Erik Haines, head of the Data and Analysis team at CBRE: \"If this trend continues, the recent decline in new job opportunities may indicate that housing prices in China will start to fall.\" ”This moment is likely to have arrived already.