Fed Up Canadian
The real estate market of China, the largest in the world, is on the brink of collapse as enthusiasm from Chinese home buyers plummets drastically.
China’s real estate market was already in a state of decline in early 2023, but it experienced a short-lived rebound as the Chinese Communist Party ordered local government units to issue policies bailing out real estate companies. By the end of April, the mortgage rate for first-time home buyers in more than 40 major cities had dropped to below four percent, thanks to government intervention. However, this optimistic outlook failed to live up to analysts’ expectations by April. (Related: Home prices DECLINE in 31% of the US, mostly in Democrat-controlled cities where crime and high taxation are rampant.)
According to a financial statistics report for April released by China’s central bank, mortgages decreased by 241.1 billion yuan ($34.1 billion) that month. Among those, medium- and long-term household loans decreased by 115.6 billion yuan ($16.3 billion,) while short-term mortgages decreased by 125.5 billion yuan ($17.7 billion).
