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Academy of Social Sciences Revealed Two Signals, Whether or Not to Buy a House is Clear

Post time: 2018-05-27 19:32:09    Source: Translated from news.fang.com

As for the overall situation of the property market, it has been said for many times, and this signal is becoming more and more obvious. In the view of Change or Die (a media), it is concluded that there are no more than two aspects of the market regulation and control, one is to crack down on the real estate speculation, the other is to let the property market return to attribution of living and to meet the demand of people’s housing.
 
For the market itself, there is no more concern than two aspects, one is whether the pillar status of the real estate still exists, that is, whether the big real estate cycle is over, and the other is where the house price will go?

Academy of Social Sciences recently gave an answer. The monthly analysis report on the development of China's housing market on May 25, 2018, published by Institute of Finance and Strategy and City and Competitiveness Research Center of Chinese Academy of Social Sciences, is expected that the housing market will be gradually retreated with the decline of the financial leverage and policy support, and the number of cities whose house prices are going to decrease or becoming stable will increase. Funds will be gradually transferred to the rental market and the rental market is going to have a big development.

This also means that Academy of Social Sciences has analyzed the future development of real estate market from two levels, one is long-term and the other is short-term. In the long run, under the new position that the house is used for living not for speculation, the housing system of multi-agent supply, multi-channel guarantee, rent and purchase, which also represents the positive structural changes in Chinese property market. Our thinking and logic can no longer be immersed in the thinking of the rapid development of real estate in the past. New thinking should be renewed. But at the same time, we also need to know that under the overall situation of stabilizing real estate market, the market will not rise and fall obviously, maintaining stability is our bottom line.
 
While the financing difficulties of the commodity housing market are increasing, the state's financial support for the rental market is strengthening. The state has proposed to speed up the cultivation and development of housing rental market, especially long-term lease, support the development of specialized and institutionalized Housing leasing enterprises, and encourage the issuance of housing lease asset securitized products. That is to say, the great era of relying on commercial housing to solve the housing problem is past.

On short terms, the big data house price index of Academy of Social Sciences shows that in addition to some hot spots, housing prices in most cities are falling faster than the rate of increase on a month on month basis. In the cities whose house prices are falling, most of them are Beijing, Tianjin and Hebei plate cities. In April, in the 141 sample cities, there are 109 cities whose house prices increase are lower than 1%, and the rest 32 cities whose house prices decreased slightly. This shows that the current cycle of housing price recovery has ended.
 
Would the callback of housing price cause a problem on real estate? Moody's Investors Service expressed on May 25, it is the same as a year ago, the real estate market is still the pillar of the Chinese economy, it mainly affects the downstream industries of the supply chain, such as cement, steel etc.
 
This also shows that the house prices can’t rise with vast scale, of course, can’t fall with wider band. This is in the expectation of the media of Change or Die. It was not my prediction, but the signal that the state released. Just as mentioned before that the house price is destined not to increase and not to decrease under the overall situation of the real estate stability. But in the short term, this is the general trend, the big time of real estate speculation is over.
 
If you can afford to buy, you can buy, if you can’t afford to buy, there is no need for you to rush to buy it. There has never been anything which is fitted for you to buy a house, when the house is used to live, to buy or not to buy a house it depends on whether you have such a demand, no one has never been able to give you an exact guidance, because only you know yourself the most.

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