Since the housing reform in 1998, there has been a boom in buying houses in China, and countless people have invested all their belongings in the house, resulting in 70% of the assets of the domestic people in real estate, far more than the United States, it is reported that only 28% of the assets in the United States are currently in the house.
Therefore, mainland urban families can not withstand the collapse of housing prices, just as Qiu Baoxing, former vice minister of the Ministry of Housing and Urban-Rural Development, talked about housing prices: if housing prices plummet, many people will become "losers", so in recent years, the regulation and control policies have been emphasizing the stabilization of the property market, stable housing prices, in fact, the stability of the overall situation.
So, if housing prices really plummet, what impact will it have on all sectors of society? Qiu Baoxing, former vice minister of the Ministry of Housing and Urban-Rural Development, also expressed his views on this issue.
.01
Will house prices really plummet?
The general public does not know much about the real estate industry, and can only focus on the current sales situation and housing prices, and cannot draw an accurate conclusion about the future development trend of real estate.
In the opinion of industry insiders, if housing prices plummet in the later period, the mainland people will face heavy debts.
Looking at the world, the real estate market in many countries has experienced huge fluctuations, and many developed countries, including the United States and Canada, have experienced a decline in the real estate market.
This proves that the real estate market is sluggish, which is a global phenomenon.
Under such a general trend, the mainland market is likely to be disrupted, so in order to prevent a sharp fall, in recent years, the relevant departments have introduced various measures, such as reducing the down payment ratio, reducing the loan interest rate, relaxing the purchase and loan restrictions, and increasing the amount of provident fund loans.
In order to keep the real estate market stable as a whole, last year, a total of seven or eight hundred incentive measures were introduced across the country, with the aim of keeping the supply and demand of the real estate market in a relatively balanced state.
.02
The impact of the collapse in house prices
If one day in the future, there is really a large-scale decline in housing prices, it will inevitably have a huge impact on all sectors of society.
1. The "catastrophe" of home buyers
For those who bought a house in full, the original 1 million house is now only 500,000 left, and the wealth has shrunk, the assets have depreciated, and they are facing huge losses.
For most families who take out loans to buy houses, it may be equivalent to a catastrophe, they still have loans that have not been repaid, but the house has already faced depreciation, and the market value may be lower than the remaining loans.
Moreover, once the value of the house depreciates too much, many people may even start to cut off the mortgage after weighing the cost. If one or two people cut off the supply, in fact, it will not have much impact, but if the volume of the supply interruption is too large, and the phenomenon of mortgage defaults is increasing, the bank will become the last person to carry it out, and in the end, if the bank cannot completely solve the problem, it will directly affect the mainland's financial system.
2. Three generations of hope dashed
Many families may have emptied the wallets of three generations in order to buy a home. This means that the hopes of three generations are pinned on this house. In this case, they naturally hope that the house can continue to appreciate, and if the family suddenly needs funds in the later stage, they can also sell the house and get a lot of money.
Even if the price of the house cannot rise, at least it should be kept at a stable level, once the price of the house falls, the people will definitely collapse, after all, this is the work of three generations, and the decline in housing prices is equal to the shrinkage of the family's assets.
3. The industry has been greatly impacted
In the past, real estate as the backbone of the mainland economy for many years, once it has a recession, many industries will be greatly impacted, such as building materials, decoration, furniture and appliances, hardware, paint, intermediaries, etc., these industries have to rely on real estate to continue to develop, once the industry has a rapid downturn, and is a continuous depression, it is conceivable that these involved industries will enter a kind of depression.
To put it bluntly, the industries you think can't be beaten by eight poles actually rely on real estate, so once housing prices plummet, many industries will stagnate. At that time, a large number of enterprises will go bankrupt and countless people will lose their jobs.
Some people say that after the collapse of housing prices, ordinary people can afford to buy a house, isn't this a good thing? In fact, this truth is understood, but after all, there are too many industries tied to real estate, and the tail has been formed.
In short, at present, the relevant departments prefer that housing prices can remain stable, and a sharp decline and rise will have a negative impact.
Wan Ziwen said: Every word of the article was typed out by me, and I clicked "watching" to let me know that you are also "doing your best" for life.
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