I usually ignore weekly data, but this data out of Shanghai landed at the top of the headlines today. New home sales (measured by area) plunged 48.7% from the last week of October to the first week of November. Existing home sale transactions plunged 31.8%.
On the optimistic side, home loans in Shanghai are still expensive. On the pessimistic side, inventory in Shanghai has been trending lower.
This news made headlines because only a week or two ago, developers were talking of price increases, if not actually raising prices, confident that the market had turned. If this isn't a one-week phenomena or quirk of the data, pessimism will come roaring back as developers realize they must cut prices again to move inventory.
iFeng: 上海救市成交量反暴跌 明年将现更多刺激?
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