Beijing Existing Home Sales Slump in April; 87% of Listings Cut Prices; Owners Regret Not Selling Sooner

From the article, it's unclear if the 87% figure accounts for the delisting phenomena (see: Report: Beijing Homeowners Told By Real Estate Agents: Cut Your Price or Be Delisted; 30% of Online Listings Show Price Cuts) and based on the prior news I'm assuming it does not. The article states that the biggest price reduction was 2.2% in April.

This anecdote stands out because it is indicative of a shift in psychology that accompanies a declining market.

Before the Spring Festival, Li Jing listed her home for sale. "When listing, my expectations is for 2.4 million, but I listed at 2.6 million, if I can sell it for a higher price, then I'll sell it for a higher price. The owners above me listed at 2.65 million." Jing said that from Spring Festival to Ching Ming Festival [Early April] she felt the market is still in good shape. A buyer offered 2.4 million; she did not agree.

But she did not expect the market to slowdown after Ching Ming Festival. Buyers were either just looking around or making unreasonable offers. Until May 6, when she finally met a pair of reasonable buyers, the negotiated price was 2.28 million. "I feel regret, at Ching Ming I could have sold for 2.4 million." Jing said.

二手房降价蔓延：4月份北京87%房源挂牌价下调

Which lasted five months, Li Jing (pseudonym) has finally sold her house, but eventually traded her initial bid to reduce the 320,000 full listing price. And with the other owners and Jing BAN listed the same period, due to the market downturn, has decided "not to sell."

Lower prices in the property market is expected to continue to strengthen in the background, watching the emotions rise, some buyers choose to delay the market, prices fell to, changes in the property market to a buyer's market. Central monitoring data show that in April the total turnover of six key cities secondary residential reduced approximately 10% compared to March, lower market activity makes the price pressures.

Beijing Central Plains real estate statistics show that the first week of May, Beijing second-hand housing transaction prices also continued signs of adjustment before April, second-hand housing prices adjust gradually accelerate. Centaline analyst Zhang Dawei said, "volume has fallen for three months, in respect of the price of natural loose. Affected more because of second-hand housing, such as the tightening of credit, so in response to the first round of market adjustment."

87% of owners of second-hand housing price

Jing's house is located outside the North Fifth Ring Beiyuan area, an area of ​​48 square meters bay. Recent five months, Li Jing felt the obvious changes in the market.

Before the Spring Festival, Li Jing to the house to hang out. "Initially listing, psychological expectations reserve price is 2.4 million, but hung up 2.6 million listing price, want to be able to sell another job selling high. Owners me upstairs hanging 2,650,000 it." Jing said that during the Spring Festival to the Ching Ming Festival She also feels the market state, there were 2.4 million buyers want to buy, she did not agree.

But I did not expect, after the Ching Ming Festival, the market becomes more sluggish. View room buyers either "rambling look," or is "do not fly to bargain." Until May 6, she finally hit a pair of "fly" buyers, the price is negotiated 2280000. "Mental somewhat regret, the festival will be able to sell 2.4 million." Jing said.

Because lots of listings Jing still good, and belongs to the school district room, sold relatively easy. And another recent hang out Tongzhou two suites of second-hand housing owners Zhao Jie (pseudonym) feel more market chill. Within two weeks, only one suite had a client once seen, and there is no intention to buy.

Tongzhou a second-hand housing intermediary told 21st Century Business Herald reporter, most buyers are waiting to see if you want to sell within 1-1 half months, must be reduced to the market price.

Reporters in the chain home online access to data discovery, Zhao Jie district where the second-hand housing since February 12 no longer traded on a property.

Chain of home real estate analyst Zhang Xu said that "generally speaking, suburban area in the second-hand housing transaction price declined slightly, while the owners of second-hand housing the central city listing price is no longer as before, frequently linked to high prices, but began a gradual decline."

Chill markets become more evident in the period May. According to the chain of home real estate market research statistics, in 2014 the holiday (5.1-5.3), Beijing second-hand housing net label was only 31 sets, and last year fell by 82 percent, the lowest in nearly six years. In addition, second-hand housing in Beijing in April 7616 the total volume is only set for the past 11 months (excluding New Year month) lowest level since.

From the chain of home real estate price index monitored to see that since January, Beijing second-hand housing listing price continued to fall. Among them, the biggest cut in April, 2.2%, accounting for the gradual expansion of the price listings. April, 87 percent of the listings are on the listing price has been reduced.

According to data provided by Century 21 Real Estate in Beijing toward the green area, basically have listings currently listed -50 10,000 350,000 price range, even though the owners have taken the initiative to price, and very few transactions, buyers are still said to wait and see . From the city's point of view, listing price and a 10% decline in the actual transaction is a more common phenomenon.

The market will continue to decrease

Property buyers psychology has always been to "buy or not to buy." In the second-hand housing market, the price gradually spread in the background, more and more buyers hesitated.

According to Century 21 Real Estate stores visited the survey found that many customers just need to show a darker sidelines, new and existing homes volume of cold, so they are more afraid of the market. Consumers wait, which in turn increased the deadlock property transactions. Over the past few years show that if the property market continued to rise, buyers will with impunity, "buy", fearing that housing prices kept rising, too late even suffer; And when the property market into the sidelines, prices have come down slightly, buyers will miss the best time to buy, that prices will continue to decline.

Chain of family property also observed changes in tourists from new housing situation, during the May average daily volume and new listings three days before the holiday essentially flat compared to the level, the amount of tourists also did not show significant recovery in some areas source volume is also a certain degree of decline, the market deserted state continues.

Chain of home real estate market research Zhang Xu believes the holiday period from the second-hand housing market situation, buyers are waiting to see the depth of emotion not have any improvement. At present, most buyers believe that prices could decline further in the future as well, which is the main cause of the depth of the property needs to wait and see. In addition, owner-occupied housing in succession on the second-hand housing market is also the source of the market psychology had no small influence, some just need has therefore been diverted. Whether it is in the current market level from the policy level or background have not yet appeared in any positive signal, May distinct possibility that the property market is very small warmed expected spontaneous round of market adjustment will continue for some time.

Sang Yu Feng, director of the real estate market in the 21st Century Development Center, from the national situation, the property market is relatively strong first-tier cities than the second and third tier cities, big price cuts phenomenon has not yet appeared, but the mood of buyers expect lower prices relatively strong, market sentiment imminent. Vice president of a nationally known housing prices pessimistic view of the future trends in the real estate market, spread through the network, the impact is very large. Very few cities cautiously relax the restriction measures, failed to reverse the whole situation in the property market continued to adjust downward.

Central Plains and the Central Plains quote Managers Index Index also showed that second-hand housing transaction price has declined for two consecutive months, respectively, reflecting the store managers and owners are not optimistic about the market outlook, the current two leading index are entering a critical period, from historical data Look, falling house prices is a high probability event, expected in May, six cities, or second-hand housing prices will increase, the decline will be expanded.

Sang Yu Feng said that macroeconomic yet to bottom out, real estate continued tight credit, real estate prices in some cities, wait and see mood spread, which is a combination of factors resulted in several real estate transactions this year, weak reasons. The trend in the second quarter will determine the annual performance of the property market to a large extent, the present situation, in May performance is not encouraging.