{"id":6055,"date":"2015-02-27T06:52:53","date_gmt":"2015-02-27T11:52:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6055"},"modified":"2015-02-27T06:52:53","modified_gmt":"2015-02-27T11:52:53","slug":"housing-crash-in-china-steeper-than-in-pre-lehman-america","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6055","title":{"rendered":"Housing Crash in China Steeper than in Pre-Lehman America"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/02\/26\/housing-crash-in-china-steeper-than-in-pre-lehman-america\/\" target=\"_blank\">Housing Crash in China Steeper than in Pre-Lehman America<\/a><\/h3>\n<p>China has long frustrated the hard-landing watchers \u2013 or any-landing watchers, for that matter \u2013 who\u2019ve diligently put two and two together and rationally expected to be right. They see the supply glut in housing, after years of malinvestment. They see that unoccupied homes are considered a highly leveraged investment that speculators own like others own stocks, whose prices soar forever, as if by state mandate, but that regular people can\u2019t afford to live in.<\/p>\n<p>Hard-landing watchers know this can\u2019t go on forever. Given that housing adds 15% to China\u2019s GDP, when this housing bubble pops, the hard-landing watchers will\u00a0<em>finally<\/em>\u00a0be right.<\/p>\n<p>Home-price inflation in China peaked 13 months ago. Since then, it has been a tough slog.<\/p>\n<p>Earlier this month, the housing news from China\u2019s National Bureau of Statistics gave observers the willies once again. New home prices in January had dropped in 69 of 70 cities by an average of 5.1% from prior year, the largest drop in the new data series going back to 2011, and beating the prior record, December\u2019s year-over-year decline of 4.3%. It was the fifth month in a row of annual home price declines, and the ninth month in a row of monthly declines, the longest series on record.<\/p>\n<p>Even in prime cities like Beijing and Shanghai, home prices dropped at an accelerating rate from December, 3.2% and 4.2% respectively.<\/p>\n<p>For second-hand residential buildings, house prices fell in 67 of 70 cities over the past 12 months, topped by Mudanjiang, where they plunged nearly 14%.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing Crash in China Steeper than in Pre-Lehman America China has long frustrated the hard-landing watchers \u2013 or any-landing watchers, for that matter \u2013 who\u2019ve diligently put two and two together and rationally expected to be right. They see the supply glut in housing, after years of malinvestment. They see that unoccupied homes are considered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2045,130,3809,2340,426,3389],"class_list":["post-6055","post","type-post","status-publish","format-standard","hentry","category-economics","tag-beijing","tag-china","tag-housing-crash","tag-housing-market","tag-inflation","tag-shanghai"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6055"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6055\/revisions"}],"predecessor-version":[{"id":6056,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6055\/revisions\/6056"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}