7/20/2015
By Dominique Paul, Research Analyst

During the month of June, China saw housing prices fall 4.9% year-over-year. This is actually an improvement from the previous month where housing prices decreased by 5.7% or April where prices declined by 6.1%. According to reports, the country has seen strong growth in housing starts. Credit Suisse noted that new residential construction is 12% above demand, contributing to the lower prices. Also, 18% of the new houses remain vacant after completion. In order to raise prices, and decrease supply, the homebuilders may move to lower the labor force and decrease production. This would contribute to weaker manufacturing during the quarter.

Dominique Paul
Wall Street Strategies

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