Story perspectives

Builder Sentiment Plummets Amid Price Cuts and Uncertainty

6/18/2025

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Summary

Builder Sentiment Declines

Builder sentiment fell to 32 in June, marking one of the lowest levels since 2012.
A record 37% of builders reported price cuts, averaging 5% reductions.
Economic uncertainty and high mortgage rates are deterring buyers, slowing price growth.
Forecasts predict a decline in single-family starts for 2025, particularly in the South and West regions.

Summary

China's Housing Market Decline

China's housing market experienced its largest monthly price drop since October, with new-home prices falling 0.22% and used-home prices dropping 0.5% in May.
Residential sales value decreased by 6.1%, and real estate investment fell 12% year-on-year, highlighting market fragility.
Premier Li Qiang announced government intervention to stabilize the market, indicating potential support measures.
Although June showed a slower price decline, low buyer confidence persists, with expectations of further price drops hindering recovery.

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Builder Sentiment Declines

Builder sentiment fell to 32 in June, marking one of the lowest levels since 2012.
A record 37% of builders reported price cuts, averaging 5% reductions.
Economic uncertainty and high mortgage rates are deterring buyers, slowing price growth.
Forecasts predict a decline in single-family starts for 2025, particularly in the South and West regions.

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