Overview
- Official data show new-home prices fell 0.4% from December and 3.1% from a year earlier, the steepest annual drop in seven months.
- Price weakness was widespread, with 62 of 70 surveyed cities posting monthly declines, up from 58 in the prior month.
- Resale prices stayed under pressure year over year, with tier-one cities down 7.6% and smaller cities registering declines exceeding 6%.
- State media reported regulators removed the “three red lines” caps on developer leverage, yet funding strains and heavy debts persist.
- Continued housing losses are weighing on household wealth, consumption and financial stability, keeping the sector a drag on growth.