Core Insights - The Chinese second-hand housing market is experiencing unprecedented changes, with a significant increase in listings and a continuous decline in average prices over the past 25 months [1][3]. Group 1: Market Trends - The average price of second-hand residential properties in 100 cities has dropped to 14,870 yuan per square meter as of May 2024, marking a sustained decline [1]. - Major cities such as Chengdu, Chongqing, and Wuhan have seen listings exceed 200,000 units, with Hangzhou reaching 210,000 and Shanghai at 180,000 [1]. Group 2: Factors Driving Change - The long-term upward trend in housing prices since the 1998 reform has created a significant "bubble," leading to a rush among early investors to liquidate their assets as the market shifts [3]. - Policy relaxations in many cities have removed previous restrictions on purchases and sales, facilitating a surge in listings as investors take advantage of the new environment [4]. - The reduction in mortgage rates has prompted homeowners to refinance, leading to increased supply in the second-hand market as they sell their existing properties to take advantage of lower rates [5]. - A decline in purchasing demand, influenced by the economic impact of the COVID-19 pandemic and a shift towards more rational consumer behavior, has resulted in a surplus of listings without corresponding buyer interest [6].