The 2008 US housing market crash stands as one of the worst collapses in economic history — and its lessons remain relevant as China deals with its own real estate crisis.
Beijing is facing a narrow policy path toward an economic rebound this year, and the International Monetary Fund has warned that the country is in the midst of a historic property downturn matched only by the most severe collapses of the last three decades.
In a February 12 note, Goldman Sachs analysts warned that once a housing market deteriorates, it takes a long time to bottom — a lesson that was illustrated in the US subprime mortgage catastrophe.
“We estimate that real house prices in China declined 16% from the peak in 2021Q3 to 2023Q3,” Goldman analysts said. “If the US experience is of any guidance, we are only halfway through the downward price adjustment in the current housing downturn
www.businessinsider.com/us-china-economy-housing-market-2008-bust-crash-real-estate-2024-2
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