Blowing bubbles? Chinese home prices rise at fastest rate in two years

http://atimes.com/2016/03/blowing-bubbles-chinese-home-prices-rise-at-fastest-rate-in-two-years/



Blowing bubbles? Chinese home prices rise at fastest rate in two years
By Asia Unhedged on March 18, 2016

February saw Chinese home prices surge to their fastest rate in two years, leaving many observers fearing the market could be entering a bubble.

Average new home prices in 70 major cities climbed 3.6% year over year in February, topping January’s 2.5% rise, according to Reuters calculations based on data released by the National Statistics Bureau (NBS) on Friday.

It was the fastest growth rate since June 2014, with 32 of 70 major cities posting price gains, up from 25 in January.

~snip~

However, the market seems to be experiencing a dramatic bifurcation. Big cities are seeing home prices surge, while small cities with a supply glut experience a weakness that threatens to put more stress on the slowing economy. Continued stimulus to grow the economy could result in inflating an asset bubble.

--

If this is a Chinese bubble and it collapses I will lose another shitload of money from my 401K. Capitalism sucks.