China can also look forward to a faster work down of excess housing inventories. Many Chinese have already begun to take advantage of now reduced mortgage rates, especially discounts of 15% for first-time homebuyers. But more fundamentally, there are 11 million marriages a year in China, and some 10 million to 12 million people a year migrate from the countryside into China's cities. Major cities already report increased transactions, and price erosion seems to have stopped. Chinese government statistics on home prices in 100 cities show an end to price erosion and even a modest rise for some months now.
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