BREAKING: New-home prices in China fell -2.4% YoY in November, marking a severe acceleration in declines. Secondary home prices plunged across all city tiers, with first-tier cities recording a -5.8% YoY drop, while second-tier and third-tier cities fell -5.6% and -5.8%, respectively. China’s real estate market has been in a downturn since mid-2021. As a result, home sales by floor area are now -50% below 2021 levels, an unprecedented value destruction. The IMF estimates that China may need to spend ~5% of GDP to resolve the crisis in 3 years. China’s 2008 moment is now.(The Kobeissi Letter)