Bursting housing bubble of China will rock the economy for years to come

While many economists say China's crippling housing downturn won't get much worse and that the stimulus will kick in this year or next, the reality on the ground for sellers like Echo is much bleaker

The wave of stimulus aimed at reviving China’s housing market -- billions in bank loans, interest rate cuts and support for developers -- has done little to help Echo sell her home near Shanghai.
 

The media worker has received only four nibbles from potential buyers in six months, and is considering a 10% cut to her asking price of 3.3 million yuan ($460,000). She thinks this stagnant housing market, the worst in China’s modern history, will drag on for years.

“Everyone is waiting for a steeper drop in home prices before they make up their mind to buy,” said Echo,