Back then, Japan's housing prices plummeted and went through four terrifying stages.

Japan has experienced a period of significant decline in housing prices, which can be divided into four stages. These waves of decline have dealt a heavy blow to many middle-class families in Japan, with many people transitioning from prosperity to poverty.

It took them nearly 20 years to gradually recover.

Firstly, new housing prices have begun to decline, making it difficult for real estate companies to sustain themselves and forcing them to lower housing prices to raise funds.

At the same time, due to the significant difference between the price of second-hand houses and the purchase price, landlords are unwilling to lose money and have to sell at a lower price, resulting in a phenomenon of oversupply in the second-hand housing market.

This stage can be called the initial shock period of the real estate market, and many people began to realize the vulnerability of the real estate foam.

Secondly, with the deterioration of the economic situation, houses that cannot repay loans are reclaimed by banks and become foreclosed properties.

In order to recover funds, banks can only significantly lower prices through auctions, further exacerbating the decline in housing prices.

At this stage, the real estate market has fallen into a deeper quagmire, and many previously stable families have also been caught up in it, unable to escape.

Subsequently, many second-hand housing landlords realized that there was no hope for improvement in the market, and even at a loss, they wanted to sell as soon as possible, resulting in a large number of sell-offs in the second-hand housing market.

This situation leads to oversupply in the market and further decline in housing prices, forming a vicious cycle.

Finally, in 1992, Japan introduced the Property Tax Act, which means that even if a house is rented out, property fees and taxes still need to be paid, making the property a negative asset.

Therefore, people are lowering prices and selling off excess properties in the hope of reducing the burden. At this stage, many families have to make difficult decisions and give up the property they have struggled with for many years.

This is the four waves of price reductions experienced by the Japanese real estate market back then.

This economic storm not only destroyed the dreams of many families, but also had a profound impact on the entire Japanese society.

However, from this crisis, the Japanese people have also learned valuable lessons, worked hard to rebuild the real estate market, gradually emerged from difficulties, and achieved steady economic recovery.