China’s housing downturn has passed a milestone that recent improvements in its largest cities have not erased. The index began at 87.9500 in Q2 2005, meaning inflation-adjusted housing values have now fallen about 3.2% below the series’ initial level. A falling real index means property prices have lost value relative to the broader cost of goods and services, even when the cash price of a home remains higher than it was two decades ago. The real index also should not be described as a continuous measure of every Chinese home. New and existing home prices in China’s four tier-one cities increased 0.1% and 0.3% from May, respectively.