The supply of existing homes is pretty tight, and home prices are starting to creep up after stabilizing or even dropping.

Sales of existing homes in Shanghai last month tumbled 15.5 percent to 17,800 units, the first drop in four months, Century 21 China Real Estate said in a report last week. The homes were sold at an average price of 17,000 yuan (US$2,681) per square meter, up 3.4 percent from July.

"Recovering home-buying sentiment since May, both in existing and new home markets, has boosted the confidence of individual sellers, who have been reducing discounts or even raising their prices."Six of nine areas in the city, including Tonghe in Baoshan District, Lianyang in the Pudong New Area and Xinzhuang in Minhang District, saw average prices rise by between 5 and 10 percent in August from a month earlier, Century 21 research showed.

A separate report by Shanghai Centaline Property Consultants Ltd showed that the values of existing homes for sale in August gained 1.4 percent from July to 17,470 yuan per square meter, amid a double-digit drop in volume.

"Compared with outlying districts, downtown areas registered particularly sluggish momentum in August, with notable declines in both the number of home-viewing trips as well as inquiries from potential buyers," said Song Huiyong, research director at Shanghai Centaline.Shanghai's existing housing index, which tracks price variations of previously occupied homes in the city, rose 0.8 percent in August from July, after fractional gains in July and June.The city's existing home market will likely remain "stagnant" for another few months, with flat volumes and firm prices, industry analysts predicted.

沪江英语快讯：从国家统计局公布的数据来看，今年前八个月房产开发投资增速出现了止跌迹象，特别是八月份首次出现年内的回升，再加上未来央行货币政策宽松“微调”的预期增强，信贷政策对房价走势将起到决定性作用。因此，楼市走向再次引发高度关注。