I think it is inconceivable to think that we (government) can prop up the housing market as a long term strategy. The shadow inventory being kept off the market is helping keep the prices artificially high, as well govt incentives to create demand. This is unsustainable and needs to be stopped.
The Asia model uses three primary mechanisms to ensure households pay for investment. First, wage growth is constrained to a level well below the growth in worker productivity, forcing workers to subsidize employers. Second, the exchange rate is undervalued. This reduces the real value of wages by raising import costs, while subsidizing manufacturers in the tradable goods sector.
Third—and most powerfully—is financial repression. Most savings in these countries are in the form of bank deposits, and the banks are controlled by the monetary authorities who determine the direction of credit, socialize the risks, and set lending and deposit rates.
China’s National Economic Research Institute translated into English. It's an outlook from the Chinese perspective of the balance of trade between them & America.