"While prices will continue to fall on a year-on-year basis, you can see some signs of stabilizing on a sequential basis, " said Kris Li, a property analyst from Shenyin Wanguo Research and Consulting.

WSJ: China Housing Market Shows Signs of Warming

Just about everyone agrees with Ni Jun of Shenyin Wanguo Securities in Shanghai that nonperforming loans will rock bank earnings sometime during the middle of next year, even if the economy hits bottom this quarter, as many predict.

FORBES: China's Enrons