(Bloomberg) -- China’s home prices fell the most in seven years in October, underscoring the depths of the downturn that prompted policy makers to bail out the sector. 

New-home prices in 70 cities, excluding state-subsidized housing, slid 0.37% last month from September, a 14th straight decline, National Bureau of Statistics figures showed Wednesday. The existing-home market fared worse, dropping 0.47%, the steepest since 2014. 

The figures gave a reality check to investors, with Chinese developer shares snapping three days of gains in the wake of authorities’ moves to shore up the industry. 

The real estate slump is one of the main drags on the world’s second-largest economy, as cash-strapped builders shrink investments and households hoard savings. Falling residential prices are doing little to improve homebuyer sentiment, which is seen as seen as key to stemming a more than year-long drop in sales and reviving the industry. 

“The home market improvement was weaker than expected in October, and we haven’t seen evidence of a turnaround so far this month,” Chen Wenjing, associate research director at China Index Holdings, said before the figures were published. “It takes time for buyers to step out from wait-and-see mode.” 

Home sales dropped 23% last month from a year earlier, deepening from a 16% decline in the previous month, according to Bloomberg calculations based on official data released Tuesday. Property investment also worsened, slumping 16%. 

In the past week, officials have taken clear steps to try to reduce the economic burden of Covid restrictions and to rescue the property market, in a strong sign that the government is turning its attention toward shoring up the economy. 

Regulators last Friday issued a 16-point plan including allowing developers to extend bank loans and trust borrowings, Bloomberg reported. On Monday, “quality” property developers were allowed greater access to money homebuyers pay in advance for new homes. 

Builders are capitalizing on a rally in their shares following the policy shift, with Country Garden Holdings Co. and Agile Group Holdings Ltd. announcing capital raising plans. A Bloomberg Intelligence gauge of Chinese developer shares fell 8% on Wednesday, paring this month’s jump to 48%. 

(Updates with shares in third and last paragraphs)

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