| Price is the nuclear mechanism of market economy, which affects production, circulation, distribution and consumption in society. House price is a weatherglass of house market. After a careful study of related overseas documents and an empirical analysis of the house price, The paper infers the main dynamical factors which influence house price from both the theoretical and empirical angles. At first based on Marxist land rent Theory and used the methods of the Western-Economics, the paper infers the house price formation process and influence factors of house price formation. Based on the above theoretical study, an empirical analysis of the dynamical factors influencing China's urban house price, has been made, it includes the following five aspects: political factors, economic factors, policy factors, social factors and natural factors. The paper analyzes specific factors including house demand and house supply, for example, family income and financing influence house price formation process. Finally, it infers index on urban house price formation mechanism. Used empirical analysis, the paper analyzes house market data of the whole country .In the paper, the view put forward has provided new angle of view and new thought.
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