Research Of Monetary Policies' Influences On Regional Real Estate Prices

Since the monetization of China's housing distribution in 1998, housing price keeps rising and greatly influences the life quality of the urban citizens, which forms an unstable factor that affects the sustainable and smooth development of national economy. Housing price is now becoming a hot economic issue and social issue and arouses wide concern of the researchers. This article main discuss the influence of monetary policy especially the interest rate, credit and exchange rate on housing price.The article first reviews the past researches on the influence of monetary policy towards housing price. And then it describes the status quo of the housing price both in the country level and in the east, midst and west area. Since the monetization of housing distribution, the real estate market develops fast; all the housing prices keep steady growth, but the price in the east area is obviously higher than that in the midst and west, and is much higher than the national average price. After that, it analyses the influence of monetary policy on housing price in theory and illustrates how the monetary policies affect the housing price through interest rate, credit and exchange rate. Furthermore, it sets up econometrics model on the influence of monetary policies on housing price. The empirical result shows that the influence of interest rate, credit and exchange rate is notably different. The interest rate and the housing price shows a positive correlation; the monetary policies are all effective in the east area while the price in the middle is mainly decided by income per capita; in the west, while income per capita exerts effect on the price, interest rate is another important factor that influencing housing price. The credit's influence is obvious in the east and midst; the exchange rate is mostly effective in the east while it shows influence in the west but it is not quiet obvious and the midst is not sensitive to the exchange rate. Finally, according to the analyses, the article puts forward suggestion on the policies.