Analysis Of The Affecting Factors Of The Real Estate Price

The real estate industry has become an important pillar industry of China. The impact of it over economy has very important effect. But in recent years, the real estate price rose rapidly. In some cities, the house price went up sharply; its rate far exceeded the increasing rate of the overall economy and the increasing rate of goods or service price in other industries. The too-quickly rising trend of house price not only extremely influences city dweller's living conditions but also is an unstable element for the macroeconomics' smooth and sustained development. At the same time, the problem of house price has become an economic as well as a social problem that has aroused universal concerns.This paper starts from the related theories of real estate, primarily analyzes the affecting factors of house price. It is based on econometric and statistic theories and applies practical analysis methods to the research. First, it analyzes the influence of econometric factors of house price. First, by analyzing various economic factors that affect the real estate price, I find out that changes in GDP and interest rate have great influence on real estate price. Comparing the impact of changes in GDP and interest rate and changes in price level over the real estate price, I find out that the former one affects the real estate price more than the latter one does. Taking Tianjin real estate market as an example, I analyze how policy factors affect the price level of real estate. According to the above empirical study, I forecast the trend of real estate market development and provide suggestions that are used to stabilize real estate price level.