The Relationship Between Bank Credit And Real Estate Development And Housing Price

The reform of housing system was beginning in 1998 in our country. In China, every one dreams to have their houses. The reform of housing system make the housing needs increase and promote the development of real estate and the whole country' economic growth. We analyze the capital source of real estate investment and found that bank credit is the main capital. Bank credit sustains the rapid development of real estate. The real estate developed fast meanwhile the real estate price rising rapidly in recent years. The housing price is too high to afford it for people. Some researchers think the real estate price is becoming bubble.There is some evidence that real estate development and bank credit have close relationship. This paper researches the theories about real estate and bank credit. Based on the theory we analyze the bank credit how to influence the development of real estate by using a descriptive analysis from the perspective of supply and demand. Based on the quarterly data from 2001 to 2007 in Nanjing city, we empirical analyze the relationship between bank credit and real estate price .The result is the housing loan and housing price have positive correlativity and a steady equilibrium relationship in the long run. The result of granger causality test is that bank credit is the granger cause for housing price. In another words, bank credit influence the real estate price in the long run. We sum up the reason of real estate price fluctuation from bank credit perspective. In the last, we put forward proposals to control property housing price using credit activitiesThis paper includes 6 parts. The first part includes the backdrop, research purpose, research meanings, the current research status in and abroad china, research method, technique strategies, creative and limitations about bank credit and real estate.The second part is the theory analysis of bank credit and real estate. It includes finance promotes economic develop, general equilibrium analysis about real estate market and credit market, real estate price fluctuation.The third part is the situation of bank credit and real estate in Nanjing city by using a descriptive analysis.The fourth part is empirical analysis. Based on the quarterly data from 2001 to 2007 in Nanjing city, analyze the relationship between bank credit and real estate priceThe fifth part is the analysis of the reason of real estate price fluctuation from bank credit perspective.The last part is conclusion and proposals.