A Study On Related Economic Factors Of The Real Estate Price In Taipei City

Because there is no early warning system in the variance of housing price, people would like to buy or sell houses by their own judgement.The result of disequilibrium in housing market is caused by people's arbitrary judgement.The purpose of this study tries to find the key factors in economic information in order to make the government establish appropriate policies to stabilize the housing price and to satisfy people's needs.It has a significant meaning to stabilize macro-economic situation of society.The study concludes six economic factors which would have important influences on housing price,including the pre-period housing price,consumer price index,GNP,money supply,stock price index and interest rate.The study uses regression model to find the influent level of every economic variable on housing price and catch up the following conclusions:firstly, the consumer price index has negative relationship and level of significant with housing price,and it reveals that people's anticipate psychology has a very important impact on housing price;secondly,although the pre-period housing price, stock price index,interest rate and GNP have no level of significant,the trend of these variables match the statistical description in this study.Therefore,the study concludes some key economic variables which have important influences on Taipei housing price and helps the government use some financial or monetary tools to establish the policies which can stabilize the housing price.