The Study Of Regions Differences About Changes In Interest Rates Impact On House Prices

The sustained development of China's economic needs the real estate industry, and urbanization in China can not develop without real estate. Real estate is called the basic needs of people, the country's basic and fundamental, and it also involves a large number of industries. It has a very significant impact on the national economy. The importance to the national economy from the real estate industry, mainly reflects in the importance of stimulating the economy and stabilize the economy. First of all, from the terms of stimulating the economic, according to statistics the real estate industry directly or indirectly affects the development of more than60industries. Secondly, in terms of stabilizing the economy, because the industry has a high degree of correlation, substantial fluctuations in real estate will affect other related industries to fluctuate and would ultimately cause economic fluctuations. The adjustment and implementation of the monetary policy is inevitable to affect the real estate development. In various industries, the real estate industry is the representatives of the capital-intensive industry, the development and operation of the real estate requires huge sums of money as a backup. For the real estate market, the supply of capital plays a vital role. Therefore, changes in interest rate policy will make the real estate industry having a significant change. However, the real estate market shows a strong regional, although there is a common monetary policy, it has a larger difference in the impact on the different cities of the real estate market. Therefore, this paper analyzes the difference between the impact of changes in interest rates on real estate market prices and the resulting urban.Based on a combination of the domestic and foreign research, this paper focuses on the transmission mechanism of changes in interest rates on real estate market, it; analysis the changes in interest rates impact on house prices and the corresponding urban differences. It selects the four major cities of the central region as samples, select every city's the region's GDP, the housing sales price index, real interest rates and consumer price index as the four main economic variables, in recent years,the use of vector autoregressive model to test the impact of changes in interest rates of these four cities, in recent years vector autoregressive model to test the impact of changes in interest rates of these four cities, housing prices, and a deeper level of interest rate transmission carrier, intermediary, and its surroundings to study changes in interest rates caused by changes in house prices has urban differences and their causes.It can be learned through the empirical analysis:there is a negative correlation between the changes in interest rates and the real estate prices; the strength and depth about interest rates the impact on the house prices have obvious urban differences; the better of the financial environment and the higher of the economically developed areas of housing consumption proportion, the more significant of the impact of interest rates. Finally, according to the results of the study, it corresponds the countermeasures and suggestions.