Bank Credit And Estate Price Fluctuations

Since1998the comprehensive reform of the housing system start, the real estate marketdevelop rapidly. Especially in2008, in the background of the global financial crisis,China’sreal estate prices rose sharply, so that housing prices become the focus of social concern.Therefore, how to control prices at a reasonable price, keeping long-term stabledevelopment of the real estate market health has become one of the most important issuesof China’s macroeconomic regulation and control.Bank credit, as the important aspect of monetary policy, whether it is the cause of the realestate price fluctuations and tightening credit policy can effectively suppress estate prices?This is one aspect of this study. And high yield of the real estate market has attracted a largenumber of bank credit funds, real estate as collateral or a bank of bank lending assets, itsprice changes affect bank credit exists? This is another aspect of this study.This paper summarizes previous real estate prices and bank credit on the basis of therelationship between research, based on70cities of the panel data,using cointegration testthe panel regression model and an empirical test panel VAR analysis.Taking into accountthe regional characteristics of China’s real estate market, this artic le study the relationshipamong eastern,central and western regions.The empirical results show that(1)In long-term,more significant relationship between real estate prices and bank credit exists in eastern,central,western city;(2)There are significant regional differences of elasticity about bankcredit and prices,the eastern region exists significant structural differences and individualdifferences,and differences in the central city of the smaller;(3) In short term, therelationship between bank credit and the real estate price is not significant. The dynamictest indicated by the PVAR: the differences in the central city between estate price and bankcredit was not significant; The central city of bank credit has a one-way effect on houseprices and influence over time has a tendency to strengthen; there was not a significanteffect relationship between bank credit and the estate price in western region.