The Influencing Factors Of Price Fluctuations For Housing Based On Structural Equation Model

Since1998, with the reform of the housing system, and accompanying by rapidgrowth of national economy, housing price continues rising, high price has been beyondthe purchasing-power for residents, housing has not only became the focus for thepublic,but also attracted government attention. From the perspective of the market, ingeneral, the level of commodity price is decided by supply and demand, rising price hasa close relationship with supply and demand in the real estate market, so factors whichaffect them would affect housing price.Studying on the influencing factors of pricefluctuation is of significance for stabilizing prices and promoting the healthydevelopment in the real estate market.Housing price is determined by supply and demand in the real estate market, pricefluctuations is caused by an imbalance between supply and demand,so the article isused to supply and demand theory to analyze housing price fluctuationsmechanism.Firstly, it elaborates status of supply and demand, price fluctuations in thehousing market through detailed data; Secondly, it qualitatively analyzes the basictheory of price fluctuations、influencing factors and structural equation modeling;Thirdly, it empirically studies influencing factors for price fluctuations by SEM, namelysupply and demand in the housing market is named latent variables, in the same time,drawing on previous research results and its situation can be summed up14measuredvariables,selecting data for nearly15years as a sample, based on modeling、fitting、correcting and verifying the constructing, ultimately it identifies two latent variables,10significant variables, and obtains significantly better SEM, even plays the advantageswhich makes SEM optimize and simplify and makes it more concise and objectiveresearch. Finally, it studies housing price fluctuations for1998to2012year in the housingmarket by the second-order factor model, we can objectively analyze the relationshipamong price fluctuations, supply and demand and10significant variables, and drawsthe primary and secondary factors among them, which contributes us grasp the pricefluctuations mechanism. Therefore, we can drastically work out the principles andpolicies which could effectively curbs rapid growth and promotes its reasonable return.