The Empirical Study On Discrepancy Of Real Estate Price Determinant Factors Among China And Foreign Countries

In this paper, we used three main methods the unit root test, EG two-step method (Engle and Granger,1987) and the OLS regression analysis method to analysis quarterly data for the years 2004-2013 in the United States and monthly data for years 2005-2013 in China. It was found that the factors affecting the U.S. real estate prices are the disposable income, GDP, unemployment and interest rates, among which GDP, interest rates and disposable income have positive effect on real estate prices, while unemployment rate has negative effect. The changes of main macroeconomic indicators have made a good explanation of real estate prices, which shows the close relation between the U.S. real estate market and macroeconomic; the exchange rate, disposable income, unemployment and consumer price index are factors that mainly affect Chinese real estate prices, among which disposable income and consumer price index have positive effect on the real estate prices, while the RMB exchange rate has negative effect. In addition, the influence of urban population on real estate price movements is not significant in both U.S. and China’s real estate markets. We also find that the impact of changes in interest rates on Chinese real estate prices is not significant.