The Study On The Confidence Index Of The Chinese Real Estate Market

As an important pillar of the national economy, and an industry that the livelihood issues are closely related, Chinese real estate industry has been widely concerned.In recent years, the price of the real estate is increasing very fast and that creats huge bubble. Since last year, the domestic economy is facing downward pressure and excess capacity. will the price of the real estate market be able to maintain stability? This paper studies basic factors of the real estate price in the previous, then focuses on the real estate market confidence index that supports the the market trend, trying to build confidence index model to forecast the trend of the real estate market. On the thoeretical basis of the existing research, we select nine factors to construct factor analysis model measuring confidence index and drawing the real estate confidence index chart for 10 years. Through the correlation analysis of the confidence index trend and the real estate market price, we conclude that the proposed real estate market confidence index can predict the real estate market price to some extent, which provides a reference for the establishment of a sound monitoring of real estate price index system.