The Effect Of Price Fluctuation Of Real Estate On Household Consumption

The relationship of consumption relative to house prices has aroused widespride attention in the academic world.Under the background of rising prices in the real estate market,meanwhile the consumption decrease by degrees,The inference of how China's real estate market prices influence the consumption is analyzed,the research of this topic have the great significance to construction of the real estate market and boost consumption,at the same time this topic can provide the reference for China's macro economic policy system.With the transformation of China's real estate market,China's real estate market is developing rapidly,and the real estate industry has developed into a very important industry in China's national economy.The constant rising of the house price makes the residents face the problem of buying a house.It has an important influence on the economic life of the residents.In recent years,the real estate price of our country has been growing.The corresponding volume of real estate has been declining.Therefore,the future trend of housing price is uncertain.It is very important to study the impact of housing price rise on residents'consumption.From an economic view,the important factor that affects the consumption represents the value of all the wealth they have during their lifetime.The wealth of residents has a positive effects on the consumption of residents.The purchase of real estate expenditure has become a relatively heavy consumption expenditure for Chinese residents,so the proportion of real estate in personal assets is relatively high.The price fluctuations of total wealth influence consumer prices,on the other hand,residents preparing for future purchase by increase current savings,thereby reducing their consumption.In fact,the change of house prices affects residents' consumption through a variety of ways,so the impact of the rising price of house prices on the consumption of residents needs to be studied.This paper studies the impact of housing price rise on residents'consumption,and empirically studies whether the rise of housing price has a significant impact on residents' consumption,specifically whether wealth effect or crowding out effect.Based on the life cycle theory,permanent income theory as the theoretical basis of the study,the time span of statistical data is from the first quarter of 2005 to the fourth quarter of 2015,then establish VAR model.Using pulse response function and variance decomposition method in order to analyze China's housing prices will affect the residents' consumption,and also consider the other the influence factors of residents' consumption,empirical conclusion shows housing price affects our prices on consumption.The empirical analysis shows that the increase of real estate price will lead to the increase of the consumption level of the residents,and the increase of income is the main reason for the increase of residents' consumption level.The income level of residents and the increase of deposit interest rate can promote the consumption level of residents,but the effect of deposit rate is not obvious..Finally,the empirical results are explained in combination with the national conditions of China,and some reference suggestions are made to the relevant policy makers.