Research On The Influence Of China's Interest Rate Change On Real Estate Price

The real estate industry is the pillar industry of China.The healthy development of real estate market plays a vital role in the sustained and stable development of Chinese economy and the construction of people's livelihood.China's real estate market has the characteristics of capital-intensive,supply lag,consumption duality and regionalism.The change of interest rates will have an impact on both supply and demand sides of the real estate market.Therefore,it has profound theoretical and practical significance to explore the impact mechanism of interest rate changes on real estate market prices in different areas and the influencing factors of.real estate prices in different cities in China.On the basis of summarizing the relevant research at home and abroad,this paper first explains and elaborates the characteristics of the real estate market,then uses the general equilibrium theory to analyze the effects and reasons of interest rates on the real estate market from the perspective of supply and demand of the real estate market,and explores the mechanism of the impact of interest rate changes on the real estate price.Next,this paper elaborates and analyses the development and current situation of China's real estate market.,and carries out empirical analysis in the following chapters according to the development of China's real estate market.In the process of empirical research.,this paper chooses the real estate market of 35 large and medium-sized cities as the research sample,collects the benchmark interest rate of each period as the explanatory variable,the average selling price of real estate as the explanatory variable,and makes the five important economic variables of GDP per capita,money supply,consumer price index of urban residents,per capita savings of residents and land purchase area as the explanatory variable.In order to control the variables,the annual panel data model of the past 16 years and the monthly panel data of the past six years are used to test the response of real estate prices to the changes of interest rates,and the mechanism of the impact of interest rate changes on real estate prices and the reasons for the changes of real estate prices are further compared and analyzed.It is found that interest rates can effectively affect real estate prices in China.The mechanism of interest rate changes on real estate prices is relatively sound.Short-term real estate demand has greater impact on prices than supply.There are significant differences in real estate prices between different cities in China.In view of the conclusions,this paper puts forward some suggestions,such as improving interest rate policy and financial system,perfecting the supply structure of real estate.and adapting measures to local conditions.