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Analysis of Price Fluctuation in China's Real Estate Market Based on Least Squares Method

Author(s)

Shutong Song

Affiliation(s)

Jinan New Channel -JUTES High School, Jinan, China

Abstract

Based on the least squares model, this study conducted an empirical analysis of price fluctuations in China's real estate market and explored the impact of macroeconomic variables and policy factors on real estate prices. Through the analysis of factors such as GDP, residents' disposable income, inflation rate, unemployment rate, interest rate and land supply, the results show that economic growth and the increase in residents' income level have significantly promoted the rise in housing prices, while the increase in inflation rate, unemployment rate and land supply has suppressed the rising trend of housing prices to a certain extent. The model test results show that the constructed model has good robustness, conforms to the structural characteristics of real estate market data, and the analysis results are reliable. Studies have shown that economic growth and the increase in residents' income are important driving forces for house price increases, while reasonable policy regulation and land supply management have a positive effect on controlling house price fluctuations. This study provides a quantitative basis for understanding the causes of price fluctuations in China's real estate market and provides a scientific theoretical reference for the formulation of relevant policies.

Keywords

Real Estate Price; Least Squares Method; Macroeconomic Factors; Policy Regulation; Land Supply

References

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