Linkages Effect Of Fluctuation In Housing Price Index Of Chinese Cities

Chinese real estate plays an important role in the development of the national economy. The healthy and stable of real estate market is not only an industry question, in fact, high prices contains a huge financial as well as social risks. Concerned about the housing price fluctuations, the most important thing is not to concern about the price itself, but the fairness of the real estate market system, the reasonable market structure, the long-term healthy development. Consequently, it's important and imperative to research linkages effect of fluctuation in housing price index of Chinese cities.This paper studies the linkage mechanism of real estate price of cities deeply and systematically. On this basis, the method of subdominant ultra-metric space is introduced in order to study the correlation features of the fluctuations of real estate price of cities. The traditional parameter analysis method would bring the diversity of results in analysis. A time scale up to several years of relevant statistics is introduced, which is to study the dynamic stability of real estate market by sub-regional, analysis of the dynamic evolution of the occurrence of the relevant market information.Via month data from sample of Housing Sales Price Index, result of demonstration is finding:(1) There is more significant clustering effect in the real estate price of cities after the outbreak of Financial Crisis. (2) The central node cities of China are from the second and third line cities to front-line cities. The influence of front-line cities is stronger. (3) The dynamic stability of the real estate market of Chinese cities is relatively stable overall, but the stability is weakened since the 4th quarter of 2007 significantly, especially the eastern region. (4) April 2010 introduced a series of regulatory policies, which have led to the lower degree of real estate market order.It is concluded that there is significant clustering effect and strong correlation in the real estate price of cities. Central node cities have ripple effects on other cities, thus affecting the dynamic stability of the whole market. To some extent, these conclusions are to fill the only point blank. Increase the concern of front-line and strong second-line. Construct the harmonious society of "Home Ownership".