Behavior Of Market Participants And Its Impact On Real Estate Prices

Real estate is one of the important carriers of asset price bubble, and the collapse of housing bubble will cause great damage to finance and economy systems. In recent years, housing market has been one of the focuses of academe. Many academicians tried to explain price increasing and housing bubble in our country's real asset market. But most of the literatures analyzed Chinese housing market only from the viewpoints of bubbling up and its collapse, neglecting the basic commodity property of real estate, and failed to fully distinguish different players in the market.Beginning with the economic axiom that goods prices are determined by their supply and demand, this paper emphasizes the particularity of real estate, deems it as consumable and investment asset simultaneously, and subdivides housing market players. According to basic analytics framework of economics, this paper constructs a simple market equilibrium model and tries to explain the factors affecting housing price fluctuation.In this paper, housing market players are subdivided into demanders, suppliers and related beneficiaries, whose behavior characteristics and impacts on the variation of housing price are analyzed felicitously. Firstly, the paper divides housing market demand into consumption demand and investment demand, and considers that excess investment in the market is the key reason for the increasing of housing price. Secondly, the paper emphasizes the difference between the powerful housing firms and the small and medium ones, and as well their different reactions to the government's regulation policies. Thirdly, related beneficiaries, such as governments, commercial banks, and the realtor companies, play important roles in the real estate market. Based on their behavior characteristics, the paper points further out that local governments' searching for short-term achievements,...