China’s Monetary Policy Affects The Real Estate Price Mechanism

"12th Five-Year Plan" than adhere to protect and improve people’s livelihood as the fundamental starting point and final goal to accelerate the transformation of economic development. Housing problems effect the people’s livelihood and economic problems, even the social stability. Housing prices rise too fast, increasing the difficulty of the residents through the market to solve the housing problem and increasing the financial risk, is not conducive to economic and social development. In this context, China’s monetary policy affects real estate price mechanism is particularly important.There are many ways of monetary policy affects real estate prices, but the way in interest rates and money supply by the two most important. Through these two channels in the role of the real estate market supply and demand sides of the power of influence prices. By using the VAR model, select the relevant data of September2004to2011, the way of monetary policy through interest rate channels and the money supply affect the real estate supply and demand empirical analysis. The empirical results show that:the money supply have a greater impact on real estate investments, interest rates on real estate investment time lay. Demand for real estate is more sensitive to interest rates, money supply is poor。In the adjustment of the supply of real estate, one to digest the high stock of currency is the interest rate and exchange rate regime reform, promote the management of currency differential, the fourth, to strengthen the central bank’s financial position, the fifth is the development of capital markets and guide the diversion that to focus on real estate prices. And make a reasonable reflection of In the regulation of real estate needs, a financial institution lending rate guide, preferential policies to increase low-income persons, the second is to guide the rational market expectations.