| Real estate provides essential place of production and life, and it plays an important role in improving people’s living standards, developing economic and adjusting industrial structure. If real estate which is an important industry of the national economy, developed in a stable way, the economy of this country could be stable.Real estate is a capital-intensive industry. So the support of bank credit influenced the prices of real estate. The real estate and bank credit both have influence in the national economy and the life of people. This article is based on the importance and links of real estate and bank credit, answering three questions:what is the relationship between the real estate bank credit and price of real estate, how deep the impact of them, and in which way they influenced. Therefore, these answers provide a basis of decision-making for government, developers, financiers and consumers.This paper firstly describes the price volatility of real estate and its impact. Secondly, it describes the theory of Real Estate Economic which is both domestic and foreign, and introduces the theory of real estate price wave and real estate credit, price volatility in real estate in our country and the influence of real estate bubble burst. Then have a research on interaction between real estate price volatility and bank credit on real estate, getting three conclusions:First, there’s long-term stable equilibrium relationship between them. The second is that one lag of real estate prices and real estate credit has more affect on real estate prices. The third one is that real estate credit is Granger cause of real estate prices. But real estate prices are not Granger cause of real estate credit. Then it analyze the way of the bank credit impacted the real estate credit. Finally, based on the conclusion, we can give the suggestion against the real estate bubble bust:control the quantity of bank credit for real estate and adjust the structure of bank credit for real estate, what’s more, it gives strict censor on bank credit for real estate and introduce counter-real estate cyclical policy on real estate credit. |
