On The Regional Differences In The Impact Of The Credit Policy On Housing Prices

Regional differences are to explore the similarities and differences in different regions from the perspective of economy and culture. Real estate industry is a strong regional characteristics industry, whether it is the supply of land, or the effective demand for housing, there is a big regional differences. Therefore, prices in different regions are not the same.Credit policy includes macro-credit policy and guidelines of central bank and micro-credit policy regulations of commercial banks. The former one makes rule for the amount of different regions and industries from the perspective of the macroeconomic situations. The credit scale and requirements of each region were prescribed and regulation; The latter one is the specific credit policy formulation and delivery of the business-related provisions of each commercial bank based on their own development, namely, how to make loans to spread business risk while maximizing economic profit.In this paper, we considered the macro-credit policy and guidelines of central bank and micro-credit policy regulations of commercial banks as well as the economic differences to study regional differen ces in regional credit policy impact on house prices.Firstly, the concept of credit policy are described, and divided into the central macro-credit policy and guidelines of central bank and micro-credit policy regulations of commercial banks. At the same time we described the related concept of regional differences, and divided the 31 provinces and municipalities into three regions, that is to say, eastern, central and western parts. Then, by introducing the history of China's real estate market and the historical evolution of prices in the three regions, we analyzed the function of credit policies to support the development of China's real estate industry. Followed by the the empirical analysis with two panel data fixed effects model, the results show: macro-credit policy and guidelines of central bank and micro-credit policy regulations of commercial banks have played a certain promotion effect on house prices of the three regions, but there is a huge difference in the effect; Disposable income is an important factors for promoting the house prices in all regions; The different level of economic development conditions led to differences in factors affecting prices in different regions as well as the ultimate impact of the credit policy on house price regulation. Finally, we make some corresponding policy recommendations on the basis of the results: First, it is necessary to control the risk of credit crunch east; second, releasing of the Midwest housing just need to deepen the reform of the real estate market; third, balancing the development of the regions to promote the development of the entire real estate industry.