Response Of Real Estate Market To Monetary Policy

In 1998,with the continuous advancement of China’s housing reform process,the marketization degree of real estate increased rapidly,accompanied by rising housing sales prices.However,the excessive rise in housing prices is likely to cause problems such as the imbalance of social wealth distribution and the excessive precipitation of social resources in the housing market.Therefore,the real estate market is also a persistent concern of our country:taking monetary policy as an example,although China’s monetary policy does not targete real estate market,but the housing market is still one of the most important concerns of our countries’ monetary policy.Therefore,how monetary policy transmit in the real estate market and whether the transmission effects of monetary policy in different regions are the same;whether monetary policy can suppress housing prices and balance the supply and demand of the real estate market as the market pays attention is the main concern of this paper.In order to achieve the above objectives,this paper uses monthly data from 30 provincial administrative units from January 2001 to December 2015 to analyze various monetar)y policy forms and real estate through the Global Vector Auto-Regression Model.The dynamic response of the market focuses on the regional heterogeneity of the transmission effect of monetary policy in different place.My research indicates:(1)China’s monetary policy can impact real estate investment and real estate sales price greatly;(2)The response of different regions to the same monetary policy is quite different.Specifically,the currency supply has a greater impact on the eastern region,whilethe impact on the central region and the northeast region is relatively small;the impact of-interest rate policy on each region is not statistically significant,but economically,it impacts eastern real estate market greatest,basically with expectations.Consistent,but relatively small impact on other regions:commercial bank loan balance has a significant impact on the real estate market in various regions,especially for the western region and the northeast regionTherefore,in the process of real estate regulation,government should formulate relevant policies according to the economic,cultural and social characteristics of each region to avoid the "one size fits all" regulation policy in real estate market.