A Study on the Influence Factors of Real Estate Prices Based on Econometric Model: A Case of Wuhan

Abstract

Based on Econometric Model, this paper analyzes the factors influencing real estate prices, aiming at grasping the mechanism of real estate price changing and then providing a reference for government policy. According to the statistical data of the real estate in Wuhan from 2000 to 2012, the error correction model of the real estate price is established to analyze the factors. The result shows that the factors influencing real estate prices are diversified and complex, and there exists a long-term equilibrium relationship among the loan interest rates, the population and the price of the commercial buildings. Therefore, in the long run, the price of the commercial building will be supported by the supply and the demand, and the effect of interest rate is relatively more notable.