Analysis of the factors that affect the changes in the places of real estate of mainly large and medium-sized cities in China

In recent years, the prices of real estate in China have continued to move up. In a number of mainly large and medium-sized cities, the prices of real estate have reached as 10 even 20 times as the annual income of families. This phenomenon has aroused widespread concern in the housing consumers. With the Panel Data Model, this article analyses the changes of real estate price index of mainly large and medium-sized cities and the factors which affect the prices of real estate of those cities- credit volume of real estate, the income level of residences, the inflow of foreign capital, the Land prices and the investment volume of real estate from 1996 to 2005 by the quarter in order to predict future changes in the prices of real estate trends. On this theoretical basis, the government can formulate a scientific and rational housing policy and ensure the healthy and orderly development of real estate market.