Study On Influencing Factors of Real Estate Price Fluctuation from The Perspective of Behavioral Economics

Abstract

Due to the dual attributes of investment attribute and consumption attribute of real estate, its price volatility is more complex than that of ordinary investment goods and consumer goods. It has always been the object of close attention of real estate market researchers, policy makers, investors and people who have the need to buy a house. Starting from the theory of behavioral economics, this paper analyzes the impact of investors' behavior difference on housing price fluctuation in the real estate market. This paper selects the monthly data of Nanjing, Suzhou, Changzhou and Wuxi from 2011 to 2020 and uses the heterogeneity expectation model for empirical analysis. The results show that, different from super first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, fundamental investors have the power to restore the housing price to the benchmark housing price, while trend investors will not push the housing price further offset. The fluctuation of housing prices are more dependent on fundamental investors.