Housing Price Prediction Model and Impact Factors Analysis

Abstract

Housing price forecast is usually used in macroeconomic regulation, which can effectively avoid the housing price explosion brought by economic growth and promote better housing market control. Considering the rapid growth of housing prices in China in the past decade, the prediction and analysis of housing prices have become a top priority. In this paper, we establish the VAR model to understand the rule of housing prices between different cities and reveal some potential factors affecting housing prices through variance decomposition and impulse response. The results of the experiment show that the factors affecting the change in housing prices are different for different regions, but it is undeniable that housing prices are often affected by the prices of previous years. These results will effectively assess the housing market in these cities and help the government make decisions.