Study on Co-relation between Xi'an Residential Housing Price and Macro-economic Variables

Under the background of going up of real estate investment, rising of real estate price and intensifying of demand and supply contradiction in real estate market, based on seasonal statistics of residential housing price and other macro-economic variables of Xi'an city, Vector Auto-regression, co-integration and vector error correction theories are used to analyzed the co-relation between Xi'an residential housing price and macro-economic variables; it is found from positive studies that housing price, real estate investment, savings deposit of urban households, dispensable income per capita of urban citizen and foreign direct investment can form a dynamic system, within which a co-integration relationship existed in long term, in short term, fluctuation existed between variables and the system has capacity to adjusted to the equilibrium position. Based on these results, it is argued that housing price shall not be adjusted as an independent variable, but to be regarded as indispensable components of entire economical system of the said region, so, pertinent measures shall be adopted to control housing price by the local government according to the concrete local conditions.