This paper sets up a VAR(1) model by collecting the quarterly data on China's macroeconomic and real estate industry. By means of Granger Casualty Test, impulse response function and variance decomposition, the paper studies the impact of macroeconomic variables on real estate variables. The conclusions are as follows: changes in the macroeconomic system have a significant impact on the investment in the real estate development investment and the domestic lending; and the fluctuations of housing price, to some extent, are short of the support of macroeconomic fundamentals and effective demands.
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