Research on the Influence of Monetary Policy on the Price Index of Second-hand Housing

Abstract

This article aims to study the relationship between monetary policy and the listed price index of second-hand housing. Monetary policy uses M2 to quantify the scale of currency circulation. After research, the author found that first-tier cities, second-tier cities, third-tier cities, and the national real estate price index have the same trend with the money supply, and the same volatility turning point. First-tier cities, second-tier cities, third-tier cities, and the national house price index vary with the money supply changes, which are mainly reflected in the slope of the house price index and the money supply under the stable value of the house price index or the simple trend line. The slope of the first-tier cities is the same as that of the whole country but different in the stable value of housing prices. It can be seen that the housing prices of the first-tier cities and the country are similar in terms of rising prices, but the housing prices of the first-tier cities are higher than the national housing prices. Although the stable value of the second-tier cities is the same as the national housing price index, the second-tier cities are rising faster, and the slope is higher than the slope of the national housing price and money supply. Therefore, it can be found that the second-tier cities are more affected by the money supply. The money supply has a greater impact on the house price index. Compared with the whole country, the third-tier cities are lower in both indicators than the whole country. Therefore, it can be seen that the housing prices in the third-tier cities are less impacted by the money supply. The overall research innovation of this article lies in: according to the level of the city, it is divided into different calibers to study the relationship between the housing prices of different levels of cities and M2.