Real Estate Prediction of House Price in Text of Multivariate Linear Regression

Abstract

During the recent decades, the estate market of China reflects dramatic increasing speed which shocks the whole world. Among various indicators, house price is one of the important indexes reflecting the fast raising price. In this study, the elements which connect to the house price are investigated. To be specific, this paper picks up the typical indexes to construct the model through the Multifactorial linear regression approach. Based on the method, this research discoveries the relationship between the house price with the other related macro-economic index new housing index, citizen wages, resident population, and currency of country. According to the analysis, there is slightly connection between them, and this connection is varying between different cities. While providing the reference to the following research, it also presents that the different development level for Chinese city have the different route to development. Thus, when enterprise or government make the decision or policy, it is necessary to consider its own conditions, not just copy other’s experience. These results shed light on guiding further exploration of the city development.