Abstract: The most cost of real estate prices is produced in the process of the development and construction of the house,but housing price volatility is influenced by many factors.In recent years,with the growing amount of total GDP and the per capita disposable income,the rapid expansion of urban population,China’s real estate market has developed rapidly,the housing price is up all the way.This paper investigates the relationship between housing price and various economic factors.Based on the annual data 2000-2014average price of China＇s real estate and the main economic factors GDP,the urban residents living disposable income,more than 5 years lending rate,money supply M1and the exchange rate against the U.S.dollar,this paper establishes a vector autoregression(VAR)model and modifies through a variety of statistical analysis.According to the modified ECM model,we get a conclusion:the housing price can economically function back to ROE in the long term. The short-term America subprime crisis could make the housing price play apositive influence on the ROE.

Key words: Housing Price Volatility, Economic Factors, Exchange Rate Against the U.S.Dollar,  , ECM Model