Credit markets and house price volatility

The role of credit on house prices is analyzed. as a capital-intensive basic industry, real estate loans account for a higher proportion of bank loans, and supply and demand are affected by credit to a large extent.Further, based on the 2010-2017 provincial panel data Granger causal test, empirical results found that credit is the Granger cause of house price fluctuations, significantly affecting the fluctuation of house prices.Accordingly, the real estate industry risk warning and evaluation system should be established, to pay attention to the real estate industry market risk.