Economic Analysis on the Pattern and Price Change of Real Estate Market in China

The paper divides the real estate market into two patterns.One is investment(or speculation) oriented and the other is consumption oriented.In the former pattern,the demand curve of real estate market is a right upward sloping line,while the demand curve is a right downward sloping one in the latter pattern.The real estate market switches between these two patterns according to the budget constraints of the consumers.The switching of the market from the investment(or speculation) to the consumption is a process in which the real estate bubble bursts and its price goes down sharply,and financial crisis easily breaks out.