Research on Market Sentiment and Housing Price Fluctuation from the Perspective of Behavioral Finance

Pengbo Yang, Nan Zhang

Abstract: Academics focus on economic subjects? bounded rationality behavior owning to the 'rational man' hypothesis in traditional economics. Methodology in behavioral research helps in explaining a number of modern economic phenomena and thus research on market sentiment has been a hot topic in the economics field. From the perspective of behavioral economics, this paper builds the theoretical model of the effects of real estate sentiment on housing price fluctuation and explains the typical behaviors in the housing market, and discusses the mechanism of the impact of market sentiment on commercial housing price fluctuation.

Keywords: Market Sentiment, Behavioral Economics, Commodity Housing Market