Research on the Impact of Market Sentiment on the Second-Hand Housing Market

Market sentiment is an important factor affecting real estate market transactions. In the face of irrational fluctuations in China’s real estate market, “Expectation Stabilization” is regarded as one of the important policy goals of real estate regulation. This paper takes Chongqing as an example to make an in-depth analysis of the impact of market sentiment on the second-hand housing market. Firstly, obtain the corpus of Chongqing real estate industry information from 2019 to 2021 based on the Sina public opinion platform, analyze the sentiment tendency of the corpus and construct the market sentiment index accordingly. Secondly, establish the VAR model of the second-hand housing market by adding variables such as real estate development investment and M2 money supply. Finally, make an empirical research on the impact of market sentiment on Chongqing’s second-hand housing market. The results show that market sentiment has a significant impact on the second-hand housing market in the short term, and there is a hysteresis. Faced with the impact of market sentiment, the response of second-hand housing transaction area is more significant than second-hand housing sales price.