Abstract:Based on an analysis of the economic situation and an econometric model,this paper predicts that China’s real estate price in 2010 will remain stable,the investment and supply will keep fast growth,and the demand will turn to increase steadily.The market will maintain its prosperity.The main reasons are:macroscopic policy encouraging the real estate to develop healthily;the wish and ability for purchasing houses still supporting rigid demand;inflation expected to stimulate short-term demand;land supply system restricting marketing supply;the upstream products rising price conducting to the real estate market;and new trend of urbanization promoting the development of the real estate,etc.Finally,some suggestions on policy are proposed in this paper for the construction of the real estate system,regulating and controlling policy,restricting speculation,and new challenge for urbanization.