With Vector Error Correction Model, impulse response analysis and variance decomposition, this paper analyzes the finance factors that cause the prompt rise of house price in China.

Some parameters chain may deviate from the expectancy value or average in the supply chain, such as demand, price, cost, and so on, and then there is a variance risk.

In this paper we use the variance decomposition of the vector error correction model(VECM) to perfectly and detailedly show the relationship between the housing price and the land price.