Abstract: This paper explores the most effective factors of housing price swings in recent years in Mainland China. According to the fundamental model of real estate market dynamics, housing prices together with 6 other ratios and figures were used. The sample covered 8 years from 2003 to 2009 and 31 administrative areas in Mainland China. Housing prices are considered as dependent variable, while income per capita, land prices, mortgage rates, density of population, unemployment rates, and savings are measured as independent variables. Multiple regression analysis was used for the investigation. To locate the fittest factors, both Panel Fixed Effect Model and Ordinary Least Square Model Newey-West HAC Modification were applied. The results of models indicated that the most effective factors affecting the housing prices are income per capita, land prices, and mortgage rates.