Abstract: This paper employs the data of the  real estate market price index,CPI and PPI,and take the measurement of co-integration test and causality test to examine the relationship between the real estate market price and overall Price level from 1998 to 2007 in china.It discovers that there is a long-term equilibrium between real estate market price and overall Price level in china,But this kind of relationship is unidirectional.It is real estate market price is a Granger reason to overall Price level,but overall Price level is not Granger reason to real estate market price.It shows that real estate has departed from the cost fixed price rule.

Key words: real estate market price, overall Price level, Causality relationship