Based on the analysis of dwelling real estate market characteristics，a dynamic game model is built to describe the path of the operation of dwelling real estate market in China，and we also prove that a perfect Markov equilibrium exists and we can draw the interesting conclusions as follows：first，in the monopoly market，the housing price will be the spiral path up from up to steady to up again till down to steady to rise again，second，the amplitude and the cycle of housing price fluctuation is determined by the width and depth of the market participating. Based on the theory analysis，we accordingly propose the policy measures on the marco-regulatory of dwelling real estate market in China.