This study aims at exploring whether pre-sales housing prices in Taiwan can be affected by the changes in the interest rate and business cycle. By using the data from 2000Q1 to 2020Q2. First of all, we use unit root test and Johansen cointegration test to determine the stationarity and cointegration of the time series variables respectively, results show that all variables exist unit root and have two cointegrating vectors. So the research should establish Vector Error Correction Model(VECM) to examine whether the Housing prices can be affected by the changes in the interest rate and business cycle. The results show that interest rate and business cycle with two-period lag have significant effect on housing prices in VECM model. Interest rate has negative effect on housing prices and business cycle has positive effect on housing prices.