Real Estate Bubble Research

Since the reform of Chinese housing regime in 1998, the real estate industry has also experienced a decade of development. And these years, the rapid development of real estate industry has made great contributions to China's economic growth, and expanded consumption items. Behind such prosperity there exists potential risks. At present, the growth margin of real estate investment and the house price are too high to reach for housing buyers in part of our country. With the development of economic globalization, especially under the backgrounds of the financial crisis caused by the united state in 2008, and also with the RMB increasing continuously, some foreign hot money has flowed into the property market. Whether there is a real estate bubble in the hot property market, different person has different opinions. The development of real estate market is related with the development of the financial sector and service sectors, as well as the development of the steel industry, especially the financial industry. Under the background of the single traditional financing channel in our country, the financial sector seems to be the largest money provider to real estate industry.Whether there is a real estate bubble concerns the healthy development of our country economy. Starting from the property bubble definitions and based on the research summary of the foam theories out and inside of our country, this article established an econometrical model to detect the foam in Tianjin real estate market. Considering the influence of housing prices to residents living, we also made a detect of the consumer price index and the price index, only to find out that the housing development of real estate market in Tianjin on the normal way but a little hot, and the price consumption index really did a influence on the consumer price index. From above research and according to the early warning range, we have proposed appropriate recommendations.