Research of Real Estate Price in the Situation of Inefficient Market

摘要

As having a research on the real estate market, we always base on the Efficient Marketing Hypothesis (EMH), especially in the real estate market. That is because of its long production cycle, high value of products, and its supply lagged far behind others, researchers realize that real estate problems can not be applied to method—Efficient Market Hypothesis, which is commonly used in financial market research. Traditional theories that focus on the real estate market volatility or fluctuations are based on strict mathematic deduction and rational, which means that they pay more attention to the predictability of the real estate market fluctuations. In fact, in actual real estate capital market, EMH model seems to be too ideal. After analyzing the efficient marketing hypothesis model, this thesis points out the disadvantage in the practical application of EMH model and problems encountered during the research. We also analyzed the factors affecting the real estate prices and the relationships among them. Basing on the analysis above, we give a real estate price model in inefficient market and have the variables validation tested.