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First, we emphasize that the real estate price peaks which are currently under way in many industrialized countries (one important exception is Japan) share many of the characteristics of previous historical price peaks. In particular, we…

Physics and Society · Physics 2007-05-23 Bertrand M. Roehner

Excessive house price growth was at the heart of the financial crisis in 2007/08. Since then, many countries have added cooling measures to their regulatory frameworks. It has been found that these measures can indeed control price growth,…

General Finance · Quantitative Finance 2021-08-27 Wolfgang Karl Härdle , Rainer Schulz , Taojun Sie

We analyze 27 house price indexes of Las Vegas from Jun. 1983 to Mar. 2005, corresponding to 27 different zip codes. These analyses confirm the existence of a real-estate bubble, defined as a price acceleration faster than exponential,…

General Finance · Quantitative Finance 2008-12-10 Wei-Xing Zhou , Didier Sornette

We document a well-developed log-periodic power-law antibubble in China's stock market, which started in August 2001. We argue that the current stock market antibubble is sustained by a contemporary active unsustainable real-estate bubble…

Statistical Mechanics · Physics 2008-12-02 W. -X. Zhou , D. Sornette

Twenty-two significant bubbles followed by large crashes or by severe corrections in the Argentinian, Brazilian, Chilean, Mexican, Peruvian, Venezuelan, Hong-Kong, Indonesian, Korean, Malaysian, Philippine and Thai stock markets indices are…

Condensed Matter · Physics 2007-05-23 Anders Johansen , Didier Sornette

We analyse, following recent work of Roehner, changes in house prices for both the UK and Ireland. We conclude that prices in London have reached a tipping point and prices relative to inflation are set to fall over the next few years. If…

Physics and Society · Physics 2009-11-11 Peter Richmond

By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding of investors and traders and (iii) the mathematical and statistical physics of bifurcations and phase transitions, the…

Statistical Finance · Quantitative Finance 2010-07-08 Zhi-Qiang Jiang , Wei-Xing Zhou , Didier Sornette , Ryan Woodard , Ken Bastiaensen , Peter Cauwels

In the aftermath of the burst of the ``new economy'' bubble in 2000, the Federal Reserve aggressively reduced short-term rates yields in less than two years from 6.5% to 1.25% in an attempt to coax forth a stronger recovery of the US…

Physics and Society · Physics 2008-12-02 W. -X. Zhou , D. Sornette

We analyze the French housing market prices in the period 1970-2022, with high-resolution data from 2018 to 2022. The spatial correlation of the observed price field exhibits logarithmic decay characteristic of the two-dimensional random…

Statistical Mechanics · Physics 2025-03-28 Antoine-Cyrus Becharat , Michael Benzaquen , Jean-Philippe Bouchaud

Since ancient times, what Chinese people have been pursuing is very simple, which is nothing more than "to live and work happily, to eat and dress comfortable". Today, more than 40 years after the reform and opening, people have basically…

Machine Learning · Computer Science 2022-04-21 Yuying Wu , Youshan Zhang

The latest global financial tsunami and its follow-up global economic recession has uncovered the crucial impact of housing markets on financial and economic systems. The Chinese stock market experienced a markedly fall during the global…

Statistical Finance · Quantitative Finance 2015-10-16 Hao Meng , Wen-Jie Xie , Wei-Xing Zhou

We have analyzed the risks of possible development of bubbles in the Swiss residential real estate market. The data employed in this work has been collected by comparis.ch, and carefully cleaned from duplicate records through a procedure…

General Finance · Quantitative Finance 2013-03-20 Diego Ardila , Peter Cauwels , Dorsa Sanadgol , Didier Sornette

The aim of this paper is to compare statistical properties of a bubble period with those of the anti-bubble period in stock markets. We investigate the statistical properties of daily data for the Nikkei 225 index in the 28-year period from…

Statistical Mechanics · Physics 2015-06-24 Taisei Kaizoji

In this paper, we use the house price data ranging from January 2004 to October 2016 to predict the average house price of November and December in 2016 for each district in Beijing, Shanghai, Guangzhou and Shenzhen. We apply Autoregressive…

Machine Learning · Computer Science 2017-09-26 Xiaochen Chen , Lai Wei , Jiaxin Xu

We analyze how equilibrium housing prices are determined in the process of economic development within an overlapping generations model with perfect housing and rental markets. We characterize the rent growth rate in all equilibria. The…

Theoretical Economics · Economics 2025-05-09 Tomohiro Hirano , Alexis Akira Toda

Amid the current financial crisis, there has been one equity index beating all others: the Shanghai Composite. Our analysis of this main Chinese equity index shows clear signatures of a bubble build up and we go on to predict its most…

Statistical Finance · Quantitative Finance 2009-07-13 K. Bastiaensen , P. Cauwels , D. Sornette , R. Woodard , W. -X. Zhou

The monthly air traffic of a city is a time series with an obvious seasonal pattern, and is closely related to the economic situation and social environment of the city. In Hong Kong, for example, July, August, and October tend to be the…

Applications · Statistics 2021-08-13 Shuwen Chai

In recent years, real estate industry has captured government and public attention around the world. The factors influencing the prices of real estate are diversified and complex. However, due to the limitations and one-sidedness of their…

Applications · Statistics 2018-02-23 Yiyang Gu

There is a growing concern in recent years over the potential formation of bubbles in the Chinese real estate market. This paper aims to conduct a series of bubble diagnostic analysis over nine representative Chinese cities from two…

Risk Management · Quantitative Finance 2018-01-12 Tianhao Zhi , Zhongfei Li , Zhiqiang Jiang , Lijian Wei , Didier Sornette

Four episodes of black rainstorms, the highest tier of heavy rain according to the rainstorm warning system in Hong Kong, occurred within eight days from 29 July to 5 August 2025, breaking the record for torrential rain in the territory.…

Atmospheric and Oceanic Physics · Physics 2025-08-13 P. W. Chan , Y. T. Kwok
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