Research on House Price Prediction Based on Gray Markov Model

Abstract

The paper mainly studies the house price prediction problem. Recently, with the rapid growth of domestic house price, it becomes conducive for the government to issue policy to regulate the house price in a visionary way to select a proper method to predict the price. At the same time, it is also very important to stabilize the domestic real estate market and promote the sound national economic development. The commercial residential housing price has the largest contribution rate among all the housing prices. Although commercial residential house price is featured with fluctuations, it basically shows the increasing tendency. Therefore, according to the existing tendency of the commercial residential house price, the paper uses the gray Markov Model for prediction. Gray GM (1,1)model will well simulate the long-term development tendency of the house price. In addition, Markov Model could remove the fluctuation of the house price data to increase the prediction accuracy.