Introduction

In recent years, housing bubble has become a hot topic as it is an important factor in the financial crisis of 2008. The bursting of the housing bubble in America ruined the economy and financial system, as well as leading to a worldwide downturn. According to the definition of Kindleberger(1987), bubble is a long-term rise in the price of assets for expectation on attracting new buyers to invest for profits. With the rising price far higher than the corresponding actual price, one day the bubble will burst with a sharp drop in assets' price.