Grey System Application in Real Estate Price Forecasting

The real estate system is influenced by many factors from both the macroscopic field and the microscopic field.Therefore,forecasting the real estate price is difficult.This paper uses the grey system theory to establish a grey forecasting model.Finally,the principle of the grey system is presented and the GM(1,1) model is established based on the statistics of the real estate price in Jiangsu province from 2001-2006.The result shows the feasibility and the validity of the method.