After nearly 20 years of rapid development, China′s real estate prices have shown a downward trend, the myth that the real estate market will not fall has come to an end, even the real estate in first-tier cities, which is believed to have huge demand and will not fall did not resist this impact. Why China′s real estate can thrive for such a long time, why the bubble deflates in recent years, where the future of China′s real estate industry will go, I will try to answer these questions in this article. This paper will combine literature review with mathematical model, try to analyze the reasons behind this economic phenomenon and predict the future trend of China′s real estate market.