With the increasing popularity of the internet, people acquire information frequently via internet. Data of searching and trading activities on internet accumulate sharply. These data, although fragmented, record people from search, browse and decision-making process. Traditional analysis of real estate market or policy making rely on statistics published by governments, companies, or academic institutions. Although these data provide some basis information, there are still some restrictions, i.e., limited sample and delayed posting. Data on search engines may complement these flaws. They are extremely timely and cover a great variety of economic activities, providing prompt and accurate forecast for the markets.
This study applies the search engine index provided by Google Trends to explore the relationship between the search engine index and housing markets. Results show that search engine index significantly leads housing prices and transaction volume, indicating that people tend to search and obtain information before entering real estate markets. By understanding the leading effect of “big data” on search engine to the housing markets, we can forecast real estate markets more accurately, and provide more timely implications for governments, enterprises and the public.