Design of the early-warning index system for Xi'an real estate market

Establishing a warning index system of real estate market (WISRM) to assist local government making decision is an arduous and valuable task, especially which can show market situation timely, concisely and comprehensively. Based on investigating history data during 1996-2006, the WISRM for Xi'an city is built up by combining principal component analysis with time-difference correlation analysis, which consists of 17 indicators sorted by time difference correlation. The SPSS software is used to carry out statistic analysis. The result is accord with the practical condition of Xi'an city well, and is able to fully reflect the states of real estate market.