The Causes of the real estate bubbleIn recent years, China's real estate market-than-expected growth, making real estate development deviated from the normal development track, the real estate bubble began to appear. In this paper, the premises causes a bubble market prices as the research object, the domestic real estate prices in recent years, the observation data obtained my real estate price bubble has formed the facts. On this basis, the combined analysis of the theory of economics, specifically the use of supply and demand model and study the elasticity theory and the real estate bubble burst mechanism. Finally, a brief analysis of the recent real estate prices in China to curb the excessive rise in the policy issued. Keywords: real estate bubble; the market mechanism; supply and demand model; land; land supply;