According to the evolution of global excess liquidity and the changes in the real estate cycle，we find there is close relationship between liquidity and real estate price.In the latest cycle of real estate，excess liquidity led to the rise of property prices in the world to some extent.With the normalization of global liquidity，the global real estate market will face the risk of re-pricing.U.S.Subprime mortgage crisis has accelerated the burst of the real estate bubble and extended the period of real estate market slump.U.S.real estate market is not likely to recovery in 2008.As the United States real estate market cooled down，Euro Area real estate market is also facing a serious infectious risk.Spain and Ireland are most likely to face with adjustment.The Spanish real estate market is likely to enter the downturn in 2008.The fall of real estate prices will bring adverse macroeconomic shocks，but it is still not enough pose a substantial threat to the banking system and financial stability.