Take a look at china if anyone thinks that the US housing bubble was bad.
According to Standard & Poor’s the Official Chinese data shows real estate prices in 70 cities climbing 12.8 percent in April, an unsustainable rise for the country.
A typical 970-square-foot apartment in Beijing cost $278,160 in 2009, 111 times the average household annual income in the city of $2,514. In comparison, the average U.S. home sold for $316,800 in 2007, 5.4 times the median household income of $58,480.
Li Daokui, a member of China’s Central bank monetary policy committee, told the Financial Times that the housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the U.S. and U.K. before the financial crisis