The hottest market in the hottest economy in the world is Chinese real estate. The big question is how vulnerable is this market to a crash.
One red flag is the vast number of vacant homes spread through China, by some estimates up to 64 million vacant homes.
Although it is foreign and surprising to us (it was surprising to me anyway), where the middle class in North America generally carries a mortgage on real estate, the middle class in China do not. You read that correctly, middle class Chinese hold approximately $15 trillion in real estate in China and don`t have mortgages on them.
So what happens to a real estate owner who has no debt when the market crashes? They get a little sad.
