China Real Estate Market Could See 30% Price Drop

Chinese house buyers visit a property fair in Beijing on June 25, 2010.
Chinese house buyers visit a property fair in Beijing on June 25, 2010.

Whether one considers China's housing market as "on the brink of collapse" or in the midst of a "healthy correction," all eyes are on what was until recently one of the more stable, and growing, global economies.

The fears are based on China's housing bubble, which is not unlike the bubble the U.S. and other countries experienced in the past two years.

What makes all this so scary for the U.S. is the concern that if China's growth slows, then their demand for U.S. goods will drop. Already, a drop in construction means less demand for steel, oil and other commodities.