“The
Economist tracks the health of housing in 26 markets around the world,
encompassing a population of over 3 billion…The Economist’s housing
index compares the path of house prices against two measures: rents and
income. If house prices rapidly outpace either one, a bubble may be
forming. According to our measure, property is more than 25% overvalued
in seven of the markets we track, notably in Australia, Britain and
Canada…
It is in Australia and Canada, however, where prices seem most
out of kilter. They are 61% overvalued relative to rents in the former,
and 89% in the latter.”
That makes Canadian housing the most over-valued in the world
relative to rents and third behind Australian and Belgium relative to
income. (see table on left)
See,
Global housing markets: property puzzles and also
Over-valued home prices put new owners at risk
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