January 3, 2014
A recent article in Realtor Magazine noted that houses in Canada are overvalued by 60% according to a report from Deutsche Bank. Home prices in Canada when compared to rent are 88% overvalued and 32% overvalued when compared to income levels. Average prices rose 4% in 2013 and are projected to rise 3% in 2014.
The study showed the following overvaluation: Belgium, 56%, New Zealand, 51%, Norway 49%, Australia 40%, France 33%, U.K. 31%, Sweden 24%, Finland 22% and Spain 16%.
Japanese housing is undervalued by 39% and U.S. housing is undervalued by 6%.