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Home Owners => House Prices and the housing market => Topic started by: Philofacts on July 16, 2011, 12:57:53 pm

Title: World-wide house prices are overvalued
Post by: Philofacts on July 16, 2011, 12:57:53 pm

House prices are overvalued
According to The Economist, house prices in most parts of the world are still overvalued when compared to their historic norms, despite falling prices.
House prices were compared to rents in various countries. Looking at the ratio of prices to rents only three countries look cheap: the US, Japan and Germany.

Germany      12.8%      undervalued  -up     0.9%
Japan          35.8%      undervalued  -down 3.3%
USA           -11.4%      undervalued  -down 5.1%


Hong Kong     63.7%      overvalued     -up     23.9%
Australia        50.1%      overvalued     -down   0.2%
France           48.5%      overvalued     -up       8.7%
Spain            39.2%      overvalued     -down   4.7%
Sweden         35.8%      overvalued     -up       2.1%
Britain         27.8%     overvalued   -down  1.2%
Ireland           22.9%      overvalued    -down  12.2%
Canada          21.2%      overvalued     -up       2.0%
Belgium         20.5%      overvalued     - up      5.5%
Denmark        18.3%      overvalued     -up       2.2%
New Zealand   17.6%      overvalued     -down   1.6%
Singapore       17.3%     overvalued      -up     10.1%
Netherlands    16.9%      overvalued     -down   2.1%
Italy               8.7%       overvalued     -down   1.6%
Switzerland     5/5%       overvalued     -up       4.4%

Title: Re: World-wide house prices are overvalued
Post by: Fred on July 16, 2011, 01:29:58 pm

At least we are not suffering on our own!