LONDON—Homes in Canada are 63 per cent overvalued and the level reaches about 50 per cent in Australia and Norway, Deutsche Bank AG said in a report Thursday.

Homes in Wollongong, a seaside city in the Australian state of New South Wales, are more expensive than in New York when the median house price is compared to the median household income, economists Torsten Slok, Matthew Luzzetti and Peter Hooper wrote in the report. The report compares home values to their historic multiples of rent and household income.

Central bankers have been using financial policy to reduce the risk of house-price bubbles in countries including the U.K., Hong Kong and Singapore. Restrictive policies reduce credit growth and price gains by 1 per cent annually, Goldman Sachs Group Inc. economist Hui Shan estimated last year.

Home values in the U.S. are about 5 per cent below their historical average based on the measurement, the Deutsche Bank report said. In the U.K., where the government has encouraged low down payments on mortgages, they’re 38 per cent overvalued.

Values in Canada are 35 per cent higher compared with income than the historical average and 91 per cent higher compared with average rentals. Prices in Belgium are 51 per cent higher than the average relative to income.