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Canada’s housing market has been showing signs of cooling lately, but according to the Economist it is still the most overheated in the world.

Overvaluation in Canada comes in at a whopping 78%, by the Economist‘s price-to-rents ratio, the weekly newspaper said in its survey on the global housing market. At the other end of the scale is Japan with an undervaluation of 37%. The Economist writes:

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“Overvaluation is especially marked in Canada, particularly with respect to rents (78%) but also in relation to income (34%). Mark Carney, the country’s central-bank governor, who is soon to jump ship to join the Bank of England, where he takes over from Sir Mervyn King in July, may have shown good market timing with his move to London as well as a deft hand in negotiating his lavish remuneration. Singapore and Hong Kong also look vulnerable to a correction, given the overvaluation on their price-to-rents ratios.”

To be fair, it was Carney’s warnings and Ottawa’s move to tighten mortgage rules this past July that has touched the brakes on the nation’s heated housing market.

Reports out Wednesday showed that home price gains in December were the lowestin three years. Meanwhile,home sales in the Greater Toronto Area have plummeted 50% from the year before.

Vancouver, however, still ranks as the second least affordable major city in the world after Hong Kong when it comes to buying a house, according to an international survey this week.

At $621,300, the median home price in the city is 9.5 times the gross annual median household income, according to the report by U.S.-based consulting firm Demographia. That’s down slightly from a median multiple of 10.6 in 2011, but still places Vancouver in the ‘severely unaffordable’ category.