World housing prices still overvalued

October 25, 2010 at 7:34 pm

The Economist has surveyed housing prices from several countries and has come to some surprising results. According to the survey, Spanish house prices are the most overvalued in Europe, 47.6%.

The Economist’s analysis is based on comparing the current ratio of house prices to rents with its long-run average.

” Europe shows a familiar split between core countries and peripheral ones. Ireland, Spain and Italy continue to suffer year-on-year price declines; German and French homes have shown big gains in value over the past year, a particular turnaround for France since our previous round-up. The British housing sector’s talent for defying gravity may be on the wane. The pace of annual appreciation in the country’s property market has slowed over the summer. British housing is still overvalued—outright falls may loom.”

Let’s talk percentages. After Spain, France is situated among the economies with overvalued house prices, namely 42.5%., Below, are the United Kingdom (32%), Canada (23.9 %), China (18.1%) and Italy (10.5%). Even in Japan, Germany and United States home value is below the perfectly priced -34.6% a -12.9% and -2.1%.

The financial weekly discusses the evolution of prices, naming some countries that have experienced decline, namely Italy, Spain, Japan and the biggest decline was in Ireland (17%).





Entry filed under: Housing, Kinos, News, Real estate. Tags: house prices, overvalued, real estate, report, survey, the economist.