Is Canada really among the 12 most overpriced housing markets in the world??

Posted on 02. Nov, 2010 by in News

Gregory White, Business Insider, November 1st 2010

The U.S. housing market may have crashed, but bubbles around the world keep blowing.

Prices in some of the world’s major real estate markets continue to be inflated by real reasons, like scarcity, and by less savory realities, like easy credit and speculation.

The Economist has broken down which markets are most over-inflated, by comparing rental prices to sale prices of properties.

This reflects what the cash flow is on a potential investment property versus the underlying asset value. If you don’t get much cash out of the rental, the property purchase makes less and less sense.

Beyond the rent to price ratio, we’ve included some detail on each market than may explain why it’s due for a correction, continued growth, or is a bubble ready to pop.

Click here to read the full article and to view the markets making up the top 12  Р

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