A recent report from Deutsche Bank analyzed the housing markets of twenty developed countries, and ranked Canada as having the most overvalued housing market of the group. See the CBC News story here: Canadian real estate most overvalued in world, study says
According to the study, the most overvalued housing markets are:
- Canada: 60%
- Belgium: 56%
- New Zealand: 51%
- Norway: 49%
- Australia: 40%
- France: 33%
- U.K.: 31%
- Sweden: 24%
- Finland: 22%
- Spain: 16%
Where does the United States rank? The study found that the U.S. housing market is undervalued by 6%.
Of course, real estate markets vary greatly on the local level. What’s you opinion of the Reno-Sparks market? Overvalued? Undervalued? Or Appropiately priced?
Zen
Looking at prices lately, I’m going to weigh in on Reno being overvalued. The prices work with the low interest rates right now if you look at it purely from a monthly payment perspective, but I don’t look at it that way. I look at it as how much principal is owed to the bank. The prices lately have crossed the line of being undervalued to being overvalued. I don’t think its way over the line, but if prices continue to appreciate like they have, it will be soon.
Jay
I have to disagree. I don’t think housing in reno/sparks is overvalued at all. If you adjust for inflation from 1998 to now we are still undervalued by roughly 7-10%. I can see prices stabilizing and zig zagging for a while but don’t expect any huge decline. The trend is up and will be for the next few years just at a slower clip.