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  • These 17 countries may have housing bubbles. If they pop

    It seems notable that the bubble markets of the last cycle don't fit this story. It's mostly the countries that managed to avoid price runups last time that are experiencing it now. Here, for example, is the price of new homes in Canada over the past decade.

    It is a completely different pattern. Prices in Canada have been moving up in a more or less straight continuous line, pausing only briefly during the worst days of the financial crisis, whereas the U.S. prices experienced a devastating boom and bust. U.S. home prices are still far below their 2006 peak (and even further below when adjusted for inflation), whereas Canadian prices are reaching new highs.


  • #2
    Canada’s housing market most overvalued in the world

    Property market overvalued

    Canada is home to the world’s most overvalued housing market, Deutsche Bank says in a new study that suggests overvaluation to the tune of 60 per cent.

    Other groups have put Canada near the top of the list, but the German bank puts it at the top, ahead of Belgium, New Zealand, Norway, Australia, France, Britain, Sweden, Finland and Spain, which make up the rest of the top 10.

    Deutsche Bank economists Peter Hooper, Torsten Slok and Matthew Luzzetti came to that conclusion via an average of two measures, ratios of home prices to rent and home prices to income, compared to their historical averages.



    • #3
      Fears grow over China property flameout

      Talk of a property bubble in China is nothing new -- economists have long fretted over the meteoric rise of home prices, and the runaway pace of new construction.

      Media reports on "ghost cities" -- newly constructed Chinese municipalities that were never occupied -- led to frequent warnings of a crisis, which has not yet materialized.