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:
“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…
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