July 2010, The Economists most recently created House-price indicators table offers a sobering reminder how over-priced real estate is in Australia. In a list of 20 countries (Asia, US and European markets), Australia was noted as being 61.1% overvalued on long run average of price-to-rents ratios. It was also noted that:
More concerning, however, is our analysis of fair value in housing, which is based on comparing the current ratio of house prices to rents with its long-term average.
By this measure Australian property is the most overvalued of any of the 20 countries we track
Global house prices - Froth and stagnationThe Economist 08 July 2010.
