Thursday, October 28, 2010

Canada's Real Estate Overvalued

Canada's Real Estate Overvalued
Canadian house prices are overvalued, but not as much as those in Australia, Hong Kong or France, according to a new worldwide survey. The data published in The Economist magazine's annual survey shows Canadian homes cost on average 23.9 per cent more than they are worth. That's somewhere around the middle of the pack. The scale ranged from Australia at the high end, where homes are 63.2 per cent overvalued, to Japan at the low end, where houses are 34.6 per cent undervalued. Canada's house prices were up 4.5 per cent from one year earlier. And between 1997 and 2010, prices rose a whopping 70 per cent, the report said.

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