Canadian housing over-valued? The Economist puts numbers to it. Updated.

SDA found the story at The Economist but hasn't posted a link here yet.  Over 20 countries are charted on two scales:  Are houses affordable based on personal income and are houses a good deal in terms of the amount of rent you save by owning one?   Canada shows overpricing of 29% for the first and 71% for the second.  This is not good news.  We are at the high end for both numbers.   Earlier story: Canada is riding a bubble. 

Update:  The bursting of the global housing bubble is only halfway through..(Mitch Shedlock quoting again from The Economist).  "Home prices tumbled by 34% in America from 2006 to their low point earlier this year; in Ireland they plunged by an even more painful 45% from their peak in 2007; and prices have fallen by around 15% in Spain and Denmark. But in most other countries they have dipped by less than 10%, as in Britain and Italy. In some countries, such as Australia, Canada and Sweden, prices wobbled but then surged to new highs. As a result, many property markets are still looking uncomfortably overvalued."