10 overvalued global housing markets

U.S. market considered 'fairly valued'

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Of 20 global housing markets tracked, the vast majority were overvalued in the third quarter, according to an annual survey from The Economist.

The magazine compared the current ratio of house prices to rents with its historical average to determine a market’s "fair value." Only four markets were undervalued: Japan (-34.6 percent), Germany (-12.9 percent), Switzerland (-6.4 percent), and the United States (-2.1 percent). The Case-Shiller Home Price Index was used to determine the U.S. figure.