The Economist’s quarterly home price index was just published, concluding that while home prices have come down globally from their 2007 peak, they are still overvalued on the whole.
Indeed, only in Hong Kong, Singapore and Switzerland is the property market more overvalued than it was before the global economic downturn began in the third quarter of 2007.
They like the US market more than most, though:
In every other market the ratio of prices to rents has fallen over that period. In America, prices may have overshot a little. Using the Case-Shiller index of prices, the market looks undervalued by almost 8%.
Source: The Economist – Global House Price Index (table included)
Because I live in California, my perception of US housing is probably skewed – everything still appears to be insanely overpriced here. I’ve got other beef with housing though – read my reasons to never buy a home here.