Whose housing market is the most overvalued of them all?

Rather useful chart from the OECD Economic Outlook today comparing price levels (and measures of overvaulation) in property markets around the developed world (click on it to see a bigger version).

On the basis of this chart (well, adding up the two measures – price to rent and to income, which is admittedly a slightly unscientific way of doing it) the prize goes, marginally, to Belgium.

Its house prices are currently 62% above the long-term average in comparison to rents, and 50% above the long-term average in comparison to incomes. But it’s given a close run by Canada, whose prices are currently 68% above the long-term average in comparison to rents, and 32% above the long-term average in comparison to incomes. Honorable mention goes to Norway and New Zealand.

On this basis, Britain looks lukewarm rather than overheating, while the United States still looks like positively good value.