In the past year, I have increasingly turned away from the US housing market to stress the difficulties now besetting other global housing markets. The US market is one of the four housing markets in the world's largest economies to have crashed in the 2000s, along with the Irish, Spanish and British housing markets. The problems there are known. But there have been large house price appreciations (and some declines) elsewhere in places like the Netherlands, Denmark, Australia, Canada, France, Finland and Sweden.
The Economist has a good round-up of global housing market prices that looks at the over- and undervaluation in the most important housing markets in the world. Below is a chart of this accompanied by the following analysis:
To gauge whether homes are cheap or expensive we use...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.