Report finds international houses overvalued by up to 63%
Homes in Wollongong, a seaside city in the Australian state of New South Wales, are more expensive than in New York when the median house price is compared to the median household income, wrote economists Torsten Slok, Matthew Luzzetti, and Peter Hooper.
The report compares home values to their historic multiples of rent and household income. Central bankers have been using financial policy to reduce the risk of house-price bubbles in countries including the UK, Hong Kong, and Singapore.
