Property Bubbles Bursting
Callum Thomas | Jul 05, 2017 12:36AM ET
The first edition of the ChartCritic blog series looks at a OECD database for the 3 countries in the commodity dollar bloc. And the interesting thing is, besides all calling their currencies "dollars" and having a bigly part of their economy driven by commodities, they all have grossly overvalued housing markets.
Carlson's chart shows a long term picture of real house prices in America and Canada and the conclusion that Canada is in a housing bubble smacks you in the face.
Besides all having the word "dollar" in their currency and deriving significant income from commodities, the commodity dollar bloc countries have tremendously overvalued housing markets. (note, the same indicator for America was at 102 in the latest reading) (also note the indicators show valuations vs history rather than absolute valuation levels - so we are comparing the degree of over/undervaluation, not relative value).
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