The Economist says that Canada’s housing market is overvalued by at least 25 per cent. The magazine named Canada along with the UK and Australia as being ‘notable’ for having an overvalued housing market. The metrics it uses include home-value-to-rent ratios and prices relative to after-tax income. It’s not the first time that Canada has ranked highly in the Economist’s analysis of property markets, but it is the first time it’s been at the top. House prices compared to rents are 89 per cent overvalued, which is a rise of 73 per cent from two years ago. Compared with income prices are 35 per cent too high.