According the 'The Economist' Metro Vancouver's housing prices are 65% overvalued

Metro Vancouver real estate is valued at 65% higher than it should be, based on local incomes, according to a new global house price index by The Economist.

The U.K. based financial publication's research team found that the region's home prices have risen by more than 60% over the past 5 years.

In terms on real estate value versus household incomes, The Economist reported that Metro Vancouver was the 5th most overvalued of 22 major global cities studied, after Hong Kong, Auckland in New Zealand, Paris, and Brussells in Belgium.

Vancouver is followed by London, UK and Sydney, Australia, both of which were deemed overvalued by 50% or above.

On a country by country basis, Canada was deemed the 3rd most overvalued country in the world for real estate prices, at 56% overvalued, after New Zealand and Australia.

New Zealand's standing in the global index comes as the New Zealand government confirmed on Tuesday that it will introduce a previously proposed ban on foreign buyers purchasing New Zealand resale real estate. Overseas purchasers will still be able to buy presale homes, and Australian and Singaporean buyers are exempt from the ban.