Index of Global House Prices

As demonstrated in the chart below (courtesy of the Economist), house prices across the globe continue to remain well above trend levels, with Spain being the most out of whack. Relative to incomes, the US is starting to approach long-term averages, though I imagine we will continue to overshoot on the downside given excess inventories and rising unemployment. Home prices in Japan look particularly cheap - may be a nice time to look at real estate opportunities in that country, particularly with the Japanese stock market hovering around 25 year lows.