This week The Economist released their annual assessment of housing markets around the world which concluded that “…home prices are overvalued by about 25% or more in Australia, Belgium, Canada, France, New Zealand, Britain, the Netherlands, Spain and Sweden…”
You can read the full article here: http://www.economist.com/node/21540231 and then it’s worth referencing Tony Alexander’s weekly email newsletter which provides a more useful and insightful view of the future of houses prices in NZ: http://www.bnz.co.nz/static/www/docs/weekly-overview/w2011-12-08.pdf
The good bit starts on page 8 and gets really good on page 12.