AUSTRALIA is running mid-field in the list of the world's most over-valued housing markets.
Economist magazine, which tracks price movements in 21 countries, said years of dizzying ascents were coming to an end for much of the world.
Compared to the amount of rental income houses generate, Australia ranks seventh lost expensive in the world - Australian houses are 45% over-valued, compared to top-of-the-list Canada on 77%.
When compared to the disposable incomes of Australians, our houses are 26% over-valued - fifth on the world list.
The average figure based on the two comparisons puts Australian houses in seventh place at 36% over-valued.
The Economist found house prices fell in 12 of the 21 countries tracked and continue to plummet in Ireland.
After dropping by a third from their 2006 peak, prices in America now stand at 19% below fair value, the magazine found.