If you really want to find cheaper housing, the best place to look is Detroit - home to stall American automobile industry. There every fifth property is empty, the city looks at nadir, the population decreases with every passing day. Some homes are selling for $ 100 more - for 500, writes the editor of the free London business newspaper City AM Allister Heath. In the U.S., prices have collapsed so severely that they are already undervalued, said Heath. According to him it is in strong contrast to most other countries in the world, including Britain, where prices have not fallen enough to ensure a return to fundamentals in the market. Seen in a long period of time, property prices generally move in line with average earnings of men. However, prices in many countries are still completely cut off from reality, says in his note from Ed Stansfild Capital Economics. Housing prices in Britain fell by 15-16% from their peak, but again went up from last year, although this recovery appears to weaken. In Sweden, even until the fourth quarter of last year, housing prices have offset the earlier decline of 7 percent to reach a record of all time. In Australia, prices have risen by 15 percent since the beginning of 2009 and also the historical peak. The ratio between housing prices and the gross average earnings remained between 20 and 40% above their long-term averages, says Heath. In some cases, is cited as a cause temporary imbalances between supply and demand - in Britain as most owners refrain from selling, which is pushing up prices. Reductions in housing costs, which are required to return the price-earnings ratio to its average value in the long term are enormous in most countries. In Britain, prices must be reduced by 28% (unless, of course, not wages rise by less in nominal terms). In Spain it is about 30% in France - 26% in Sweden - 24% in Ireland - 22% in the Netherlands - 38%, while in Australia - 40%. Property prices in many countries still seem more than fair value and, as another method for determining the fair value of the property, which is based on the ratio between price and rents.