Australia has the 3rd highest home price

The International Monetary Fund (IMF) has found Australia has the third highest house price-to-income ratio in the world.

The IMF's Global Housing Watch says global house prices have risen consistently for nearly the past two years. The fund says prices are "well above the historical averages" in developed countries including Belgium, Canada, Australia, Norway and Sweden.In addition, the IMF found 14 out of 24 developed economies examined still have above-average house price-to-income ratios, even after the dent in home values in many countries caused by the global financial crisis.

While a recovery in housing markets around the world is welcome, the IMF says it is critical to avoid another unsustainable boom in house prices like the one that preceded the GFC.