Guess What? Your Home Is Undervalued!

Worried about the value of your home? Well here's a rare bit of good news: Your home may be undervalued.

A recent report by Capital Economics, a British research firm, looks at the ratio between average home prices and the income earned by average homeowners. The ratio is now very low, according to the report, suggesting that homes in the U.S. are undervalued by nearly 20 percent. The same report finds that homes in Europe are over-valued by more than 20 percent -- and Australia's by 40 percent!