The wealthiest and most indebted households are more likely to overestimate the value of their homes, analysis by staff of the Reserve Bank of Australia has found.The research aimed to distill some "facts about how Australian homeowners value their homes," and shed light on "household decision-making" on finances.Postcodes in which households generally overestimate the value of their homes "are those in which households allocate a relatively high share of their wealth to financial assets, such as equities," the RBA found. "Postcodes that appear to overvalue their homes typically spend more, have higher leverage and choose riskier portfolios than postcodes that do not.""Since this effect exists after controlling for the average level of prices, it suggests that these valuation differences may be capturing underlying optimism."The RBA report was entitled Home Price Beliefs in Australia, which gives the topic a religious flavour.