In this paper we estimate the equilibrium relationship between house prices per m2 in Lima and their macroeconomic fundamentals from 1998.I to 2013.IV. We find that terms of trade, the current account, mortgage loans, an index of the rule of law, demographics and market capitalization have the expected signs and are statistically significant. Then, in order to assess if house prices are misaligned with respect to their fundamentals, we generate 10,000 sequences of equilibrium prices, after bootstrapping the equilibrium relationship. We find that house prices per m2 would not be misaligned with respect to their fundamentals, in despite of the recent increase.