Canadians love real estate so much, they’ve sent price growth higher than almost all of its peers. US Federal Reserve numbers show the market had the highest price growth of any G7 country, as of 2018 Q3. Just last year, prices in Canada were the fastest growing annually in the group. This year, they’re the fastest falling. Here’s some quick insights from the latest numbers.

Canadian Real Estate Prices Are Down Over 4.24%

Canadian real estate prices continued to slip from all-time highs. Prices across the country dropped 1.1% in 2018 Q3, when compared to the previous quarter. That brings prices 0.42% lower than the same quarter last year, and 4.24% lower than peak. During this period, no other country saw declines. However, no other country saw increases to this degree either.

Canadian Real Estate Prices

Inflation adjusted index of Canadian real estate prices.

Source: US Federal Reserve, Better Dwelling.

Canadian Real Estate Prices Grew 4x Faster Than The Median

Canadian real estate prices inflated by a lot more than the rest of the G7. Real home prices in Canada increased a whopping 118.08% from 2005. The increase is more than 4x faster than the median rate of growth across the G7. The second closest G7 country is the UK, which saw prices rise 45% over that same period. Might also be worth noting that at 45%, the UK is being called a “bubble on a bubble” by global bank analysts.

Canadian Real Estate Prices Vs G7

Inflation adjusted index of G7 real estate prices.

Source: US Federal Reserve, Better Dwelling.

Canadian Real Estate Prices Are Now The Fastest Falling In The G7

Canadian real estate prices also become the fastest falling in the G7, just one year after leading it. The 0.42% 12 month decline in 2018 at Q3 is the only negative real growth in the whole group. The next closest group is Japan, with a 0.3% gain compared to the same month last year. Even with the decline, Canada’s prices are still massively elevated compared to its peers.

Canadian Real Estate Price Change Vs. G7

The 12 month price change of inflation adjusted Canadian real estate prices, versus other G7 countries.

Source: US Federal Reserve, Better Dwelling.

Canadians paid steep prices compared to a few years ago. This is especially true when you compare real price growth to Canada’s economic peers. Prices increased at several folds higher than the typical increase. They’re finally starting to pull back, but have a long way to go before hitting a “normal” pace of growth.

Like this post? Like us on Facebook for the next one in your feed.