Leading Then, Falling Now, Canadian Real Estate ’s Downward Plung

Over the past year, Canadians have maintained superiority in regards to real estate growth among all G7 countries. According to statistics provided by the US Federal Reserve, the Canadian real estate market had surpassed all other G7 countries in respect to just how high the price growth of real estate had become. As of the end of the third quarter, Canada was at the top. However, as 2019 quickly advances, Canadians are falling at a rate all to familiar to the original spike. Following several complex inquiries, the following analytical assessments and observations have been made.

An Extraordinary Leap

When comparing third quarter data to that of what had been gathered in 2005, real estate prices among major Canadian cities increased at approximately 118%. It’s incredibly important to note that this inflation statistic is 4 times that of the G7 inflation rate median. The only prominent country coming anywhere close being the UK, who observed a price increase of 45%.

A Prodigious Decline

When comparing prices throughout the second and third quarter of 2018, a drop in real estate price of 1.1% is observable. When comparing this datapoint to the same quarter within 2017, a decline of 0.42% is apparent, meaning Canadian real estate plunged 4.24%. This is significant when factoring in the lack of inflation and deflation among all other G7 countries during this time period.

Canadian Inflation

Although Canadian real estate is spiking downwards at a rate faster than all other G7 countries, Canada still maintains elevated prices at a level that surpasses virtually all else.

When comparing Canada to G7 countries, it’s quite clear that Canadians have been shelling out fortunes in comparison to what is surprisingly only a few years ago. Fortunately, Canadian inflation rates seem to be normalizing, but who’s to say for how long? The road to normality may be long lasting and rough, but important it shall remain.