{"id":829945,"date":"2026-07-27T20:57:15","date_gmt":"2026-07-27T20:57:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/829945\/"},"modified":"2026-07-27T20:57:15","modified_gmt":"2026-07-27T20:57:15","slug":"canadian-real-estate-is-the-fastest-falling-in-the-g7-remains-frothy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/829945\/","title":{"rendered":"Canadian Real Estate Is The Fastest Falling In The G7, Remains Frothy"},"content":{"rendered":"

Canadian real estate is falling faster than anywhere else in the G7, yet it remains one of the frothiest markets in the group. Bank for International Settlements (BIS)<\/a> data shows real (inflation-adjusted) home prices dropped across all but two G7 countries in Q4 2025, the latest common quarter. Despite Canada\u2019s sharp correction, it still lays claim to the title of the second-highest price growth since 2010.\u00a0<\/p>\n

Canadian Real Estate Is Leading The Way Lower\u00a0<\/p>\n

Indexed value of real home prices across the G7.\u00a0<\/p>\n

Source: BIS; Better Dwelling.\u00a0<\/p>\n

Canada recorded the sharpest quarterly decline in the G7, with home prices falling 2.1% in Q4 2025. It was followed by Japan (-1.5%), Germany (-0.3%), France (-0.2%), and the U.K. (-0.2%). The only countries with positive moves were the U.S. (+0.4%) and Italy (+1.5%), leaving a wide gap from leader to laggard.\u00a0\u00a0<\/p>\n

That weakness carried over into annual growth, where Canada again led the group lower with a 5.5% drop from a year prior. The only other G7 countries to report negative annual growth were the U.S. (-1.7%) and the U.K. (-1.1%). The remaining four posted gains, though only Italy (+2.9%) and Japan (+2.3%) saw material growth after inflation.\u00a0\u00a0<\/p>\n

Canadian Home Prices Saw Explosive Growth From 2010 To Peak<\/p>\n

G7 home price change from 2010 to each country\u2019s peak.\u00a0<\/p>\n

Source: BIS; Better Dwelling.\u00a0<\/p>\n

Canada leading the group lower isn\u2019t a surprise\u2014it led the way higher by a wide margin. From 2010 to its Q1 2022 peak, Canadian real home prices surged 98.6%. That growth was over 50% higher than the next closest markets: the U.S. (+61.1%, peaking in Q4 2024) and Germany (+60.6%, peaking in Q4 2021).\u00a0<\/p>\n

Baseline-to-peak gains were far more modest across the rest of the G7: Japan (+24.0% in Q1 2025), the U.K. (+22.4% in Q3 2022), and France (+12.8% in Q3 2022).\u00a0<\/p>\n

The weird exception is Italy (+0.3%), where prices actually peaked back in Q3 2010\u2014putting its recent 1.5% quarterly lead into clear context, eh?\u00a0<\/p>\n

Canada Leads Way Lower, Not One G7 Country Is At Its Peak<\/p>\n

G7 home price change from peak to Q4 2025.\u00a0<\/p>\n

Source: BIS; Better Dwelling.\u00a0<\/p>\n

Canada is also leading the way lower from its peak, plunging 28.4% from Q1 2022. It is followed by Italy (-24.3%), which is still trying to recover a peak it hit roughly 15 years ago. Only two countries remain within spitting distance of their record highs: Japan (-2.1%) and the U.S. (-1.7%).\u00a0<\/p>\n

G7 Home Prices From 2010 to 2025<\/p>\n

Canada is no longer the frothiest market in the G7. That honour has been claimed by the U.S., where prices climbed 58.3% from 2010 to Q4 2025. However, even with Canada\u2019s sharp correction, prices have still beaten inflation by 42.3% over the same period, securing its spot as the second frothiest market. From there, it\u2019s a steep drop to Germany (+29.3%) in third place, followed by Japan (+21.4%), the U.K. (+10.3%), and France (+0.1%).\u00a0\u00a0<\/p>\n

The only country where home prices failed to keep pace with inflation is Italy, where they sit 24.1% lower than in 2010. In nominal terms, Italian prices are exactly where they were back then\u2014meaning the entire decline is simply the result of inflation eating away at the value.\u00a0\u00a0<\/p>\n

A sharp correction makes for great headlines, but zoom out and the reality is clear: Canada isn\u2019t experiencing a collapse\u2014it is just slowly letting the air out of a historic, decade-long bubble. Whether the market is actually correcting also depends on where you are. The national figure is lower, but only two provinces have seen a significant correction<\/a>, while most printed fresh highs last month.\u00a0<\/p>\n

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