Canadian Home Prices Back To 2016 Levels After Inflation, Still Out of Reach

Canadian home prices climbed for the first time in a little over a year, according to Bank for International Settlements (BIS) Q2 data. Adjust for inflation, however, and the brief gain disappears. Real home prices fell further, reaching their lowest level in nearly a decade—but that doesn’t mean buyers are finding 2016-era affordability. Canadian Home Prices Remain Nearly 20% Below Peak Canadian home prices climbed 0.78% in Q2 2026, marking the first quarterly increase in over a year. Prices remain 3.97% lower than last year, and 19.50% below the record high. A quarter of growth may be a positive sign, but it doesn’t change that prices have tumbled all the way back to 2021 levels—in nominal terms. As rough as it looks, the picture in real terms isn’t improving. Canadian Home Prices Have Fallen Nearly 30% After Inflation Canadian home prices in nominal and real (inflation-adjusted) terms. Source: BIS; Better Dwelling. After inflation, Canadian home prices fell 0.87% in Q2, marking a fifth consecutive quarter lower. Real prices are 6.72% lower than a year earlier, and that 19.50% drop from peak turns into a massive 29.93% plunge once adjusted for purchasing power. That puts them rou...