Sydney and Toronto had equivalent home prices, then Canada’s crashed. Could Australia see a similar slump?

‘You’re now looking at a mega loss’ … interest rate rises, higher unemployment and a ban on foreign buyers sent Canadian house prices into freefall. Photograph: Bloomberg/Getty Images

At the start of 2022, the typical house in Australia and Canada was worth about $840,000 in each country’s local currency.

Australian city prices have climbed by about A$85,000 over the subsequent three years, while Canadian prices have crashed by C$150,000, leaving the median Canadian home nearly 20% cheaper.