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Global house prices dropped by 1.6% in real terms for the third quarter, according to new data from the Bank for International Settlements (BIS).

The decline was led by emerging markets, which saw real prices down 3.1% in the quarter, while prices rose by 0.5% in the advanced economies — however, the Canadian market saw prices down 6%, the BIS said. The real prices reported by the BIS reflect nominal property prices deflated by consumer inflation readings.

There was a wide variation in price trends within the G20 economies, the BIS noted. Prices rose in Australia, Brazil and Mexico, and they were stable in the Euro area and in the U.K. — the weak spots included China and Canada.

The BIS said that about 60% of the countries it tracked recorded higher prices in the third quarter, but large drops in China (down 9%), Türkiye (down 14%) and South Africa (down 3%) drove the global decline.

The third quarter drop followed a 1.4% decline for global prices in the second quarter.

Despite recent weakness, global house prices are still up 21% since the global financial crisis, and up by about 4% from pre-pandemic levels, the BIS said.

Here too, the advanced economies are leading the way, with prices up 33% since the financial crisis. Emerging market prices are up 12% over that period.