Toronto new home prices see biggest 12-month drop in more than two decades
Toronto new home prices fell at the fastest pace in more than two decades in October, further evidence that tighter mortgage lending has slowed a boom in Canada’s biggest city.
Statistics Canada’s price index for new Toronto homes fell 1.4 per cent in October from a year earlier, the most since September 1996. Across the country, the price increase of 0.1 per cent was the slowest since 2010.
The housing market has moderated this year as federal rules made it harder to qualify for a mortgage. The Bank of Canada also raised its trend-setting interest rate five times between July 2017 and October of this year. New home prices were advancing at an annual pace of almost 4 per cent late last year before the mortgage rules took effect.