toronto home prices

Toronto home prices just dropped at a rate not seen in 22 years

It looks like the bubble may finally have popped—or at least stopped growing much bigger—for Canada's largest housing market.

The average price of a new home in Toronto fell by 1.5 per cent in October, year over year, according to new data released by Statistics Canada on Thursday.

StatsCan's New Housing Price Index for October 2018 shows that, while the cost of a new house in Toronto fell just 0.1 per cent between September and October, it plummeted at a faster rate than we've seen since 1996 over the preceding 12 months.

The pace of construction on new, single-family homes also fell by a whopping 40.3 per cent in Toronto between October of 2017 and October of 2018 (though the condo market, it's safe to say, has been doing quite well).

new price index statscan

Statistics Canada data shows the Toronto census metropolitan area dropping from 104.7 to 103.2 on the new housing price index in just 12 months. Image via StatsCan.

Bloomberg suggests this data further proves the success of government measures, introduced last year to help cool Toronto's too-hot housing market, such as tighter federal mortgage lending guidelines and Ontario's Fair Housing plan.

"The Bank of Canada also raised its trend-setting interest rate five times between July 2017 and October of this year," notes the business news agency. "New home prices were advancing at an annual pace of almost 4 percent late last year before the mortgage rules took effect."

Canada-wide, the picture isn't quite so harsh (unless you're looking to make money by selling a house). 

The new home price index was up just 0.1 per cent, year over year, across the country as of October, which StatsCan says marks the smallest annual increase its seen since January 2010.

Two exceptions to the trend are the census metropolitan areas surrounding Windsor, up 0.9 per cent, and Ottawa, up 0.6 per cent.

Bully for them.

Lead photo by

lynellopee


Join the conversation Load comments

Latest in Real Estate

This is what a $13 million house in one of Toronto's most famous neighbourhoods looks like

The Toronto rental market is slowly recovering from COVID lows

$18 million Ontario mansion has hosted a queen and looks like it's out of a fairytale

Toronto is getting two massive skyscrapers that will have room for 1,110 new homes

This houseboat could be one of the best real estate deals in Toronto right now at $339K

This sprawling 100-year-old house in Toronto has access to a private beach for $7 million

Toronto building that just went up for sale comes with an indoor rock-climbing wall

This beautiful Toronto house was built 21 years ago and no one has ever lived in it