In a recent article
Real estate sales and prices have plummeted across most of the Greater Toronto Area since interest rates started rising in the first quarter of 2022.
The Bank of Canada (BoC) began raising its benchmark interest rate — which commercial banks use to set mortgage rates — in March 2022. Since then, the BoC has raised its overnight lending rate from 0.25 per cent to five per cent.
The average price for all dwelling types combined across the GTA peaked at $1,334,544 in February 2022. Since then, that combined average has fallen 15.6 per cent, coming in at $1,125,928 in October.
All cities and towns monitored by the Toronto Regional Real Estate Board (TRREB) have seen price declines since the peak. However, the declines have been more pronounced in some markets than others.