Toronto home prices fall for a second month as loan costs rise
By Ari Altstedter
(Bloomberg) — Toronto home prices fell for a second straight month in September as a jump in borrowing costs added to the economic uncertainty plaguing the market.
The benchmark price of a home in Canada’s biggest city was $924,600, down 0.5% from August and about 4.7% less than it was a year earlier, seasonally adjusted data from the Toronto Regional Real Estate Board showed Tuesday. Home sales also declined for a second month, falling 5.2% from August.
The housing market’s slowdown is deepening as a global surge in bond yields sends borrowing costs up generally. Yields on the Government of Canada’s five-year bond, the benchmark for a popular fixed-term mortgage in the country, rose more than a third of a percentage point in September alone, according to data compiled by Bloomberg. It’s now up more than a half a percentage point since late June.
The increase in borrowing costs is mainly driven by forces outside the country: high fuel prices sparked by the war in Iran, stubborn inflation and the bond market’s increasing wariness of government debt loads globally. But it’s coming amid heightened economic uncertainty stirred by Canada’s trade war with the U.S., which escalated again last month when the U.S. imposed a ban on Canadian alcoholic beverages and other items.
“Would-be homebuyers want to take advantage of today’s more affordable housing market,” Jason Mercer, the real estate board’s chief information officer, said in a statement. “But they need to be confident that their employment situation will remain solid and inflation will not put pressure on borrowing costs over the long term.”
The supply of new listings hitting Toronto’s housing market declined 3.8% in September from August, according to the board’s data.
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Last modified: October 6, 2026
