Toronto New Home Prices Post Biggest 12-Month Drop Since 1996

(Bloomberg) -- 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 percent in October from a year earlier, the most since September 1996. Across the country, the price increase of 0.1 percent was the slowest since 2010.

Toronto New Home Prices Post Biggest 12-Month Drop Since 1996

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 percent late last year before the mortgage rules took effect.

New home prices advanced 0.4 percent in Vancouver, while they declined on a 12-month basis in Edmonton and Calgary in the struggling oil-producing province of Alberta.

On a monthly basis, new home prices were unchanged in October from September. The index includes single-family, semi- detached and row houses, but doesn’t capture condominiums that have become more popular in Toronto in recent years.

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