Home prices in the Greater Toronto Area reached historic highs in February of 2022, but their shining moment was short-lived as the Bank of Canada began raising interest rates shortly thereafter.

Since March, the Bank has hiked interest rates six times, and a further increase is expected in early December. As rates have risen, home prices have fallen.

To see where the impact has been greatest, real estate agency Zoocasa compared home prices from February and October in more than a dozen cities across the Greater Toronto Area.

Every city included in Zoocasa's report experienced a sizable price decline, but at 9.73 per cent, the City of Toronto saw the smallest drop. Prices in the city fell from $1,210,889 in February to $1,093,097 in October.

Tipping the scales in the other direction was Brock — prices fell from $1,168,477 to $805,653 over the same period, a decline of 31.05 per cent. Oshawa followed with a 28.87 per cent drop, and Clarington with a 27.76 per cent decline.

In addition to Toronto, only two other GTA cities recorded price declines of less than 20 per cent. 

The average home price in Mississauga dropped to $987,356 in October, a 19.42 per cent decline from the February peak. Prices were down 17.73 per cent in Markham to $1,282,561.

Zoocasa

On a provincial level, Ontario has seen the greatest price decline in Canada. Average home prices have fallen from $1,075,800 in February to $879,400 in October, an 18.26 per cent decline. Amongst the 14 GTA cities, average prices have fallen by $294,000.

"Many insist that rising interest rates are the culprit driving prices down in Ontario," Zoocasa said.

"As the cost of borrowing has increased in already costly markets, some prospective buyers have been priced out or are waiting on the sidelines for interest rates to come back down."