Toronto Home-Price Rebound Ends as High Rates Weigh on Sales

  • Purchases fell as borrowing costs jumped to a 15-year high
  • Buyers have had to adjust offers to afford bigger payments
Photographer: Cole Burston/Bloomberg
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Toronto’s unexpected rebound in home prices came to an end last month as back-to-back interest rate hikes by Canada’s central bank helped squeeze buyers out of the market.

The benchmark price of a home in Canada’s largest city slipped 0.1% in August from July to C$1.16 million ($850,000), according to a statement Wednesday by the Toronto Regional Real Estate Board. It was the first decline in six months.