Despite dampened demand from buyers, home prices have seemingly plateaued in recent months, offering at least a hint of possible stability in a market that has been shaken by rising interest rates and fears of a recession.

The average price for all types of homes across the region in October was 1.089 million, down 5.7 per cent compared to last year.

The jump in borrowing costs has made it difficult for borrowers to qualify for a large enough mortgage to purchase a property in the Toronto region. That has reduced the number of would-be buyers and slashed competition – and therefore prices – for homes.

At the same time, homeowners have postponed planned home sales or have made the decision not to sell in the current environment.   

All of this is having an impact on the rental market, where costs continue to soar. The average price of a one-bedroom condo is now a whopping 2500 per month.