These three affluent Toronto areas have seen prices drop below prepandemic levels. Here’s why

Home buyers may be surprised to learn that three of Toronto’s most affluent neighbourhoods have seen home prices fall below what they were before the pandemic. These areas—Forest Hill, Lawrence Park and the Bridle Path—are known for high-end homes, leafy streets and prestigious reputations. But recent data shows average property values are now lower than they were in early 2020.

Forest Hill, a long-time symbol of wealth in Toronto, saw prices drop about 5 per cent from its early 2020 average. The photo perfect neighbourhood, with its large detached homes and quiet streets, has cooled as buyers pull back. Tighter mortgage rules and higher borrowing costs have cut into demand, even in luxury pockets.

Just northeast, in Lawrence Park, prices are also trending downward. Once considered one of the city’s most desirable areas, it is now seeing values return to early 2020 levels. Homeowners there are feeling the pinch from rising interest rates, while some are choosing to downsize or hold off selling until the market steadies.

The Bridle Path, often called “Millionaires’ Row” for its grand estates, has faced a similar reality. In recent months, fewer buyers have shown up for multi million dollar properties, and average sale prices have dipped below where they stood in early 2020. The cooling in ultra high end real estate reflects broader market sentiment.

Several factors are at work. Interest rates have climbed steadily since 2022, making mortgages more expensive. That has knocked out some potential buyers, even among the wealthy. Meanwhile, many luxury sellers are cautious, opting to wait rather than list in a cooler market. Together, these forces have slowed activity and pushed prices lower.

Still, for those with deep pockets, “bargains” remain hard to find. The drop has not wiped out equity entirely. Homes in these neighbourhoods still cost millions. Buyers who do move now are paying less than they would have in 2020, but prices remain well above average Toronto levels. The situation shows how Toronto’s housing market can shift, even in its richest corners.