The Canadian resale housing market continues to ease up. July sales dropped significantly when compared with the same month last year. This slow-down is not surprising in the face of tighter mortgage regulations and rising interest rates.
"The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring," said Toronto Real Estate Board (TREB) President Bill Johnston.
While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price.
Ontario - Sales and new listings down, average price up in July
Toronto, August 5, 2010 - Greater Toronto REALTORS® reported 6,564 sales in July – a 34% dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.
Total sales through the first seven months of 2010 were up 12% compared to the same period in 2009.
Despite the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a 6% increase over July 2009. Over the first seven months of 2010, the average selling price was up 12% annually to $432,253.
"Market conditions promoting growth in the average selling price have remained in place. While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price," said Jason Mercer, TREB's Senior Manager of Market Analysis.
In July, the median price was $361,000, from the $339,900 recorded during July of 2009.
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