Home sales in the Greater Toronto Area slumped 40% year-over-year in July, Toronto Real Estate Board says.

There were 5,921 sales through its MLS with the detached market both in the City of Toronto and the surrounding areas posting declining sales. New listings were up 5.1% year-over-year.

“Summer market statistics are often not the best indicators of housing market conditions. We generally see an uptick in sales following Labour Day, as a greater cross-section of would-be buyers and sellers start to consider listing and/or purchasing a home.
As we move through the fall, we should start to get a better sense of the impacts of the Fair Housing Plan and higher borrowing costs,” said TREB CEO John DiMichele.

The composite benchmark price was up 18% year-over-year but slipped 4.6% from June. The average sales price hit $746,218, up 5% year-over-year.

“A recent release from the Ontario government confirmed TREB’s own research which found that foreign buyers represented a small proportion of overall home buying activity in the GTA. Clearly, the year-over-year decline we experienced in July had more to do with psychology, with would-be home buyers on the sidelines waiting to see how market conditions evolve,” said TREB president Tim Syrianos.

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