There was a further decline in home sales in the Greater Toronto Area in August.

Sales plummeted 34.9% year-over-year to 6,357 units, Toronto Real Estate Board reported. Meanwhile the average selling price was up 3% from a year earlier to $732,292.

“Recent reports suggest that economic conditions remain strong in the GTA. Positive economic news coupled with the slower pace of price growth we are now experiencing could prompt an improvement in the demand for ownership housing, over and above the regular seasonal bump, as we move through the fall,” said TREB president Tim Syrianos.

Inventory remained tight with new listings of 11,523, down 6.7% year-over-year to the lowest level for the month in 7 years.

“The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels,” said Jason Mercer, TREB’s Director of Market Analysis.

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