Canada’s largest housing market is beginning to show signs of cooling off, as sales levels continue to slump from record highs.
According to the latest data published by the Toronto Regional Real Estate Board (TRREB), there were a total of 9,390 properties that traded hands in the Greater Toronto Area (GTA) in July, marking a 14.9% decline from year-ago levels. However, sales levels were down 40% from the record 15,652 transactions that occurred in March, suggesting that the peak in real estate activity has waned.
The average selling price in July remained modestly unchanged at $1,062,256 from a month earlier, but was still 12.6% higher compared to July 2020. “The annual rate of price growth has moderated since the early spring, but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022,” explained TRREB chief market analyst Jason Mercer.
Indeed, despite the decline in transactions, housing prices remained supported by tighter inventory. According to TRREB, there were a total of 9,732 active property listings at the end of July, down from the 11,297 units witnessed in June.
Information for this briefing was found via the TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.