House prices in Toronto fell 3.3 per cent in July, as buyers disappeared despite record low mortgage rates.
Sales fell 34 per cent in July compared to June, at 6,564 compared to a record 9,967 a year ago. The drop mirrors those seen out west, where sales have plummeted through the summer despite low interest rates and a lot of inventory for buyers to choose from.
"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 president Bill Johnston.
Total sales through the first seven months of 2010 are up by 12 per cent compared to the same period in 2009.
The average resale price was $420,482, a six per cent increase over July 2009 but 3.3 per cent lower than June's $435,034.
"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.