Toronto Market Slower In July

Houses

House prices in the City of Toronto fell about 8% in July as compared with June. The average price is just over $1.4 million, close to the beginning of the year and just below last July. This is the typical summer slowdown script, and prices are continuing to fall through the first half of August. Overall, prices continue to track about 4% below last year.

The inventory of houses for sale remained steady at just over 3 months’ supply, and so the market remains in balanced territory. This suggests that the fall in prices is seasonal and not the result of an increase in homes for sale.

Condo Apartments

Condo prices in the City of Toronto actually ticked upward slightly and are now at their highest level so far this year. While this looks positive, early indications for the present month suggest that the summer slowdown is hitting condos this month, and that August prices are falling. It seems that it’s too soon to call a bottom for the Toronto condo market.

The inventory of condos for sale has been falling all year, from just under 8 months’ supply in January to just under 5 months in July. This is a hopeful sign, but we’ll need to wait to see whether the August slowdown is a reflection of rising inventory.

Bottom Line

The Toronto market for both houses and condos is continuing the downward trend that began when interest rates were increased 4 years ago. We are in the middle of a typical summer slowdown, and it’s unclear whether we will see the usual fall bounce this year. That will depend heavily on interest rates, which may or may not increase due to higher inflation.