Toronto home prices climb for second month even as sales slow

TORONTO home prices rose for the second straight month even as demand cooled. 

The benchmark price was up 0.1 per cent in July from a month earlier to C$1.09 million (S$1.04 million), according to seasonally adjusted data released Tuesday (Aug 6) by the Toronto Regional Real Estate Board (TRREB). Sales came under pressure, with transactions falling 1.7 per cent from June. 

New listings also dropped, falling 0.8 per cent in the first decline after three months of gains.

Buyers pulled back slightly in July after a brief uptick in deals a month earlier. Buyers and sellers in the housing market are weighing the path for borrowing costs after some rate cuts by the central bank. In late July, the Bank of Canada lowered its benchmark rate for the second consecutive meeting as inflation softened. 

On an annual basis, sales were up in part because of better supply in the market, according to TRREB. Transactions climbed 3.3 per cent from a year earlier and new listings surged 18.5 per cent. 

“As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory,” TRREB chief market analyst Jason Mercer said in the statement. BLOOMBERG