Average price of Canadian home sold in July inched down 0.3%

The average selling price of a Canadian home has fallen by 0.3 per cent in the past year, the first yearly decline since 2013. The average price of a Canadian home sold on the multiple listing service (MLS) in July was $478,696, the Canadian Real Estate Association said in a press release. The number implies that the sale is down 0.3 per cent compared to the same month a year earlier, and down five per cent from June, when the average price across the country was $504,458. Prices were down, but so were sales, reported the association. It also added that there were 12 per cent fewer sales in July compared to a year ago. Sales of existing homes in Toronto fell 5.4 percent in July from a month earlier. That accounted for a major portion of the 2.1 percent national decline. Total resales nationwide are down 15 percent after reaching a record in March.
The benchmark price, which smooths distortions in average prices by accounting for different types of housing, was still up 13 percent in July from a year earlier. In Toronto, the benchmark price climbed 18 percent on the year. Policy makers acted to cool the market after annual price gains exceeded 30 percent earlier this year. Average prices in Toronto were little changed from June, and the nationwide sales decline in July was much smaller than in May and June, which each saw drops exceeding 6 percent.
Vancouver’s experience may serve as an example for Toronto, after the British Columbia government imposed a foreign buyer tax last summer. After stalling briefly, benchmark prices in the Pacific Coast city reached a record in July, meaning a typical dwelling in the west coast city will set you back about C$1 million.