The latest data from the Toronto Regional Real Estate Board (TRREB) on Thursday showed that July home sales fell 47.4 percent year-on-year. Sales activity declined by 24.1 percent month-on-month.
Seasonally adjusted, TRREB reported that sales fell 0.3 percent from June to July.
With some homebuyers sitting on the sidelines, it seems that some would-be sellers are choosing not to list their properties.
The number of new listings fell by 4.1 percent in July compared to the previous year. TRREB said it expects new offerings to continue following sales trends next year.
Amid less competition among buyers, the average home sales price stayed longer than its February peak, reaching $1,074,754 last month, led by the single-family segment.
“With significant increases in borrowing rates in a short period of time, there has been a shift in consumer sentiment, not market fundamentals,” said Kevin Crigger, president of TRREB, in a press release.
He called on the federal government to take steps to improve affordability for buyers in the face of rising borrowing costs and high inflation.
He also denounced the recent increases in municipal development taxes.
Toronto City Council needs to consider the recently approved 46 percent increase in development costs, bringing the average cost of all government taxes and fees to an astonishing $350,000+ for each new detached home and over $180,000 for a new condominium, said Crigger.
“We commend the city for granting a development fee waiver for up to three additional units on single lots, which will lead to more missing mid-range multiplex homes, but this waiver alone is not enough.”