Another month in the books and the results are the same. Sales on the Toronto Real Estate Board were down by 12% in July from July of last year. Active listings are up 28% and the average price was up by just 1% over last year. It certainly suggests that the market is slowing down and we do to disagree with that assessment. In fact, you read it several months ago in this Report that house prices in Toronto 'peaked' in January of this year! Yet we continue to believe that owning is a better option than renting- and so do most Canadians!
But the biggest problem with reporting numbers like these is that both bank economists and newspaper reporters somehow believe that the housing market is just another commodity when in actual fact real estate consists of many micro markets. In July, condo sales between $300,000 and $400,000 were 21% higher than in July of 2007. In July of 2008, 16 condos over one million dollars were sold compared to just 9 in July of '07. What does that tell you about market segments? There is no doubt that overall condo sales in the Downtown market are lower