Housing sales down, but prices still up in Toronto

Housing sales have dipped across Canada, but prices keep rising in the red-hot Toronto market, the Star reports.

Sales in June decreased 4.4% relative to June 2011, and are down 1.3% from this May.

Vancouver’s bubble appears to be bursting, or at least deflating. Sales in June dropped 28% relative to figures from June 2011, and housing prices dropped over 13% in the same period. Sales in Toronto have also dropped—down 8% relative to last year. But prices are still up 6.8% in the last year, putting the price of the average house in the GTA at $508,622.

The Globe and Mail notes tighter mortgage rules announced by the federal government went into force in early July. Observers expect them to further cool the housing market.