The Toronto Regional Real Estate Board says housing demand in July dropped compared to the previous year, but still remains above average for the season in 2021.
The board says nearly 9,400 home sales were reported in July, down 14.9 per cent compared to July 2020, which set a record for housing sales in the summer month.
On a seasonally adjusted basis, the board says July's sales were down by two per cent compared to June.
The board also says the Toronto housing market tightened in July, with the month's sales accounting for a greater share of listings compared to July 2020.
It says the average price for all home types combined was just over $1 million, up 12.6 per cent compared to a year ago.
On a seasonally adjusted basis, the board says the average price of all home types was up 0.9 per cent compared to June.
"The annual rate of price growth has moderated since the early spring but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home," said TRREB Chief Market Analyst Jason Mercer in a statement.
"This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022."
Mercer noted that there is a large backlog of people seeking permanent residency or citizenship status in Canada due to the pandemic, which will lead to continued pressure on the Toronto area's housing market.
This report by The Canadian Press was first published Aug. 5, 2021.