Listings continue to surge, prices slide

Preliminary Toronto house price data for June is extremely troubling.

Here is the average selling price over the past three months:

$919,614 - April

$863,910 - May

C$808,847 - June prelim

That pace of declines is severe. It's more than 12% in a little over two months.

The headline realtors will focus on is that prices are still up 6.7% year-over-year but the month-over-month changes are much more indicative of the real time scenario.

Something has clearly changed in the market. Listings are up 22% and sales are down 56.2% as buyers go on strike.

The psychology of the market was completely upended by rule changes in the province announced in late April.