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The Toronto market can also be broken down even further. While a straight comparison of July to June shows prices down 0.3 per cent, removing condos from the equations increases that decline to 1.6 per cent and reflects the divide in the market.

“There has been loosening (of prices of) condos but not to the same extent (as low-rise homes). You also have lower sales of high-end homes and more sales of condos which are less expensive. The average price of transactions will be amplified by the change in the composition of sales,” said Pinsonneault.

It’s also worth noting that the national numbers, although heavily influenced by Toronto, may also be getting a boost from hot summer markets in Montreal and Ottawa-Gatineau, where the index rose two per cent and 1.6 respectively, from June to July.

Realtors have been saying for a few months that the Toronto condominium market is still strong and it’s more detached homes that have been stung, especially among foreigners hit by Ontario’s 15 per cent non-resident speculation tax.

“The condo market is still growing. Prices are actually up about double-digit in some areas. You take out condos and the picture is different,” said Christopher Alexander, regional director, RE/MAX INTEGRA Ontario-Atlantic Canada Region. “(Low-rise) homes had the biggest gains (a year ago). The condo sector was doing well but not as well.”

Derek Holt, vice-president and head of capital markets economics of Scotiabank Economics, said summer sales numbers even seasonally annualized are probably a poor way to analyze the market.

“How much are we going to attach to this (month)? I think you’ve got to get into six or 12 months of data and a meaningful housing market environment,” said Holt. “The sales numbers do show the market (correcting) but I do think in my heart of hearts that it’s going to be a transitory shock (in Toronto) like the one in Vancouver. You will start to rebound.”

gmarr@postmedia.com

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