The market is crashing: Toronto house prices are down 12% in less than three months

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.