The number of homes sold through the MLS® System of the Parry Sound Real Estate Board was down from year-ago levels in July 2010. A slowdown in activity throughout Ontario had been widely expected in July as a result of sales being pulled forward in advance of the HST.

According to statistics provided by the Board, residential sales numbered 45 units in July 2010, 15 per cent below levels reported in the same month last year. On a year-to-date basis, however, sales activity in the first seven months of the year remained six per cent above levels reported over the same period in 2009.

“It had been expected that some buyers would choose to accelerate purchases in advance of the introduction of the HST on Canada Day,” said Shirlene Johnston, President of the Parry Sound Real Estate Board. “This explains the decline in activity in July, as well as the strong sales figures we saw in the previous three months. Activity may remain soft over the next few months, but ultimately we expect a more stable market to emerge, with demand coming back into line with economic fundamentals.”

In line with weaker sales activity, new supply was also down in July. The number of new residential listings on the Board’s MLS® System declined 33 per cent from year-ago levels to 102 units in July. On a seasonally adjusted basis, new listings have trended steadily lower since reaching record levels in March.

Active residential listings numbered 678 units at the end of July, up 10 per cent from a year earlier. There were 15.1 months of inventory at the end of July 2010, up from 11.7 months at the same time last year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.