I think we know how this story goes. After months of slower sales and record-high inventory, Toronto’s real estate prices begin their descent:

In the City of Toronto the average price declined one per cent to $377,990 from last August’s $381,681.

Existing home sales in the city were down 25% year-over-year, which qualifies as “stable” according to the Toronto Real Estate Board. Any retailer that reported a 25% drop in same-store sales would be considered to be “tanking”. Inventory, meanwhile, has increased by 31%.

I wouldn’t be surprised if the psychological effect of this slight drop accelerates further reductions in prices.