The Toronto Regional Real Estate Board stated that home sales in July were higher than last year but decreased from the previous month, while listings increased.

The board explained that there were 5,391 homes sold during July in the Greater Toronto Area, an increase of 3.3 percent compared to 5,220 homes sold in the same month last year.

Sales decreased by 1.7 percent from June on a seasonally adjusted basis.

The total number of newly listed properties for sale reached 16,296, an increase of 18.5% compared to last year.

Growth in listed properties outpaced sales on an annual basis, but prices slightly declined to $1,106,617, a decrease of 0.9%.

Jennifer Pierce, Chair of the Canadian Real Estate Board, confirmed that the increase in sales compared to last year is encouraging and a possible sign that low-interest rates are starting to take effect.

Pierce said in a statement on Tuesday: "We may begin to see a positive impact from the interest rate cuts announced by the Bank of Canada in June and July."

"Borrowing costs are expected to decrease further in the coming months. We anticipate that sales will pick up as buyers take advantage of lower monthly mortgage payments."

The average price of a detached home in July was $1,425,927 in the Greater Toronto Area, while the average price of a condo was $718,698.

The composite benchmark price, which aims to represent typical homes, decreased by five percent in July compared to last year.