May Stats Show Sellers in Control Once Again
The Stats are out for the month of May from TREB, and as I predicted in my last post, they show May as being the busiest month of the year so far.
Let’s break down the numbers for downtown condo sales:
In C01 (downtown west), there were 325 sales compared to 302 in May ’08 which represents an increase in sales of about 8%.
- Average prices were down from $372K to $327K BUT the median price was only down from $320K to $304K. Clearly the high-end of the condo market has been hit hard over the past year.
In C08 (downtown east), there were 134 sales this year versus 120 last year (+12%).
- Average prices in C08 were $298K versus $314K last year, and median price was $280K versus $293K last year. Again showing the trend that the average price has been hit harder than the median price.
Also of note, the Sales:Active Listing ratios for condos for C01 and C08 in May were 48% and 50% respectively. Clearly May was a seller’s market. This is a huge change from just a few months ago when we were seeing Sales:Active ratios in the 13-15% range.
Still that is nothing compared to the absolute frenzy that is happening in some areas of our city like East York, Riverdale, The Danforth, Leslieville, and the Beach. In these areas May had Sales:Active listing ratios in the 70-100% range.
Why the temporary insanity in the market? In my opinion it boils down to one simple reason: Supply and Demand. Supply is way down because seller’s feel a recession is no time to sell, and Demand is up because interest rates are at all-time lows.
Questions? Comments. You know what to do.
