Dave Dry

June newsletter and stats

What do these statistics tell us?

  In the month of May we see that condominium prices rose significantly while detached home prices stayed flat. The condominium market is typically a good indicator as to things to come. With the prices rising in this market segment the indication is that prices will soon rise across the board.

 On the other side of this story is the rising number listings, this time last year there where 8,870 active listings and 1,793 sales. With listings slightly down and sales up, this is a good indication of an active and more balanced market than that of the last few years.

  So what can we look forward to in the next few months, with summer almost here the most active time is also close with June and July posting the highest activity in the last few years. Prices are a function of supply and demand; high demand and low supply command a price rise, while the opposite is true of high supply and low demand commanding a falling price.

  Now what motivates a healthy market? A lack of confidence has been a major influence in the last few years. In the 2006-2007 boom, buyers convinced that prices where going to continue to rise, rushed into the market to purchase a home before it was ‘too late’ and homes where priced out of reach. The boom / bust “hangover” is now beginning to subside. Mortgage rates while stable will rise as economic growth returns, while the U.S is still in economic trouble; the remainder of the world has a good handle on their finances, prices, although still lower than the 2007 high of $424,572 are climbing giving confidence to those who bought during the boom.

  With this confidence; we will return to a stable and active market, a good thing for everyone.