STATS 'N FACTS:
The numbers are still not apples to apples compared to May of 2020 but next month the stats should be more "relatable".
New Listings rose by 104%, which helped all those buyers who were out shopping, despite the "lockdown" and total inventory was actually up by 7%. This makes for a very strong month of May!
Average sale prices (Now OVER $1.1MILLION !!) rose by 28% AND everything sold at WARP SPEED...in just 11 Days! 54% faster than last year at this time...and to be expected considering we were still on Covid alert
Condo sales in the GTA rocketed to 171% higher than last year and the condo market has fully recovered with multiple offers omni present again.
Average sale prices for condos ROSE by 21 % in the 905 and prices in the city are up by 6% vs last May.
As "exciting" as those numbers appear, there is cause for concern here. And contrary to what you may think, we as Real Estate professionals, are not jumping for joy over these numbers. Affordability is KING. And that KING is being de-throned!
Stats In The City: Be forewarned that these numbers are STILL "hyperbolic, non-sensical and meaningless!
Detached home sales rose by 191% and prices are up by 21% year/year
Semi-detached homes ROCKETED by 173% and prices increased by another 16 %
And condo apartments sales SHOT UP by 159% while prices rose by 6% vs last May's average prices.
So what does this all mean for you?
While there is a pullback on sales compared to earlier months of 2021, May sales are still very robust historically.
The average sale price for May is a RECORD!
The speed at which properties are selling is still mind boggling.
Sales and prices in the suburban markets are also "unleashed"; however, we are concerned that these aggressive stats are unsustainable and that there could be some "black clouds" down the road.
Over all, we are proceeding steadily toward our "pre-pandemic" housing market norms.
What's in store for you and for us as the month of June unfolds?
We are seeing fewer showings and offers compared to May, and we believe the market has pretty well "plateaued" as the summer months descend upon us, and as our social lives and economy finally begin to open up.
The new Stress tests began June 1, so that will likely sideline some of the first-time buyers out there. All mortgages (both insured and uninsured, will now have to qualify at the new rate of 5.25% (vs 4.79%) and this will mean that buyers maximum mortgage will diminish by almost 5%.
Next month there should be no "shockers" so prepare for a more "mundane" newsletter from yours truly!
Stay safe. See you next month. #YourHouse #MyWheelhouse
