Let's catch up on the monthly data:
Over the last 5 years, the average number of condos on the market for sale in May has been 781. This past May, we had 768 available. The condo inventory has returned to typical levels.
Over the last 5 years, the average number of condos on the market that sold in May has been 458. This past May, we had 510 sales. Demand is a little higher than normal.
The supply vs demand chart dropped significantly. It's still a Seller's market but it's approaching a balanced market.
The May median price of a downtown condo was slightly down from $705,450 to $700,000.
In May, the average price of a detached home was slightly up from $1,700m to $1,716m. Since January 2017, home prices are up 28% while condos are up 52.0%.
The year over year statistics are pretty shocking... have a look at these year over year price increases:
In the 905, detached homes appreciated 41.3% vs 20.5% for the 416.
In the 905, condos appreciated 21.4% vs 6.3% for the 416.
This shows us that the surrounding GTA is performing better than downtown. I think it's fair to assume that the pandemic has played a significant role in this trend.
Looking at the bigger picture, the historical price trend going back to 1970 we see the rate of rising prices accelerating.
The average increase over that past 50 years is 7.3% but 2021 is on trend for about a 15% increase.
There is growing discontent of educated workers in their 20's and 30's who just can't get on the property ladder because entry level housing has become so expensive. They are either renting or still at home and frustrated. Entry level wages haven't budged in over 20 years while the cost of real estate has quadrupled. We should expect to see organized protests and politicians forced to address the issue at upcoming elections. I don't see any easy solutions that makes entry level housing more affordable that doesn't also damage current owners and investors of that product. We're all facing significant inflation and wealth preservation may become the focus. What a crazy couple years we've had and the unforeseen financial consequences will impact us all for years to come.
We'd be happy to discuss your own situation in plans in more detail, just reach out to us.
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