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The End Of May !! It's been a very interesting spring. With all that's happening in the world today and the economy today it's hard sometimes to sift through all the information we're being bombarded with and really get a handle on how things are going. Certainly the perspective will vary from family to family, and without question there are families that are suffering through these times. However I think when considering the big picture .. things aren't that bad. Generally, it seems that the initial reaction to the economic melt down of last year carried the fear of worse results into 2009 which resulted in a slower than normal market - some might call it a self fulfilling prophecy ... around my house we called it being careful cause no one knew when it might get better. But it did get better, as we moved into March and April we saw things starting to settle down, many families took a breath and looked up, to find a they still had jobs, could still pay their bills and things started looking a bit better. We've probably got a fair ways to go to be clear of trouble, there's probably more bumps in the road ahead .. however .. we can see the light at the end ..and that light is shining on some pretty interesting information. |
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In the graph above you'll see that our sales for the month of May 2009 were almost the same as May 2008, a repeat of the results for April .. which is very encouraging .. we seem to be tracking back to the same volumes as last year. The few months will be critical .. where traditionally, the month with the greatest sales is May .. last year we saw August enjoy the strongest market - if that pattern holds for 2009 we may be in reasonable shape. Over the next 60 - 90 days we'll have a good indicator about how things are going to be. Supply & Demand .. Very Good News Again this month .. the demand has increased at a greater rate than supply Economists like to talk about supply and demand .. and as has been the case since 2006, the market continues to be flooded with supply. The result is that buyers still have the upper hand, greater selection and most of the leverage at the bargaining table. Understanding that is critical for sellers .. homes that are priced well to the competition, show good value in good locations are still enjoying a premium. it's the homes that would be considered marginal, either because of location or condition that have to be more price aware.
Also important to note is the continued fragmentation of the market .. some homes (or styles) in some locations continue to appreciate and enjoy great demand at the same time as others suffer. Understanding these patterns is absolutely necessary to successfully taking part in the real estate market. If there are any questions ... or comments .. just give me a call...
Cheers .... Dave
Dave Chomitz CRS, broker Direct 1-800-267-1166 or 905-373-6282
Royal LePage Pro
Alliance Realty, brokerage |
