Condo and Real Estate Markets Defy Experts

06 October 2010

We have been tracking sales since July – the month that Armageddon was supposed to hit the real estate market. Sure sales volumes dropped significantly from June. Then August numbers were even lower and the boo birds were out in force. Those in the Industry know however that August sales are usually lower than July and so the drop off was not unexpected. Still the media insisted on comparing sales from this year to 2009 on a month by month comparison and yes those numbers are off by 20%. But surprise, sales numbers in September were higher than in August. And then October numbers increased even more. November sales usually drop from October and in the red hot 2009 markets, sales declined by some 13%. This year our guess is that sales in November will match or drop by only 1 or 2% from the sales recorded in October. So draw your own conclusions. People continue to move downtown, whether from immigration or lifestyle changes. So demand for condos is not going to evaporate. The numbers we are seeing now are easily sustainable and when the spring market comes, the experts will be wrong again.