First the numbers...

The number of condos on the market increased from 581 to 737. Over the last 5 years, May averaged 1375 condos on the market so the inventory is still about half.

The number of sales decreased from 599 to 571. Over the last 5 years, May averaged 431 condo sales so the number of sales is still relatively far higher than normal.

So a rise in inventory and drop in sales has calmed the market a little but the supply and demand ratio is still historically very high.

The median price of a downtown condo fell from $571,500 to $543,000. We've had such an increase over the last 6 months, a couple months of steadiness is exactly what the market needs.

Both condo prices and detached home prices fell in May by similar amounts. This price pattern is very typical... strong Spring market, little price drop May to July and then higher prices August to October. I think we're following the typical pattern and I don't expect the rest of the year to be any different than previous years. I am surprised that condos are outperforming homes but the change is welcome news.

The new construction condo scene is unbelievable. The biggest problem agents have when working in new construction is being able to secure their client a suite from the developer. It's very common for popular projects to have 5-10 buyers for every unit available. Prices are often $850 - $950 per sq ft plus closing costs. Almost all Buyers are investors. The rental demand has been strong enough to absorb all these suites as they eventually come on the market.

As we watch Vancouver prices recover and strengthen after the Foreign Buyer's tax, and with Toronto less impacted by Foreign Buyers, I believe our current prices are sustainable. The 80,000 immigrants to the GTA each year need housing and the supply that can be added each year is limited by the construction industry to about 20,000 units of which most are too small for a family.