After a quick lock at some stats from the first 22 days of August 2009 versus all of August 2008 one can conclude that some of those recent bidding wars are due to lack of supply and steady demand. An example is an area where one of my clients is looking, W01 - at the end of August 2008 there were 113 dwellings available for sale, as of August 22, 2009 there were only 64. That is a drop of 43%. Yet this area is in demand as it includes HighPark and Swansea one has to fit to get in. And they are, a number of news stories are highlighting these bidding wars and news like this increases consumer confidence.
To complete the story you would ask, what about the price....well YTD the median in this area is $660,000 versus $667,000 over the first 8 months of 2008. My math says that we are back to pre-September 2008 pricing.
Sales Data from Toronto Real Estate Board and MLS
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