I usually put his chart on my blog (with his permission). However I cannot do it this time. My stomach wont let me. We suspected that prices were strong. Well answer this students of economy 101
Imagine you have something to sell and the inventory in the market place, from the previous month, is up over 20% and the sales are down nearly 40%, what should happen to the price:
1) Go down sharply
2) Stay flat
3) Go up!
Of course the right answer and the one which will give you the course credit is 1) but in fact what has happened is 3)!
We are now back up to our all time average price in detached (though condos fell). I am not going to try and explain it away for you, yes it could be higher end buyers are still buying while everyone else has dropped out of the market.
I will just suggest that state of affairs cannot continue. We will either have to have more buyers coming in to the market soon, or the price will take a sharp down-turn.
If I am wrong and September shows less sales, more inventory and higher prices...I will close the blog down because there is no point commenting on an irrational market.
After all our huffing and puffing above, we may actually see the HPI come down for August. For that we have to wait for the GVREB numbers.