Greater Toronto Area Market is picking up steam

Toronto Real Estate Board last week released sales report for the 1st half of the month that will bring some cheer back into the Realtor community. The number of sales in the 1st half compared to the corresponding period in 2008 were 19% higher and the prices about 2% higher. It is not that Realtors want the prices to keep increasing as we want more and more people to be able to afford a roof over their heads (at least), howver the increased number of sales goes on to show that the consumers have a sense of confidence that they will be able to wither this economical storm.

Most likely the catalyst fueling the sudden spurt in sales and prices is the sudden jump-in by the fence sitters who had been hoping for the prices to fall further. Most Canadian lending institutions increased their "closed" lending rates between 1 to 1.5%, causing a panic amongst the buyers armed with commitment letters from banks at a lower rate of interest for up to 90 days. Should these buyers fail to close before this "best buy before" date, they will have to pay the increased rates.