A new report from the Canadian Real Estate Association (CREA) shows the market tighter than ever with the lack of supply of new listings conspiring to make a hot market even hotter. CREA said Thursday the average sale price of a house in Canada reached $331,602 last month, a 13.6% increase from a year ago. There just isn't enough new product coming to market to meet demand. Last month, there were 80,816 new listings across the country, compared to 97,657 a year ago. The supply problem is happening in almost every major Canadian city. The same things continue to drive the housing market. Low interest rates, rebounding consumer confidence and improving overall sense of economic security.

Our local statistics tell the same story. Sales figures are up over last year in every category except active listings. The inventory of homes for sale in Guelph is down 27% from November 2008.  The law of supply and demand has the homes that are coming to market selling in 34 days on average and a stunning 27% of Guelph MLS listings sold in October went for full price or more. Contrary to popular belief, November and December are among the best months to sell your home because there usually aren't as many homes on the market to compete with. True this year only more so.  I expect this trend to continue through November and the first half of December before things shut down for the holidays. What happens January 1st is anyone's guess.