Cindy Haggerty

The Toronto real estate market is sizzling once again with a record amount of homes being sold last month in an upward trend offcials say will last all year.

The sale of homes in July rose 28.8% over July 2008, with a record 9,967 sales, the Toronto Real Estate Board said yesterday.  And the strong says will continue for the rest of the year, said Jason Mercer, the board's senior manager of market analysis.

"After looking at all the numbers, we see a better second half in 2009," Mercer said.  "There is now more confidence is home buyers."

He said the home buying frenzy didn't materialize last spring as buyers were uncertain about the economy.  Mercer said the average price for July's transactions was $395,414, up by 6% compared to the same time last year.

ECONOMIC GROWTH

"The real estate sector has been one of the sectors making a positive contribution to economic growth in the GTA," he said.  "There has been activity due to the low interest rate environment."

TREB numbers show that 50,632 homes have been sold so far this year, which is 1.2% down from last year.

Realtor Shelley Porritt, of H.G Porritt Real Estate, said buyers ranage from first-timers to those moving into a bigger home.  "I can see the market getting just as busy or busier," Porritt said.  "People should get into the market while they can afford it."

Agent Norman Jaiparagas, of Sutton Group, said low mortgage rates are luring buyers into homes.  "Nowadays, you can buy a home for the same amount it is to rent an apartment," he said.