TREB members recorded more than twice as many sales in November 2009 at 7,446 vs. 3,640 for November 2008. The 2007 level for November was also exceeded at 7,313 sales. This would lead one to wonder whatever happened to the recession, at least in the Greater Toronto Area.
Interest rates remained unchanged at the Bank of Canada's latest rate setting date of December 8th. As part of that recent release the BOC stated that "Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the 2nd quarter of 2010 in order to achieve the inflation target". In other words interest rates could be rising after the end of June 2010 which is also when the HST is due to come on board. Good reasons for prospective purchasers to buy sooner than later.
In Markham (N11) with only 286 active listings compared to 878 for Nov 2008 the lack of inventory has been driving prices up, especially in detached homes. The median price of a detached home in Markham (N11) has risen 11.2% over Nov 2008 and 8.2% over Nov 2007 with the respective prices being $530,000 Nov 2009, $476,500 Nov 2008 and $489,614 Nov 2007. A sudden flood of new listings onto the market could moderate this trend but so far any new listings are being gobbled up by the pent up demand. Buyers need an agent more than ever to negotiate on their behalf and get their offer to the table before their dream home gets sold!