My thoughts and views on the market as we enter the Fall of 2010.

• Right now the market appears balanced.  I.e. good home, good asking price and there will be satisfied seller and buyer
• It seems that banks may have prematurely started moving to higher mortgage rates and are now scrambling downwards so as not to kill the momentum.
• There is an opinion that many of the purchasers who backed out in late 2008, will enter the fall market of 2010 to take advantage of the balanced market and excellent mortgage rates.  
• Although – depending on area and type of homes –the number of sales have fallen over the last three months in comparison with same period(s) last year  approx by 20-30%, while the sales price has kept on rising.  HOWEVER- according to the TREB stats that  I reviewed, the average sales price overall for GTA has started moving downwards by 2%-3% each month since June this year.   But, the price momentum is still positive i.e. the increase in average price this month compared to the average price same month last year.  If sales numbers decrease, matched with decrease in average sales price and accompanied by a negative price momentum, we will be able to see a definite downturn.   However, with the monthly average sales price already dipping below the trend line - right now - the slowdown is evident.  Sep-Oct will indicate more clearly what to expect as we go forward. 

Is it a good time to buy?  I would say that some market-correction is due.  Barring some significant event, my guess is that at worst, it will probably plateau for a short period, but not dive.