The Globe and Mail reported last week that the "mood in Toronto's housing market is still buoyant," which could be the reason for the strong sales TREB reported in June (see our previous blog post Real Estate News: Sales up in June). In fact, perceptions related to the value of real estate in Canadian neighbourhoods are 10 percentage points above the six-year average.
The reason for this confidence is multifaceted. First, more listings are becoming available on the market. People don't feel the intense competition they once did, and can ease their way into a home search. Sellers are becoming more realistic with pricing, so overpriced homes don't sit on the market, making buyers more confident in their ability to buy a home. Similarly, people are spreading out their listings, trying to sell in the low times (such as July and August) to avoid increased competition in the peak months. Finally, low interest rates continue to make confident buyers.
For more information on confidence in the market, check out The Globe and Mail's article: http://www.