The pace of economic recovery has slowed (not stalled). The Bank of Canada has more flexibility with the direction of interest rates. The market consensus is for fewer rate hikes than originally expected through the end of 2013.
•The average price level, on its own, does not tell us whether or not home prices will fall. Historically the best determinant of price growth or decline has been affordability. Right now affordability remains in check, thus the current average selling price is justified.
•The condo apartment market has tracked trends in the market as whole quite closely. The one wildcard for condos is new apartment completions, but the apparent ceiling on the number of completions each year will help mitigate the risk of a flood of listings into the market. tHERE WILL BE OVER 18,000 COMPLETION SIN THE GTA IN 2013 which will have a profound affect on prices in the GTA.