Are things crashing like the US? The short answer is no. First, we did not have homes prices zooming upwards as free mortgages and speculation drove the market. Second, wages still growing, interest rates are low and going lower, credit is readily available.

The Canada Mortgage and Housing Corporation's (CMHC) GTA Housing Market Outlook for 2009 predicts moderation in the existing homes market. Prices will decline slightly and inventory (listings) will rise. According to the Toronto Real Estate Board (TREB) sales are down significantly from 2008 and prices have weakened. Are things falling apart, like the US? The short answer is no.

A more detailed answer includes the fact that the total number of employed is up, even though the number of people who wanted jobs (unemployment) has also increased. Right now over 90% are still working. Wages are rising, although at a slower pace, fast enough to keep up with the moderate inflation predicted. The Bank of Canada lowered rates and will continue to do so, in fact TD estimates they will go as low as 0.5%. The Federal Government introduced a stimulus package and Home Renovation Tax Credit. Assuming the States can get their act together, these local actions all point to an early bottom in this real estate cycle.

The existing single-detached family home is by far the most popular. If this is your style, it could be a good time to start thinking about a move up. Your home's value may have gone down slightly, but the one you want may have come down even more in dollar terms.

These charts from TREB give a good look at what has happened to single family homes in the past year. Could be an opportunity, with more inventory than the same time last year; prices leveling off; and, sales down there are bargains out there.