With the impending return of warmer weather, the migratory birds and our lengthening
daylight hours, the Central Toronto Real Estate Market continues to gain momentum. We
currently find ourselves in the crest of the first bell curve of the annual real estate cycle. The
Toronto Real Estate Board reported that March 2011 was the second best March on record,
even though it was 11% less than last year, in terms of the number of transactions.
Historically, it is during this time of the year, after the passing of the private and public school
March breaks, that we start to see increased activity in the market. Specifically pertaining to
this year, we have witnessed a shortage of listings, and while buyers have been plentiful, many
have been unsuccessful in fulfilling their needs and requirements.

In economic terms, demand exceeded supply. In light of the supply-demand inequity, the
market shifted to a sellers' market, specifically for those properties that were priced properly.
The market was tempered somewhat by the ever looming threat of rising interest rates
during this period. In the last few weeks, we have started to see listing inventories grow to
levels not seen in quite some time. Well priced properties are often going in competition as
many buyers have waited on the sidelines patiently waiting for properties meeting their
criteria. Sellers with over-priced properties are finding their homes languishing and often
stagnating.

Pricing strategy is a key element in the successful sale of properties in the Central Toronto
® market. Market savvy listing REALTORS understand and counsel their sellers' on the
strategic importance of proceeding with offer presentation dates based on individual
property variables. On the other side of the equation, the media and the Toronto Real Estate
Board have been educating buyers on the importance of a signed Buyer Representation
Agreement (B.R.A.) ensuring their interests are being looked after and their agency
representation is complete.

On a macro-economic level, according to TD Economics, the Bank of Canada does not
appear to be under pressure to resume interest rate increases in the near future.
the impact of higher inflationary costs are being watched very closely. TD Economics 

predicts that the next round of interest rate increases will likely occur in July.
From a Central Toronto real estate market perspective, we are still in the midst of historically
low interest rates; are still a destination city for immigrants, migrants and investors looking for
a safe haven; and our house prices are globally well situated. The prognosis is good for a solid
spring market in Central Toronto.