Along with the weather, the real estate market seems to be getting better.

Stale homes which have stayed the course through the sleet and snow are now hanging sold signs on the front lawns. These properties that have sat for 6 months are now selling in multiple offers. It is almost like a spoiled child syndrome. No one wants to play with it until another child indicates that they like it.

It is not just rumours that properties are selling in multiple offers. I have been involved in two recently and have talked to many colleagues who are finding the same thing. One agent had 11 offers registered on a place in midtown Toronto. That means there are now at least 10 unsatisfied people who are ready to jump on the next ‘right thing’ in Toronto.

We are not seeing the builders or flippers out in droves but they are starting to come out of hibernation. What does this mean? If they get started up again we will definitely see the return of central core Toronto real estate, especially if they can get access to this low interest money.

We were never too far down in prices in the central core, 5%-8%. The media mainly focused on properties that were grossly overpriced in the first place. People overvalue their homes in both good and bad economies.

Are these buyers all just optimistic suckers? Or are they the last of the people who will be getting the “good deals”? The economy seems too fragile right now to set stand in one camp or the other.

I must say that I am not so naive as to think we are in the clear, but I am certainly enjoying the sun while it is shining.

There doesn’t seem to be imminent doom but the fall out of GM and Chrysler has yet to be seen. These are good reasons to keep your money invested in bricks and mortar. People will always need shelter to buy or rent.

I will continue to say that right now is a great time to sell, especially if you are moving laterally, moving up or diversifying your portfolio of real estate.

If the market keeps trucking along like it has this spring Toronto proper seems like it will tighten up, if you look hard there are still some really good prices on properties right now.

Another cause to applaud is the government’s reluctance to change Canada’s immigration policies. Immigration has been a staple when it comes to the health of Toronto’s real estate. Of the 250,000 permanent landed new-Canadians 60% of them move to the GTA. That is exactly what we need to keep stimulating our housing market.

Canada has embraced immigrants in good times as well as bad and has been rewarded with the newcomers strengthening the country’s economy. A lot of newcomers generally are more inclined to own homes. People from Hong Kong, China and India all put a very high importance on home ownership. Quite often their first order of business is to buy a home.

Toronto real estate seems to be in a very healthy space right now. The whole World’s economy seems to be fragile but at least it appears that we are moving in the right direction.

Decreased consumer confidence in the real estate market has created a decline in home sales worldwide, however the Greater Toronto Area has made a recovery from the economic downturn. The Toronto Real Estate Board reported a 19% increase in the purchase of resale houses from November 2007 to November 2008, and a 3% increase in the purchase of new houses from May 2008 to May 2009, showing confirmation of rising consumer confidence in the investment of funds in Toronto residential real estate. With indications of economic recovery on the horizon, many people are looking at investing in both houses and condos in the Greater Toronto Area.

When adding up the expense of buying a new home, closing fees are additional factors which need to be taken into account. These comprise of appraisal of the real estate, home inspection, mortgage fees, agent commissions, and documentation fees. A large consideration among many in Toronto’s real estate industry, however, is tax, specifically the July 2010 introduction of the HST, or Harmonized Sales Tax.

The HST is being established as a combination of the 5% GST and the 8% PST, and is supposed to be added to new and resale property closing costs, in addition to the purchase price of a new home. This will remove the current exemption from the PST for new property purchases. The Ministry of Revenue has released new documentation regarding the HST, specifically addressing an intended rebate of 75% of the provincial portion of the new unified sales tax, up to a maximum of $24,000. This rebate would be received either at the time of sale, or, as is presently the case with the GST, through submitting a form to the Canada Revenue Agency.

Once a budget has been decided and a target purchase price calculated, the buyer must decide on the type of real estate desired. Both the advantages and disadvantages of single family houses and condos should be analyzed in order to come to the right conclusion for the buyer.

First, the buyer should consider value for money. Generally, a home will have greater equity in the future, and a greater resale value. Rent is often greater for houses than condos. Condominiums generally charge fees that go to an association. Because of this, the return on investment can be bigger on houses.

Location is another issue, determined by the desires of the buyer. A buyer seeking property in downtown Toronto may find it difficult to find a home that matches his or her needs, whereas condos are more plentiful.

A final point to consider is the commitment of time on property repairs. In a home, the maintenance and improvements are the sole responsibility of the owner. In a condo, the corporation takes care of most, if not all, of the building repairs.

The Toronto residential real estate market has a lot to offer new investors, and effective preparation and the in-depth market research can help buyers bypass the problems that are often be associated with a real estate transaction.

Toronto is Canada’s most promising city. It has a lively culture, impressive architecture, a diverse history and an educated, affluent population. The real estate market in recent years has been largely immune to the foils experience in other parts of the country. For the most part, residential and commercial properties maintained or gained ground in recent years.

But since 2007, when the rest of the country was hardest hit by a global recession, Toronto too deflated. No city is immune to a recession as powerful as the one now sweeping international locales. For a long time, though, Toronto seemed to defy the trend. It seemed to have the right combination of economic might and international attraction, coupled with gleaming new buildings and clean public parks.

So it was surprising and anticipated when the Greater Toronto Realtors last week released the bleak numbers on Toronto’s market.

Greater Toronto Realtors reported 888 sales during the first half of January compared to 1,776 in the first 15 days of 2008. “According to Statistics Canada the economic situation throughout Canada changed noticeably over the past year with job losses in the fourth quarter of 2008. Toronto is not immune to this, the GTA housing market has been impacted,” according to TREB President Maureen O’Neill.

The average GTA price mid-way through January is $332,495 from $367,574 during the same period in 2008. The median GTA price was $301,000 compared to 316,000 last year. “While sales have declined, listings have remained high. GTA home buyers have benefitted from more choice,” explained Ms. O’Neill. “Historically, increased choice in the marketplace has equated to a moderation in price growth.”

In January 2009, stronger declines in sales and prices were experienced in the City of Toronto. “Sales for January a year ago may have been elevated by the flurry of transactions completed before the city’s land transfer tax went into effect,” added Ms. O’Neill.

“The cost of home ownership in the 416 has increased due to the added land transfer tax many home buyers now face in the City of Toronto. Some households considering the purchase of a home in the City have either put their decision on hold or looked elsewhere in the GTA.”

As these numbers demonstrate, Toronto is precipitously close to its own real estate crisis. But it has certain things working in its favor. The first is the city’s beauty. While this does not stave off a recession, Toronto’s appeal entices tourism and a population that celebrates its surroundings. It is also a relatively new city—where its wealth and property developments are concerned. This allows Toronto to grow at a rate that is convenient for its welfare.

For many residents, the real estate slowdown is a good thing. Home prices will fall, and as much of the population has the capital, good credit and job security it takes to buy, many people are exploring new real estate options.