In December, the real estate market continued its strong pace with the sale of 5,541 single family homes, bringing the 2009 total sales to 87,308, a 17% increase over

2008 and representative of a very healthy market. The average home price rose by 4% in 2009 and ended the year at $395,460.

2009 started off very gingerly for investors and home buyers as the slow markets in the United States created an atmosphere of doubt and fear in the Canadian

economy, and the resulting postponement of home buying decisions. By April, those concerns proved to be unfounded and our real estate market soared as buyers

flocked to buy real estate and that pent up demand resulted in bidding wars for homes and price increases.

I believe that our strong market will continue for at least the next six months as buyers will be pushed to buy before July 2010 to avoid the new Harmonized Tax

(HST) the government has announced. That tax will add several thousand dollars to the cost of buying and selling a home after July 2010 and an increase of 7% 0n the sale price of new construction homes and condominiums. The government has indicated that there will be a period of time where the tax will be graduated for home under $400,000, but the bottom line is new construction homes will be increasing by 7%. That will drive more buyers to resale homes and cause those prices to increase as well. July, August, September sales should be a little slower aspeople get used to the new tax and buyer demand builds up again.

All in all, it is a great time to buy NOW! We are in the winter market, and once the snow melts, there is going to be greater competition for housing and a limited supply

always means higher prices. If anyone is remotely thinking about real estate, now is the time to act.

If you have any questions or concerns, please give me a call, I would be happy to answer all of your questions.

I would like to ask you for a favour in return. If you know of anyone thinking of buying or selling, please let me know, I would love to help them, and as your friend I will take extra good care of them.

Best wishes to you and your family and may 2010 be a Majestic year for you!

Your Friend in Real Estate,