Greater Toronto Area 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 affected" 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.

There is no question this will be a difficult year for the housing market as well as the commercial real estate market. Job losses for the GTA could mount to 125,000 over the next 12 to 18 months, according to a report by housing analyst Will Dunning. "We are probably at the edge of a rapid drop in employment," Dunning said. "That added negative factor will accelerate, deepen and prolong the recession."

Dunning said he remains convinced the condo market is the most vulnerable to a downturn, with 36,700 units currently under construction in the GTA. In central Toronto, resale listings, as well as rental condo listings, are up 75 per cent from a year ago, he said. "I've been saying for a long time that there is excess investment in the condo apartment market and the reckoning has been deferred due to delayed completions," Dunning said. "This has allowed the supply pipeline to get very fat. The reckoning has now begun."