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Existing home sales haven't just recovered this year, TD Bank says they are better than they were going into the economic crisis.
"No other Canadian economic indicator has rebounded as sharply as sales of existing homes over the last few months," economist Pascal Gauthier wrote in his Resale Housing Market Outlook.
After declining by nearly a third in the second half of last year, the seasonally adjusted level of sales had climbed 61 per cent higher as of August.
"Not even the 50 per cent S&P/TSX rally since March can match such a robust recovery," he said.
Much of the rebound can be attributed to pent up demand, he said, although home buyers' appetites will likely be sated by November. The number of listings should continue to rise, however, providing sellers modest price gains through 2010.
The market will change in 2011, he said, as "eroding affordability" begins to weaken demand.
"Meanwhile, supply will have turned the corner and should increase," he said. "Both factors combined point to an easing in price growth [in 2011]