The statistics show the sales in the residential resale market are strong in the early stages of 2007. However, there are a couple of things happening that are somewhat unusual. I showed 7 houses two Saturday's ago in the $250,000.00 range and 5 were Powers of Sale. I might have seen one last year. Looks to me like some first time buyers overextended themselves financially. Coupled with that were some eager lenders who were overzealous in their desire to "place their money".
Secondly, the buyers are showing signs that "reason" is prevailing over "emotion". I had an offer on a lovely house along the Danforth two nights ago. It was tidy, presented well and had a private drive. The drive along would attract a lot of attention but the great house was a bonus. It was listed at $299,000 and not surprisingly, it received 14 offers. Most of the offers were in the range of the listing price. The winning bid was $350,000.00. It's my view that a year ago under similar circumstances, the final bid would have been higher than that. As it is, the buyer bought a lovely home and paid a fair price. We're all hoping that the era of the silly prices is over.