The overall economy registered its worst performance since 1991 in 2009, remarkably sales in the Toronto and the GTA resale housing market will exceed last year's (2008) level. The 82,000 homes sold this year will be up seven percent from 2008 and well above the average for this decade. It is expected that sales will moderate slightly in 2010 to 78,000 units and become aligned with the historical ten-year average. Strong demand mixed with lower listings this year will elevate growth in average prices to 3.3 per cent. While the market will experience more balanced conditions in 2010, the average price will grow by five per cent compared to the 2009 average. The strength in resale activity in 2009 was a reflection of the aggressive interest rate cuts initiated by the Bank of Canada to stimulate growth in the economy. This policy response worked better than anticipated in the Toronto housing market. Record low borrowing costs and price discounts accumulated during the winter months lured droves of buyers into the market. Pent-up demand from first-time buyers priced out of the market in 2008 and future demand from move-up buyers capitalizing on the improved level of affordability brought sales levels to new highs this past summer. Incomes continued to rise in 2009 while the mortgage payment on an average-priced home in the GTA fell to $2,166-down from $2,407 in 2008. However, as the simulative increase in demand areas becomes satisfied and market conditions begin to reflect underlying economic fundamentals, sales will ultimately slow down. Affordability will moderate slightly next year, but will remain in check due to slow price growth and incremental interest rate increases. The average mortgage payment will rise to $2,318, still below 2008 and 2007 levels. This will provide some support for sales while income growth slows and employment challenges persist into 2010. Sales for single-detached homes will increase the most this year and capture more than half of all sales.