The prices in Central Etobocoke are still sky high, with a decent home running $600 to $800K. Homes in more exclusive areas run $1 to $3 million

Prices are easily up 15% from last year. This area appears to be its own island. I don’t quite get it since this area is not as exclusive (and much more middle class in sensibilities) when compared some areas in the core. I suppose buyers are attracted to the quiet living. With the exception of the East and West Mall areas, central Etobicoke has a very small population density, almost small “townish” for lack of a better word. It is very expensive.

I second your observations.

We are sitting in cash as well and are giving up on the search for a month or so. We are concentrating on High Park, Little Italy, Riverdale, Greek town, and the beaches. Yes there are still some sellers trying to get last year $$, but overall it has been treanding down.

By spring we should see an epidemic as more sellers clue in to the mess that the economy is in. Look for the prices to start going down at an ever increasing pace if the market does not pick up March/April. I do not see how it could.

Had 2 low ball offers refused in the last month but it is all good :) Just means that we can get more for the same $$ later….

That statement is misguided: many factors contributed to this bubble and to think otherwise is naive.