Prices in Toronto, including new Condos are expected to fall 4 per cent according to Royal Lepage, a leading Real Estate company.

Royal Lepage expects the average Canadian home to drop three per cent and sales to fall  three and a half percent in 2009.

In their Real Estate release, they said their was emotional reaction to economic and political instability leading to a drop in the market in late 2008.

Some recovery is expected in the later part of 2009 with some parts of the country like Vancouver declining more than average, Toronto to decline four per cent and others like Ottawa and Montreal to stay flat.

Cities like Regina and Winnipeg are forecast to see moderate price gains over the next year, a very good step in the right direction for the Canadian Real Estate Market.