Lower Bank rates are quickly coming to an end as Banks increase their lending rates in the recent weeks.

Some Economists say that the higher rates may not immediately slow down the Toronto Housing Market.

They feel that even with higher Mortgage rates, buyers will rush into the Market to beat the HST that begins July 01.

The Teranet-National Bank National House Price Index reported a 0.7 per cent increase in house prices in Toronto for the month of January.

Other Cities making up the Index:

• Vancouver up 0.9 per cent
• Halifax up 0.6 per cent
• Montreal up 0.4 per cent
• Ottawa up 0.3 per cent
• Calgary down 0.5 per cent

Not one of the six larger cities in the House Price Index showed a rise of more than 1 per cent.

What will happen in the coming months will remain to be seen but the added Government restrictions and taxes just might be the tipping point of a balanced Toronto Real Estate Market for 2010.

Pictured above are Toronto Downtown Condos on Bay Street.