Canada's cool housing market is beginning to show signs of warming, but the coming Ontario harmonized tax will cause problems for builders and for home buyers as well.

Scotiabank reported recently that the Toronto oversaturated Condominium market is showing hints of a turnaround in 2009. A rise in demand combined with fewer listings has restored more of a balance to the Toronto Condo Market.

Developers are planning on building 18,000 Toronto Condo suites this year, down from 24,000 in 2008. TD analyst Paul Gauthier expects 11,00-0 to 13,000 units built in 2009 with a median price of $230,000 to $250,000.

All the Bank analysts predict the HST is a major concern and will impact the Toronto Real Estate and Condo Market negatively if this new Tax goes through leaving middle-class buyers with even fewer options.

Beginning July 2010, the HST will be applied on all new homes with anything priced over $500,000 charged the full 13 per cent tax. This new Tax is going to have far-ranging effects on the Toronto Real Estate Market.