It's spring 2012 and we're up to our ears in multiple offers again. The Cambridge market is very strong and our neighbours in Guelph are selling anything decent same day!!
It's anybody's guess where it will end as CMHC didn't forecast this at the fall conference 2011.
Rates are still low with 5 year money at 2.89 and 10 year at 3.89. People are starting to consider 10 year mortgages even though about 70% of homeowners with 5 year mortgages sell before the 5th year and have to pay a penalty to do so.
Note that there is no interest rate differential penalty on a 10 year mortgage after the 5th year