Existing home sales in the Toronto area came in at 6,681 in October, down 21% from year-ago levels.  Meanwhile, the supply of backlog is growing inexorably — active listings surged 21% to 18,305 units from 14,771 in October 2009.  The average number of days that homes for sale have been sitting on the market is up 19%, to 31 days, versus 26 days a year ago.  Average selling prices are still 5% higher today than they were a year earlier, but the bloom is off the rose and that pace is poised to reverse in coming months.

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In this issue of Breakfast with Dave

• While you were sleeping: risk trade is clearly on again — equities are surging across the globe and bond markets are getting clobbered; U.S. dollar is breaking down; commodities are well bid

• Thoughts on QE2: the Fed is clearly trying to reflate asset values in order to generate a more positive wealth effect on personal spending and pull down the cost of debt to re-ignite business “animal spirits”

• More thoughts on QE2: in some respect, the Fed did as little as possible yesterday. What good is another handful of basis points decline really going to do for the economy?

• When bullish is bearish: chasing the market is human nature, but this behaviour is very important for investors

• Long/short strategies from the Challenger report: the Challenger layoff/hiring report contains some nice details at the industry level

• ADP private payroll result was better than expected; but we are not that excited

• U.S. service sector humming

• Factory orders point to upward revision to U.S. Q3 real GDP

,,,,read summary HERE

....read Full Report HERE