The number of home resales jumped in August, in another sign that the economy is getting back on track.
More than 42,000 homes were sold in Canada last month. That's a jump of 18.5 per cent over last August, according to the Canadian Real Estate Association (CREA).
Prices on the national Multiple Listing Service (MLS) rose about 11 per cent over two years ago. The national average in August was $324,779. That is a record high for the month.
In Toronto, sales jumped 27 per cent; in Calgary, 17 per cent; and in Montreal, nine per cent.
But the hottest market in the country is Vancouver, where prices jumped a staggering 117 per cent. A bidding war for a 2,000 square- foot home in the city drove up the price to $1.1 million -- about $300,000 over asking price.
The price hike is because of a shrinking supply of homes being listed. There were fewer homes listed in August than in that month any time in the last five years.
Realtors in the city say that the phone keeps ringing.
"Low interest rates and affordability continue to attract home buyers to the housing market. Consumer confidence continues to rise, which bodes well for activity in the coming months," said CREA President Dale Ripplinger.
Every province in the country had a record bump in prices in August with the exception of Alberta.
While seasonally adjusted activity declined in August in Alberta and Quebec, prices are about 60 per cent more than the decade-low set in January.
"National sales activity in the third quarter is on track for a significant increase compared to the second quarter," Ripplinger.
Canadian housing prices and sales plunged last year after the recession began.
In response, the Bank of Canada and other central banks around the world are lowered short-term interest rates and are making it easier for commercial mortgage lenders to lend to consumers.
With a report by CTV's Rob Brown in Vancouver
