Canada's housing market sizzles on

The average selling price of a resale home in Canada jumped to a record high of $268,215 in February, up 3.8 per cent from January's figure.

Data from the Canadian Real Estate Association (CREA) showed the resale housing market is showing little sign of cooling down.

The $8,000 increase in the average sale price in just one month was the second largest monthly gain in the last 15 years, CREA said. The data were compiled from 41,555 MLS sales last month, up slightly from January's sales activity.

The association said the largest monthly price gains took place in British Columbia, Alberta, and Ontario. In addition to setting a national price record in February, average prices also set records in British Columbia, Alberta, Manitoba and Ontario.

On a year-over-year basis, prices were 12.3 per cent higher. The gains in British Columbia were the most pronounced the average MLS price was $380,420 in February, up 22 per cent from February 2005. Alberta's average selling price grew more than 21 per cent to $256,125.

"The resale housing market remains tightest in Western Canada," said CREA chief economist Gregory Klump, in a release.

"A shortage of homes available for sale and the continuation of strong resale housing demand in Western Canada are resulting in substantial price increases there," he said.

But Klump predicted that rising interest rates and rising home prices will likely slow the number of sales this year.

The following are average MLS selling prices for each province in February (with February 2005 figures in brackets):

• British Columbia: $380,420 ($311,563)
• Alberta: $256,125 ($210,519)
• Saskatchewan: $125,662 ($120,723)
• Manitoba: $142,287 ($120,250)
• Ontario: $277,927 ($259,581)
• Quebec: $188,056 ($176,360)
• New Brunswick: $125,329 ($112,176)
• Nova Scotia: $166,320 ($162,206)
• P.E.I.: $123,567 ($103,722)
• Nfld. and Lab.: $134,085 ($132,044)
• Canada: $268,215 ($238,778)