Record Activity in Canada's Home Markets

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Canada's major housing markets reported record home sales activity in July, with higher average prices, despite analysts' warning of a growing bubble. 

Toronto, the country's largest market, reported 8,544 residential sales in July, a 16 percent increase from last year, according to the Toronto Real Estate Board's latest report. Toronto also reported an increase in new and active listings, 

"Last month's sales represented the best July result since 2009 and was the third best July result on record," board president Dianne Usher said in the report. "Despite recent increases in average borrowing costs, home buyers are still finding affordable home ownership options in the GTA."

Worried about price decreases due to an oversupply of condos, last year Canadian Finance Minister Jim Flaherty tightened mortgage rules for a fourth time. However, a growing number of households are now getting deals done as they return to search for homes.

The average selling price in Toronto for July was $513,246, an eight percent increase from last year. 

The greater Vancouver area also reported record activity for July. With 2,946 residential property sales, greater Vancouver had the highest selling activity in July since 2009, according to the city's real estate board. 

"Demand has strengthened in our market in the last few months, which can, in part, be attributed to pent-up demand from the slowdown in sales activity we saw at the end of last year," Sandra Wyant, REBGV president said in the report. 

The sales activity for July represents a 40.4 percent increase from last year and an 11.5 per cent increase compared to last month.

A benchmark price index for Vancouver stands at $601,900 for July, a 2.3 percent decrease from last year but a 2.3 percent increase over the last six months. 

Calgary reported 2,267 total home sales for July, a 17 percent increase from last year, according to Calgary's real estate board's latest report.