Resales of Canadian homes show continued strength in August

Resales of Canadian homes held steady and the national average price soared in August as the supply of existing homes for resale dwindled to a five-year low, the Canadian Real Estate Association said Tuesday.

A total of 42,483 homes traded hands across the country last month through the Multiple Listing Service, an increase of 18.5 per cent from August 2008, the industry association said.

The national MLS residential average price rose 11.3 per cent from year-ago levels to $324,779, a record high for the seasonally slow month of August.

Sales activity varied in various parts of the country, with about three-quarters of all local market showing increases from August 2008.

Toronto home sales rise yet again

Existing home sales in the Toronto area continue to surprise on the upside of analysts' expectations.

The Toronto Real Estate Board reported 8,035 sales in August, up 27 per cent from last year.

Average prices were also up by 6 per cent to $382,921.

"The increase in demand for existing homes has been widespread across different housing types and price ranges," said TREB president Tom Lebour.

By the end of August, year to date sales were up 2 per cent over the first eight months of last year.