Canada’s resale housing market for July posted the largest year-over-year gain in two years, with Western homebuyers leading the way, according to statistics released Friday by The Canadian Real Estate Association. For the first time on record, sales of existing homes climbed to more than 50,000 units for July…

Demand is rebounding sharply in some of Canada’s priciest housing markets, skewing the national average price upward, with the average price rising 7.6 per cent from one year ago to $326,832.

Source: Toronto Real Estate Blog

Toronto real-life anecdote:
A friend of mine sold a condo this July for quite a bit more than what he paid for it 2 years ago.

Seems now is the perfect storm of low interest rates, pent up demand from winter (people got scared by the crisis/recession talk and weren’t willing to sell at firesale prices) and still, very few listings, especially downtown.