The survey of housing prices in major centres across Canada was reported by Royal LePage Real Estate, a leading firm in the country.

Housing analysts agree that Canadians tend to buy their homes in April and May, as the winter ends. When the snow and the ice disappear, Canadians emerge from their homes and start looking for a different shelter.

The housing market slumps most dramatically in December and January, as Canadians take shelter from the weather and leave the big capital decisions until spring.

The result this year was that centres like Toronto, Edmonton and Regina recorded their best sales ever. Surprisingly, demand exceeded the housing that was available.

Phil Soper, president and chief executive of Royal LePage, said that 'demand has remained steadfast and strong in the past several years, with vigorous activity only limited by supply'.

Toronto, which is Canada's largest real estate market, recorded increases of 9.1 per cent for a standard two-storey house and 4.6 per cent for a detached bungalow.

Price increases in the housing market mirror the cost of borrowing in the bond market, and the expectation of higher interest rates will push mortgage rates higher. Inevitably, interest rates in Canada will reflect the United States economy.

The US Federal Reserve recently increased its short-term interest rate in an attempt to keep the economy and inflation balanced, promising that future increases would come at a measured pace.

As was to be expected, the Bank of Canada held its short-term interest rates steady last month but gave a warning of upward pressures on inflation in the near future.

For those who are intimidated by the constantly rising prices of the housing market, a consolation of sorts came in the news that a waterfront property in West Vancouver sold for C$1 million (HK$5.9 million) less than the owners had asked.

Instead of $18 million, the 11,000-square-foot house with 200 feet of shoreline sold for a mere $17 million.

As well as a view that stretched from Vancouver's Lions Gate bridge to Vancouver Island, the property has five full bedroom suites, a separate guest suite and maid's quarters, an office, a wine cellar and a boathouse, as well as a four-car garage, a swimming pool and a waterfall.

The concern for the neighbours in West Vancouver, and the curiosity for the citizens of Vancouver, is that they do not know who spent the $17 million for the property on Radcliffe Avenue.

One rumour is that the new owner is Canadian rocker Bryan Adams, himself a Vancouver boy, but Adams is living in London and has given no indication that he is eager to leave.

Throughout Canada the average price increase for a detached bungalow rose 6.8 per cent to $249,200 and the price of a two-storey home increased by 8.5 per cent to $311,509.