Tavia Grant

Globe and Mail Update Published on Monday, Feb. 08, 2010 8:35AM EST Last updated on Monday, Feb. 08, 2010 6:37PM EST

"Canadian house prices will hit a record $337,500, on average, this year and sales activity should also burst through an all-time high, a real-estate report predicted Monday.

National average home prices are expected to rise 5.4 per cent, with gains in all provinces, the Canadian Real Estate Association said. A rebound in activity in Canada's priciest markets, particularly British Columbia and Ontario, will juice gains.

Sales are booming too. National sales activity will reach a record 527,300 units this year – up a sizable 13.3 per cent from last year and 1.2 per cent higher than the previous peak in 2007.

Low interest rates are expected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, led by British Columbia and Ontario,” the association said."