Canada, Eh? How much can an igloo cost?

Smokey is concerned that many of her readers may have incorrect opinions about America's northern neighbour as it relates to real estate (and lots of other topics as well). In the finest Don Quixote tradition, here is her attempt to bring some real numbers about real estate from the Atlantic to the Pacific on the Canadian side of the border.

Residential real estate prices have continued to climb across Canada with the hottest markets in the West being driven by the energy boom, according to a third-quarter 2005 survey by Royal LePage Real Estate Services Ltd.

"It's incredibly busy," said Elke Babiuk, a real estate agent at MaxWell Canyon Creek of Calgary. "We're supposed to be in the slow period of the year, but it's not happening."

People are attracted to Calgary, she said, where there are job opportunities, house prices are moderate and, as an added bonus, there isn't any sales tax.

The average price of a house in Calgary ranged from $252,411 to $264,389, according to the survey.

"High energy prices are fuelling sizable gains in the mid-western provinces; however, most of these markets have only started to experience significant above-average growth in the past few quarters, and as a result, prices remain relatively affordable," said Phil Soper, president and chief executive officer of Royal LePage Real Estate Services.

But there could continue to be upward pressure in prices. "Builders cannot and will not build to satisfy short-term demands," Mr. Soper said. There could also be a shortage of skilled trades for construction and even materials, he added.

Meanwhile, rising inventory levels have slowed the pace of growth in major metropolitan centres such as Toronto, Montreal and Vancouver, which have seen some of the biggest price increases nationally, according to the survey.

The average price of a two-storey home in Canada increased 6.7 per cent to $324,066 from a year ago. The average price of a bungalow was $265,405, up 7.4 per cent, while the cost of a standard condominium increased 6.8 per cent to an average price of $185,195.

In Toronto, the average price of a two-storey house increased 4.8 per cent to $459,250 while a detached bungalow climbed 6.4 per cent to $364,111 and condo prices registered a 3.6-per-cent gain to $242,664.

Markets east of Manitoba, except New Brunswick, continue to experience slower growth than in the West.

Winnipeg is one of the hottest markets in the country, with double-digit price increases in all three housing types, despite rising inventories.

"We're selling them in days instead of months," said Jim Van Wyk, the owner of Elite Real Estate Inc., an independent real estate agent in Winnipeg.

The market is being helped by a strong economy, population growth and low interest rates, he said. "Winnipeg is also playing catch-up."

The average prices of a two-storey home, a detached bungalow and a condominium in Winnipeg were respectively $179,875, $191,571 and $95,667, according to the survey.

Double-digit house price increases were also recorded for Saint John and Moncton.

For the third consecutive quarter, Victoria showed the largest price increases in Canada with condominium prices increasing 31 per cent to $220,000 as baby boomers look for a place to retire with good weather and scenic views, said Royal LePage Real Estate Services. The price of an average detached bungalow increased 18.4 per cent to $348,000.

The residential real estate expansion has continued for more than five years and "there is little evidence of an economic bubble in any of our major cities," Mr. Soper said.

Strong summer activity

'Robust economic conditions' fuelled strong growth in average housing prices in major markets across Canada, a report by Royal LePage says. The numbers show average prices for two-storey homes in the third quarter of 2005, and the percentage increase over the same period in 2004.

• HALIFAX: $173,333, up 6.9%
• CHARLOTTETOWN: $141,000, up 3.7%
• MONCTON: $127,000, up 18.7%
• SAINT JOHN, N.B.: $142,900, up 14.9%
• ST. JOHN'S, NFLD.: $142,667, up 7%
• MONTREAL: $203,688, up 5%
• OTTAWA: $271,429, up 4.2%
• TORONTO: $364,111, up 6.4%
• WINNIPEG: $191,571, up 10.9%
• SASKATCHEWAN: $156,083, 8.2%
• CALGARY: $252,411, up 7.9%
• EDMONTON: $194,857, up 9.1%
• VANCOUVER: $499,667, up 8.8%
• VICTORIA: $348,000, up 18.4%