The number of houses sold in Canada broke the half million threshold at the end 2007, up 13 per cent on the number sold in the previous year, and average property prices appreciated 9 per cent to CDN$303,000, up around CDN$25,000 from 2006.

Western provinces experienced the best growth due largely to the economic prosperity enjoyed by oil-rich areas of Alberta. The Canadian cities of Vancouver, Saskatoon, Regina and Winnipeg also enjoyed increased interest from property buyers thanks in part to in-migration as people fled Alberta's too-hot-to-handle prices.

RE/MAX predicts that 2008 will see sales retreat to 500,000 units nationally, while average Canadian property values are forecast to continue to rise, increasing by six per cent to CDN$321,000 by year-end.

Alberta and Saskatchewan are expected to continue to experience price rises, although at a reduced percentage rate likely in the five to eight per cent range.

Ontario is also predicted to perform well in 2008. The Canadian industrial base has a large diverse population and the cultural and social amenities which make it attractive to many foreign property investors and new immigrants.

Being home to some of the Canada's biggest ski resorts, British Columbia is likely to maintain its appeal for ski property investors. The area around Whistler has already attracted a huge amount of interest and Canadian property investment in the lead up to the 2010 Winter Olympics, which will be held at the resort.

Atlantic Canada also offers an attractive proposition to the overseas investor due to ease of access from Europe, and considerably cheaper prices than the west of the country.

Average house prices for Atlantic Canada in October 2007 were CDN$172,942 (£88,165) in Nova Scotia, CDN$313,442 (£159,791) in Newfoundland and Labrador, CDN$138,338 (£70,526) in Prince Edward Island and CDN$131,419 (£66,989) in New Brunswick.

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Article first published 07 January 2008