Resale housing activity across Canada strengthened in February compared to the same time last year, with the average housing price rising 10 per cent to $311,101, according to the latest report by the Canadian Real Estate Association.

While seasonally adjusted home sales on a month-over-month basis were slightly weaker than in January – 29,955 units compared to 30,267 a month before – unadjusted unit sales and dollar volume were stronger than a year ago. The value of home sales rose 15.7 per cent from January of last year to $9.1 billion.

Seasonally adjusted home sales were at their second highest level for any month on record in February, just one per cent below the highest-ever level recorded in January of this year. The small decline was mostly due to fewer sales in Toronto, although cities in the west saw higher activity in February.

The average housing price in February was the highest-ever monthly level, with record average prices being achieved in Calgary, Edmonton, Toronto, Hamilton-Burlington, London & St. Thomas, Ottawa, Quebec City and Saint John.

"Recent mortgage interest rate cuts, together with a strong job market and rising incomes, will help to keep homebuyer sentiment upbeat," said CREA chief economist Gregory Klump in a statement. "Resale housing activity in the first quarter is on course to set a new quarterly record. With momentum for resale housing activity showing few signs of fatigue so far, the spring home buying season this year may be one for the record books."

Seasonally adjusted new listings fell 3.2 per cent month-over month to 46,323 units, while unadjusted new listings fell 0.5 per cent from a year earlier to 45,835 houses.

The drop in new listings, accompanied by a smaller decline in sales activity, meant that the resale housing market is now at its tightest level since September 2005, especially in the west.