Canada’s housing market got off to a strong start in 2007 with average prices rising in all major markets, according to a report released today by Royal LePage Real Estate Services.

It said a combination of consumer confidence, moderately low interest rates and improved affordability led to greater sales in the first quarter.

Royal LePage said the highest average price appreciation was in standard condominiums, which rose 16.3% to $230,146 year-over-year.

Detached bungalow prices rose 14.9% to an average $316,993 and standard two-storey properties increased 11.8% in price to $378,148.

“The strength of last year’s housing market has carried into the first quarter of 2007, creating a robust market, chock-full of activity with house prices rising in all major cities,” said Phil Soper, president and CEO, in a news release.

Fuelled by the energy sector, Alberta’s economy continued to show extremely high price appreciation and that spilled over into Saskatchewan. Year-over-year condo prices rose 72.1% in Edmonton, 38.9% in Calgary and 42.9% in Saskatoon.

Royal LePage said more moderate increases were noted in the central and eastern regions of the country.

Sustained growth in the urban centres and surrounding suburbs of most of the country’s major cities is expected to characterize the real estate landscape in 2007.

Buyers’ demands for affordable housing and the desire to be near the city’s core continues to fuel expansion in the condominium market, while suburban neighbourhoods continue to develop as they attract a large part of the population growth.