06/16/2014 09:17 EDT | Updated 08/16/2014 05:59 EDT

Average house price in Canada rose 7.1% to $416,584 in May

The average resale price of a Canadian home continued to march higher, with the national real estate association showing it hit $416,584 in May, a rise of 7.1 per cent compared to the same month a year earlier.

The Canadian Real Estate Association said sales activity in Toronto and Vancouver continue to skew the average price higher. If those two cities are stripped out, the average Canadian home is worth $336,373 while the year-over-year increase shrinks to 5.3 per cent.

Beyond prices, there are signs that the real estate market is red hot in terms of the number of homes being sold.

The volume of sales rose by 5.9 per cent from April to May, the biggest monthly jump in almost four years — although spring is traditionally the strongest time of the year for home sales.

Home sales were higher in 80 per cent of all local markets in Canada, CREA said.

More to come