The Toronto Real Estate Board  reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record.. The average transaction price for March  was $434,696. The average price for the first quarter was $427,948.
The question I am asked most often is "How long can this continue?" 

Pulling my scratched, battered and somewhat unreliable crystal ball out from under the bed in the spare room I prognosticate that even with the forthcoming rises in interest rates, HST, Government meddling in the operation of a free, open and competitive market that the fundamental soundness of the Canadian Real Estate Market will triumph and that the impetus from the strengthening economy will be sufficient to ensure prosperity for all. For the next cycle. 

Prices will continue to improve but at a more measured pace as the increase in  active listings continues (up 42% from a very low March 2009) to balance the market. Funny how that works. That Adam Smith knew a thing or two.