Positive conditions such as a very strong global economy and unemployment rates falling have all contributed to an exceptional decade of Canadian home prices.

According to a Scotiabank economist looking back at the past 50 years, home prices rose on average between 2-2.5 per cent annually in each decade.

But, home prices rose an average of 5.2 per cent each year between 2000 and 2009 leading to the current elevated prices.

This year Scotiabank forecasts 10 per cent sales growth to 510,000 home sales and average home prices to increase about 8 per cent to a record $345,000.

The Toronto Real Estate market will also see the same positive trends in sales and price but a slowing down of the market midway through 2010 and carrying through to 2011.