Home sales in Canada’s two largest real estate markets soared in July, adding to evidence that the Canadian housing market is so far defying predictions of a correction.

Sales in Toronto, the largest market, rose by 16% from a year earlier to 8,544 units, while Vancouver’s existing home sales rose 40%, the cities’ real estate boards reported.

The average sale price in Toronto rose 7.9% while in Vancouver they soared by 13% compared to a year ago.

Canadian Finance Minister Jim Flaherty tightened mortgage rules for a fourth time last year amid concerns that an over-supply of new condos would lead to sharp price declines.

The average sale price in Toronto rose to C$513,246 (£320,000) in July from C$475,523 a year earlier, the Toronto Real Estate Board said.

The average sales price in Vancouver is even higher at C$758,730 (£474,000).

Calgary’s real estate board has just reported that home sales in that city rose by 17% in July, with average prices rising 8% from a year ago, according to a report by Bloomberg.