Toronto and Vancouver are two of Canada's biggest cities, and also the countries two hottest real estate markets. But according to an economist at TD Bank, the Toronto market is now out-scorching Vancouver's.

As TD Bank's Diana Petramala says in the Globe and Mail, the average price of a home in Toronto is up 18 per cent since last year and we hit record sales in August. "Toronto's appreciation in average home prices since early 2015 has now exceeded Vancouver's," she writes.

Thanks in part to a new land-transfer tax on non-resident buyers, she notes, housing prices in Vancouver a beginning to drop a bit.

But Toronto's are staying strong, for now. However, she says that we can't expect this trend to last forever. Our red hot market might start to cool some time next year when currently under-construction projects increase the city's real estate supply and mortgage rates are adjusted following longer term bond yields in U.S. markets.

Photo by Nick Kernick in the blogTO Flickr pool.