Both the number of homes sold in Canada and the average selling price rose sharply in October, with the average hitting $391,820.
The Canadian Real Estate Association said the number of homes sold in October was 8.3 per cent higher in 2013 than it was in the same month a year earlier.
While strong on an annual basis, compared to the previous month, home sales dipped by 3.2 per cent. CREA chief economist Gregory Klump says the month-over-month dip in sales was evidence that sales in the late summer and early fall were boosted by homebuyers with pre-approved mortgages jumping in the market before rates headed higher.
Check out our interactive map of real estate prices across Canada (CBC)
Now that interest rates appear to be holding, he says, sales in the near term may be held in check by homebuyers who are in less of a hurry to buy.
So far this year, a total of 402,299 homes have traded hands across the country. That's just 0.2 per cent below levels recorded in the first 10 months of 2012. After rising every year until 2008, annual home sales have been pretty steady since then.
The $391,820 average rose 8.5 per cent from last year. But CREA notes that if the large, active markets of Toronto, Vancouver and Calgary are removed from the equation, the average price increased by 4.9 per cent.
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