The Canadian Real Estate Association (CREA) reported 35,714 homes sold on the MLS  in October, up 4.6 percent from September. Theses resale homes rose in three-quarters of the markets recorded by CREA. This represented a 21.6 percent from resales a year earlier.

The number of new resales listings for homes, rose 1.3 percent in October from September.

CREA reported that the national Real Estate Market was in balanced territory since the Spring.

National average home price was $343,747, rising 0.7 per cent from a year earlier.

Canada Mortgage and Housing Corp (CMHC) is expecting housing starts to continue to moderate in the last quarter of 2010, and decline in 2011.

Housing starts are expected to total 186,200 units this year, then slip to around 174,800 units in 2011, the federal housing agency said.

CMHC also noted that the market conditions for sales of existing homes will remain balanced over the next two years as sales ease and inventory levels remain elevated.

It expects existing home sales of 440,300 units this year, dropping to about 438,400 in 2011. With an improved balance between demand and supply, the average price is expected to edge up in 2011.

The forecast compares to CREA's forecast, which earlier this month said it sees sales of 442,200 units in 2010, and then falling 9 percent to 402,500 units next year.

CMHC also said rising employment levels and low mortgage rates will continue to support demand for new homes in 2011, but new home construction will be at a slower pace.

It sees housing starts of 186,200 units in 2010, slipping to 174,800 next year

Sources: CREA, CMHC