National MLS^® resale housing activity in October 2007 reached its highest level on record for the month of October and sales remain on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted sales climbed 1.3 per cent compared to the previous month to 41,871 units in October 2007. The monthly increase resulted from strengthened activity in Ontario and Quebec, which more than offset fewer sales in British Columbia and Alberta. Transactions reached their second highest monthly level ever in Manitoba, Nova Scotia and Newfoundland and Labrador.

Actual (unadjusted) sales activity in October was up eight per cent compared to the same month last year -- the highest level on record for the month of October. Sales have remained above year-ago levels in almost every month this year, putting activity on track for a new annual record in 2007.

Transactions for the year-to-date in October numbered 460,397 units, up 8.4 per cent from the same period last year. Year-to-date activity continues to run ahead of year-ago levels in all provinces except Alberta. Activity in the first ten months of 2007 has already surpassed all previous annual totals in Saskatchewan, New Brunswick and Newfoundland and Labrador.

The national MLS^® residential average price rose 11.1 per cent year-over-year in October to $313,442. Average price reached the highest level for the month of October in every province, and broke all previous monthly records in British Columbia, Saskatchewan, Quebec and Newfoundland and Labrador.

Seasonally adjusted MLS^® residential new listings edged up 0.4 per cent from levels recorded in September to 71,567 units in October -- the second highest level on record. In keeping with the trend for sales activity, the monthly increase in new listings in Quebec and Ontario offset a monthly decline in new listings in British Columbia and Alberta.

Sales activity increased more than new listings in October, which caused the market to tighten slightly compared to September. The MLS^® resale housing market remains tightest in Manitoba, and most balanced in Alberta.

Seasonally adjusted MLS^® residential dollar volume rose 1.5 per cent in October 2007 compared to the previous month to reach $13.2 billion, the sixth highest level on record. MLS^® dollar volume set new records Manitoba and Newfoundland and Labrador, and posted its second highest ever levels in Ontario and Nova Scotia.

"CREA's analysis shows prices setting new records in every province in 2007 and in 2008, but price increases will be smaller in 2008" says CREA President Ann Bosley. " In effect, price increases will become smaller as the resale housing market becomes more balanced."

"Sales activity on October posted a monthly increase in almost every province east of Saskatchewan," said CREA Chief Economist Gregory Klump. "Although down from its peak reached earlier this year in almost every province, activity is still very high. This shows that homebuyer sentiment remains upbeat. The continuation of low interest rates and rising incomes will support activity next year, even as prices continue rising and job growth softens."