The average price of a Canadian home hit almost $420,000 in October, up by more than seven per cent compared to the same month a year ago.

The Canadian Real Estate Association said Monday that the average price of a home sold on the agency's MLS service was $419,699 last month — an increase of 7.1 per cent compared to the same month in 2013.

With the October numbers by CREA, the average Canadian home has never been worth more than it is now

In volume terms, the actual number of homes sold rose by the same amount — seven per cent. "This marks the sixth consecutive month of stronger resale housing activity compared to a quiet start to the year, and the strongest activity for the month of October since 2009," CREA said in a release.

October isn't typically one of the strongest months for home buying, as activity tends to be strongest in the spring and summer.

TD Bank said in a note to clients after the CREA numbers were released that in sales terms, the housing market is hotter than it normally is this time of year.

Where are house prices declining?
City Annual % decline
Sherbrooke, Que. -14
Gatineau, Que. -3.7
St Catharines, Ont. -3.4
Newfoundland & Labrador -2.2
Quebec City -1.9
Ottawa -1.5
Saguenay -1
Winnipeg -0.5
Halifax-Dartmouth -0.3

"While on average sales have remained roughly flat over the last three months, they are running at a level that is 10 per cent above their 10-year average," the bank said.

As has been the case for some time now, the realtor group says hot markets in Toronto and Vancouver are skewing the national average higher. With those two markets stripped out, the average price for the rest of the country is $330,596 and the year-over-year increase shrinks to 5.4 per cent.

9 cities see price declines

But just because the national average is growing steadily, the local picture looks very different.

Nine of 26 largest housing markets in the country posted annual declines, most notably Sherbrooke, Que., where the average house price has declined by 14 per cent in the past year.

With the exception of Sherbrooke, the other eight cities with declining house prices posted rates of between -0.5 and -3.7 per cent.

Indeed, CREA also noted that not all types of housing are increasing at the same rate. 

Two-storey single-family homes continue to post the biggest year-over-year price gains, followed closely by townhouse/row units and then bungalows.

Condos and apartment units increased by the least amount, but are still up 3.5 per cent compared to their average price in October of last year.

"We continue to believe a moderation in housing activity is in the cards for the Canadian economy, but it likely won't happen until interest rates start edging higher at the end of next year," TD Bank said.