In a development which led the Canadian Real Estate Association to nudge its complete year sales forecast higher, sale of pre-owned homes across Canada recorded a 45% increase in October compared to the same month last year.

On the back of low interest rates and improved consumer confidence, as many as 45,818 homes were sold by owners.

The new recorded figure for October is 2% more than the previous home re-sale record set in May 2007 and a whopping 74% more than January, when activity recorded the lowest level in over 10 years. Also recorded was a 20% rise in the average national prices of properties as compared to last year, to C$341,079.

"The results are a bright spot in the Canadian economy", Scotia Capital analysts Derek Holt and Karen Cordes wrote in a note. "But with prices up 20 percent over year ago levels and at all-time highs by virtually any measure, this is becoming an over-valued asset class in our opinion".

Although the news has managed to raise spirits, experts have been quick to warn that if the resale market keeps going strong, there is a good chance that the Bank of Canada might re-look its stance to not change interest rates, which currently stand at 0.25%, till mid-2010 to help revive the economy.