The recently released figures by Statistics Canada claimed rise in prices of houses located in the Toronto area in October as compared to previous month. Overall home sales in the region rose significantly in October, reporting a two year high level.

Home prices rose 0.3 per cent, apparently, under soft interest rate regime. However, new homes rates are still 0.1 per cent below the level in October last year, the federal agency claimed in its latest figures.

Home prices in all leading cities of the nation reported a rising trend with Quebec and Vancouver reporting 1.1 per cent and 0.7 per cent price rise. Prices also rose 0.5 per cent in Hamilton, Sudbury and Thunder Bay during the period in accordance with overall heating up of Canada's housing market.

Meanwhile, the central bank warned people against taking more loans adding that soft interest rate regime would not remain for a long time. The bank has promised to keep its benchmark interest rate at a historic low of 0.25 percent by June 2010 if the inflation rate remains under control.