Home sales in Waterloo Region were up almost eight per cent last month.
That compares to numbers from October 2017.
But on a year-to-date basis, sales have decreased by close to 13 per cent according to the Kitchener-Waterloo Association of Realtors.
Just over 5,000 residential units have been sold compared to over 5,800 during the same period in 2017.
"Gradually increasing interest rates could be nudging both buyers and sellers from the sidelines of the housing market." KWAR President, Tony Schmidt, said in a release.
The average sale price of all residential properties sold in the month increased 7.7 per cent to over $489,000.
"Not surprisingly we're seeing the biggest surges in average price happening in the denser forms of housing such as condos," added Schmidt.
"This is partly a reflection of demand being strongest in the entry-level price ranges as well as there being more newly constructed units in the mix."