The Canadian housing market entered a winter hibernation earlier this year, according to a group representing property owners on Wednesday, as new data for October showed lower sales, fewer new listings, and mostly stable selling prices.

On Wednesday, the Canadian Real Estate Association (CREA) said the number of homes sold on the group's Multiple Listing Service fell by 5.6 percent in October from the previous month's level.

Fewer homes were sold and fewer new home listings were offered for sale. New listings also fell by 2.3 percent in that month. This is the first decline since March.

October is usually a strong month for the housing market, as under normal circumstances, activity slows down in the cold months until the beginning of the year, increases in spring and summer, and declines again in fall to winter.

But even taking this seasonal trend into account, October was still a colder-than-usual month for the housing market.

The Canadian Real Estate Association said the sales slowdown was driven by activity in the largest Canadian cities, where activity fell by 10 percent in Vancouver, 13 percent in Victoria, 9 percent in Calgary, 11 percent in Ottawa, 5 percent in Toronto, and 10 percent in Montreal.

Activity also declined almost everywhere, but regarding prices, the numbers are mostly stable, depending on the comparison.

The average selling price of a home sold in October reached $656,625, slightly higher than September's level and 1.8 percent higher than last year.

Canadian home sales fell again in September

But the Canadian Real Estate Association (CREA) said the average figure can be misleading because it can be easily skewed by large markets like Toronto and Vancouver. It prefers another measure, such as the House Price Index (HPI), as a better gauge because it adjusts based on the type and number of homes offered for sale.

The House Price Index (HPI) fell 0.8 percent in October but was 1.1 percent higher than it was a year ago.