2012 begins as a seller’s market for Saskatoon homes: SRAR

The Saskatoon Region Association of Realtors® (SRAR) released the MLS® residential real estate statistics for January of 2012 today, accompanied by the following release.

In 2012 we are starting out with a market that favors sellers. The number of residential properties listed in Saskatoon was 528 units, down only 1% from last January while the MLS® sales were up 20% to 310 units (247 units within the city limits, an increase of 27% compared to January 2010). This resulted in an increase in the average selling price of 6% to $318,163. There were a total of 951 active listings for January 2012, which was also down 1% from last January.

The $300,000 to $349,999 price range recorded the most sales at 68 units, an increase of 51% from 45 units in January 2011. The highest average sale price of $377,757 remains in the neighborhoods on the far East side of Saskatoon, which also has the most active listings and units sold.

Activity was slower in the areas surrounding Saskatoon. There were only 185 residential properties listed compared to 213 properties in January 2011 for a decrease of 13%. The number of sales was down 26% from 57 to 42 units year over year. In spite of this quieter activity the average residential sales price in the areas surrounding Saskatoon was up 3% from last January to $279,171.

The number of days to sell remained almost unchanged at 46 within Saskatoon while listings in the area surrounding Saskatoon took 75 days on average to sell which is an increase of 25%. The area with the shortest time to sell continues to be the North end, West of the river, at 33 days on average.

If the supply of product continues to remain consistent with last year and if the anticipated increase in demand occurs, our city will remain in a seller’s market with buyers competing for their purchases. It is expected that Saskatoon will continue to buck the softening price and activity trend taking place across Canada.

Jason Yochim
Executive Officer
Saskatoon Region Association of REALTORS®

I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call of email me.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here, now.

Norm Fisher
Royal LePage Saskatoon Real Estate

Comments

  1. Hi Norm,

    I commend you for recommending the software be updated and for all your hard work on this site!

  2. Webcanto, I have been watching the mls for over a year and I’m suprised at the number of places that keep getting recycled over and over again.

    Norm, how do you feel things are going to play out on the market with the incentives new home builders are putting out ? Currently some are offering a downpayment plus 48k paid out over a 8 year period of time. Are there some pitfalls to watch out for with this type of deal/home they are providing. ?

    Thank you.

  3. I was wondering when SRAR calculate the average days on the market, do they add the days for properties that have been listed before? When you buy a property, you should ask for a listing history back to the original sale or initial listing because that property may actually have been on the market for a year or more.

    • Webcanto,

      Great question. SRAR only counts days on the market from the current MLS listing when a property sells. I’ve been complaining about it for years as I feel that the current system is potentially misleading. It irks me that listings that have been around forever can suddenly be waving a “new listing” banner. In fairness to SRAR, there are some weaknesses in the software, or the database they’re using that makes it impossible to combine days from two or more listings. Personally, I’d support an investment that would provide the functionality. I brought it up at a broker’s meeting once and got shot down by most of the people in the room so I’m afraid there’s no appetite for it. At the current time, we really have no good idea how long it takes to sell a house in Saskatoon. Any good buyer’s agent will bring this information to the table for their buyer prior to writing an offer. If the information isn’t offered, buyers should definitely do as you’ve suggested and request an MLS history report on the property they’re considering.

      Hi Misque,

      These types of incentives concern me, especially given the loftiness of property valuations and current consumer debt levels. If a builder can afford to pay a $15K downpayment and a $48K rebate, one has to know that the price of the home they’re purchasing is grossed up by a 15-20% premium. It might be 5-7 years before they have any chance of selling at a price that would settle the mortgage. Sounds like a goofy way to buy a house to me. If this was going on in the U.S. we’d be calling it “subprime.” CMHC has stated that they’re going to be cutting back on the number of loans they insure. This kind of stuff might be first on the chopping block.

  4. Sask_A_Bust says:
    • Sask_A_Bust,

      If the past decade has proven anything, it’s that things aren’t as simple, or even as logical as they may seem. However, along the same lines as the story you’ve linked, this one about “CMHC backing fewer loans” is interesting to say the least. I’m curious to see how this unfolds.

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