A closer look at the Saskatoon real estate statistics for May 2010
The Saskatoon Region Association of Realtors recently reported May 2010 results for the entire residential category of Saskatoon real estate including single-family homes, condominiums, semi-detached properties, duplexes, mobile homes and vacant lots. Unit sales totaled 354 across all of these property types for a decline of roughly four percent compared to the previous May. The average selling price of a residential property in Saskatoon was $294,516 for a gain of just over $15,000 (five percent) when compared to May of 2009. Let’s have a look at how single-family detached homes (houses) and condominiums did in comparison to the entire residential category.
Single-family detached home sales softened through the month of May falling to 232 units, down nineteen from April to fall short of last May’s numbers by fifteen homes. Those that did sell moved far quicker (twenty-eight days) than they did during the same month last year when houses took an average on forty days to sell.
The inventory of active house listings continued to push higher but still fell short of last year’s highs. At the close of the month 822 single-family homes were showing an active status on the Saskatoon multiple listing service. That number represents a gain of one hundred units over the month and a decline of sixty-nine on a year-over-year basis. Still, housing inventory took a big step into more of a “balanced market” territory as the “months of supply” expanded from 2.9 months at the end of April to 3.5 months by the end of May.
Average house prices inched lower to $321,263 dropping by about $8,600 when compared to April. The average selling price of a Saskatoon house was up just under ten thousand dollars when compared with May of 2009. The median slipped lower by three thousand dollars on a month-over-month basis falling to $315,000 and recording a gain of twenty thousand dollars on the year. The three-month average pushed up slightly to $320,946 and also finished up by roughly twenty thousand over the past twelve months. Only eight single-family home sales were recorded above the $500,000 mark in May whereas April produced twenty sales in that range. April’s price numbers were certainly skewed higher by this unusually larger number of sales at the market’s high end.
While house sales began to cool off Saskatoon condominium sales remained strong. 117 units changed hands during the month, up from 104 in the month of April and just slightly higher than the 111 units that sold in May of 2009.
Condominium inventory spiked higher through May reaching 503 by the end of the month to bring us the first year-over-year inventory gain that we’ve seen in nearly twelve months. Total condo inventory moved up from 444 at the close of April to finish May above last year’s number of 480. Still, increased demand kept the “months of inventory” from swelling further. It remained steady at a 4.3-month supply following a big jump in April when it moved to up from just 3.2 months in March.
Saskatoon condo prices surged forward again with the average selling price reaching $242,998, up nearly thirteen thousand dollars from last month. The year-over-year gain was substantial moving more than fifteen percent from $210,544 last May. The median selling price showed similar gains climbing $26,000 over the past year to $235,000. The three-month average moved up less gaining just one thousand dollars from April and seventeen thousand dollars on a year-over-year basis.
A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.
I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.
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Norm Fisher
Royal LePage Saskatoon Real Estate
11 comments so far. We'd love to hear your thoughts.
June 7th, 2010 at 8:11 AM
“Only ten sales were recorded above the $500,000 mark in May”
I came up with a number of about 130 house listings above $500,000 at the moment. Is that correct?
June 7th, 2010 at 8:29 AM
Mike,
Thanks. Your comment woke me up to the fact that I used total sales numbers in that sentence when I was supposed to be talking about houses. There were eight house sales in that range in May compared to twenty in April. I’ve made the appropriate change above.
My search of active listings shows 124 units in the single-family category that are priced at $500K or higher. There are forty condos in that range with two sales in April and two in May. A total of six condo sales year-to-date in this range. If you’re thinking of speculating, I suggest you steer clear of condos priced above $500,000.
June 8th, 2010 at 10:28 AM
High end condo market, yikes. 20 month supply of 500k condos? I welcome any investment in our city whether it be the whitewater park on the river, potatoes on 3rd avenue or River Landing. I just hope that they all understand that fun, food and accomodations need to be affordable for the people. Whitewater and potatoes are no brainers, hopefully RL is one as well.
Reading the Globe and Mail today and the banks are not showing much favoritism towards housing lately. National Bank says that the housing market could have the wind knocked out of its sails. Today TD expects average prices to decline 6 or 7 percent in the next year.
http://www.theglobeandmail.com/report-on-business/house-prices-to-drop-td/article1557540/
http://www.theglobeandmail.com/report-on-business/top-business-stories/housing-market-could-have-wind-knocked-out-of-its-sails/article1595226/
June 9th, 2010 at 12:27 PM
Doug,
Check out the “Related Information” below this Globe article.
June 10th, 2010 at 10:24 AM
Everyone loves economic predictions by banks; here’s RBC’s opinion on economic growth for the next years:
“Canada’s economy is expected to surge in 2010, according to a new report from RBC Economics, which predicts gross domestic product growth of 3.6 per cent as a result of strong demand and increased job creation.
Growth will be strongest this year in Newfoundland and Labrador, the bank says, with growth predicted at 4.1 per cent for the province. That will be followed by Saskatchewan with growth in the 3.8 per cent range.
RBC suggests Saskatchewan will lead the country in 2011 with a growth rate of 4.4 per cent, followed by Alberta at 4.2 per cent.”
http://www.cbc.ca/fp/story/2010/06/10/3135881.html
June 10th, 2010 at 3:19 PM
Norm,
Do you think now is a wise time to buy a home in Saskatoon, or do you see prices dropping within the next 5 years? It seems grossly overpriced for what you get( I’m talking 175-250 range)
June 10th, 2010 at 8:46 PM
Rascal,
I think it would be unwise for me to give this kind of advice to someone whose needs I don’t understand. In other words, buying might be right for some and wrong for others under any market conditions.
June 10th, 2010 at 9:28 PM
Here is an article asking if first time buyers should take the plunge.
http://www.theglobeandmail.com/globe-investor/personal-finance/home-cents/should-first-time-home-buyers-leap-in-or-wait/article1599495/
June 10th, 2010 at 10:13 PM
Thanks Doug,
I completely agree with this story. First timers should either buy, or wait, depending on their own circumstances.
June 11th, 2010 at 12:24 PM
With Saskatchewan being a “have” province, and real estate prices on the rise, where do you think the next drop in real estate will occur?
June 11th, 2010 at 6:01 PM
Hi Sam,
There seems to be fairly broad consensus that some downward pressure is due right across the country. I would think the markets that went crazy like Toronto and Vancouver are likely to see the largest corrections.