Saskatoon home sales remain active in November 2009: SRAR
The Saskatoon Region Association of REALTORS® (SRAR) released the residential real estate statistics for November 2009 today, accompanied by this release.
The residential resale market remained strong during the month of November with 254 properties being sold, 41% from November 2008 when 180 homes sold. Year-to-date, unit sales are at 3611, up 8% from 2008 when 3,359 homes sold by this time.
Year-to-date Saskatoon REALTORS® have sold more than one billion dollars of residential real estate. The $1,003,976,000 number represents a 3% increase over the 2008 year-to-date volume number of $970,223,000.
The average selling price for the month of November was $ 278,885 remaining on par with November 2008. The year-to-date average residential selling price is $278,033 down 4% from 2008. The decrease indicates an increase in the mid price range homes being purchased by more first time and move up home buyers. Homes took 43 days on average to sell in November. The days to sell number has remained level for the past 6 months.
MLS® listing inventory continued to correct in the month of November. Home buyers had 877 residential homes to select from at the end of November. This inventory number includes 288 condominium units. REALTORS® listed 356 properties in November, down 16% from 2008 when 425 units were placed on the market. Reduced inventory is contributing to a more balanced real estate environment.
Sales activity in small town markets surrounding Saskatoon was strong with 75 properties having sold, up 168% from 2008 when 28 properties changed hands. The sales number is on par with 2007. The average selling price in these areas for November was $280,453, up 24% from November 2008, which had an average selling price of $226,546.
The real estate market is progressing as real estate professionals had forecast. Inventory numbers are returning to more normal levels and sales activity remains steady. The average selling price has remained steady throughout 2009 indicating a stable environment. Similar market activity is expected as we move into 2010.
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.
If you live in Saskatoon we’d sure appreciate hearing your comments about your neighbourhood. Please visit our “Saskatoon Neighbourhoods” page and let us know what you love about your community.
Norm Fisher
Royal LePage Saskatoon Real Estate
6 comments so far. We'd love to hear your thoughts.
December 1st, 2009 at 2:56 PM
The last paragraph seems to be an “I told you so.”
Unit sales are up forty percent from last year, however, it’s important to remember that October 2008 was pretty bleak. The November five-year average for unit sales is 229 units, so placed in the proper perspective, sales are very good but more like ten percent better than average.
December 1st, 2009 at 4:47 PM
From my technical perspective I will have to remain in my cave. The highs and lows of price have converged downward from Jun08. From Apr09 until now, price has kinda remained flat. Trend for price still remains in a downtrend, the upward trend in sales ended at beginning of November and is trending downward.
Technicals of price convergence say there is going to be a big movement in price happening. With SK government continuously talking of a provincial deficit, and with economist sounding off about a bubble, I say the coming significant price movement is going to be down.
Do not think I am just a pessimist. It is possible for price to have a significant move up with convergence too, but what is the good news to propel it? Even our weather is not good news, the lack of snow is going to be harmful to agriculture. Farmer’s Almanac is forecasting “cool and dry” for summer 2010. I’m no farmer, but that don’t seem like ideal growing conditions, and without the right conditions I don’t see farmers buying any potash. Of course, that is not good for potash since sales have declined internationally and are now somewhat a little more dependant on domestic demand.
Keep the euphoria going SK, soon you find a “13th” in the economy! Just like the game, I think SK is a little bit over-confident with winning.
December 2nd, 2009 at 8:37 AM
Impressive statistical summary Norm — about the only thing missing is a chart on historic inventory levels. The main questions this leaves in my head is what is going to happen with future listings and housing supply? We are above 2004-07 levels but the trend has been on an big downward trend that didn’t exist in those years.
We also know that there wasn’t sufficient listings during those early years, espeically in 2007 in a time when demand was putting pressure on inventory levels and pushing up prices. I’d say we need to maintain 20% higher listings than we did in the 2004-07 years to maintain balance in this market — especially if demand remains as strong as it is.
To me, that’s the million-dollar question… will listings level off at say 20% above the 2004-07 years or will it continue to fall? Of course its also interesting to note how strong demand is and wonder whether this will continue as well.
December 2nd, 2009 at 10:19 AM
Hi Doug,
Nice to hear from you, as always.
Please note that the final chart in this post has a six-year graphing of historic inventory levels.
You raise some excellent questions, and yes, it makes sense to me that higher than historic inventory levels are likely required to maintain balance especially if our population continues to grow, even marginally.
TD’s recent Housing Outlook makes some strong arguments for diminishing demand and some upward pressure on inventory beyond Q2/2010. Pent up demand that came as a result of the late 2007 downturn will be spent by the end of this year. Higher prices will further affect affordability and draw more sellers to the market. Higher housing starts will produce more inventory. That said, TD is predicting that housing will get further out of whack with the underlying fundamentals before that starts to correct again.
December 3rd, 2009 at 10:45 AM
Hi Norm.
I appreciate the summary and trend information you place on your website. That takes a lot of work. I especially like the historical month-by-month average residential sale price graph. Can you tell me if free historical information like that is available somewhere on the web that could give me more detailed info on changes in prices for specific Saskatoon neighbourhoods and house types (eg. Silverwood Heights bungalow) over a span of 5 to 10 years?
Thanks
L.D.
December 3rd, 2009 at 12:33 PM
Hi Les,
Thanks for the kind feedback. I’m glad you find the site useful. I don’t have anything to offer that’s quite as extensive at the neighbourhood level but our area profiles aren’t bad for keeping up with what’s happening in your area.
Each of them have the following:
Average residential sale price for previous year.
Median sale price for previous year.
Broken down by houses and condos
Number of units sold for previous year.
High sale price for previous year.
Average price for previous year.
Low sale price for last year.
Average sale price for the past six months.
Houses only
Ten-year price trend including a graph.
I’m certainly open to further suggestions but a monthly graphing would be somewhat challenging, both in terms of time required and limited data samples. Consider that we have 250-500 sales per month in more than 50 neighbourhoods. Monthly averages would be weak for reliability with so few units.
Our Neighbourhood Profiles are behind the Saskatoon button on the navigation bar or http://www.teamfisher.com/saskatoon-neighbourhoods/
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