A media release from The Saskatoon Region Association of REALTORS® (SRAR) follows regarding October, 2015 residential real estate sales in Saskatoon and area.
Please note that the association’s comments often touch on “year-to-date” numbers, and some of their comments may address sales within the association’s full trading area. The charts that you see on these posts , as always, reflect data for activity within the city if Saskatoon on a month-to-month basis over the past five years.
October saw a 25 percent decrease in home sales month-over-month in the Saskatoon real estate market. This reduced activity sustained inventory levels of available property in Saskatoon to just below 2,000 units. "Based on the rate of home sales in October it would take nearly seven months to absorb the current available inventory," according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®.
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In spite of the decrease in sales activity and higher inventory levels, the average price in Saskatoon has only decreased by one percent year-to-date. "Although averages give some sense of where the market is at they can be misleading. An increase in sales in one price range can skew the results," adds Yochim. “A better indicator of where the market is trending is the Home Price Index (HPI)." The MLS® Home Price Index is the most accurate indicator of market trends. It measures change in market value in a similar way as the Consumer Price Index. The composite benchmark value for the Saskatoon market in October was $310,200, virtually unchanged from the previous month. The composite index has been trending downward since July this year reversing a gradual upward trend which began in January. This index is at its lowest level in two years and looks to continue its downward direction.
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Although there has been a decrease in home sales in most price ranges, there was a notable decline in the sale of homes above $700,000 month-over-month. In October of 2014, a total of 11 homes in excess of $750,000 sold eclipsing the three that sold this past month. Year-to-date, home sales in Saskatoon have declined by 14 percent from 4,002 units to 3,459. Comparatively, the number of homes listed for sale was up eight percent by the end of October. This has resulted in sustained inventory levels of 1,955 units, a 26 percent increase over last year. Total dollar volume for the Saskatoon market at the end of last month was $1.6 Billion. That is down 15 percent from last year and by year end will likely equal the volume of 2013.
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"The current buyer's market is likely to remain for the foreseeable future until existing inventory is absorbed," says Yochim. "If priced to market, homes will sell within the average of a month and a half." New home construction has slowed, especially in the multi-family market. With higher inventory levels, buyers have more to choose from in the market. The tendency for buyers is to wait on a purchase hoping prices drop significantly. "Although there will be a downward adjustment in pricing, I don't anticipate a significant change as some have predicted," comments Yochim.
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