According to numbers released Friday by the Saskatoon Region Association of Realtors, the average selling price of a Saskatoon home dropped in July, falling below the $300,000 mark for the first time since March 2008. Average prices through the month came in at $292,428 for all units sold in the residential category, down from its peak of $310,386 reached in June 2008 and just above the six month rolling average of $289,902.Year-over-year gains fell to 20% compared to July 2007 when the average selling price was recorded at $244,327.
The decline in prices can almost certainly be credited to increased competition amongst sellers. The average asking price of properties that sold in July was just $300,608 compared to $317,735 in June. Total active residential listings hovered between 1,400 and 1,500 units through most of the month, settling at 1,497 by month end. These are numbers that are near double the record highs that I’ve experienced over a near 15-year real estate career in Saskatoon.
The active listing inventory did show some signs of stabilizing increasing just 57 units through the month of July following sharp increases for three consecutive months. Inventory grew from just 470 units at the end of April to 1,440 units by the close of June, an average of 323 units per month.
Total unit sales finished the month at 348, down 18% from July of last year when 422 units traded hands, but up from the previous year when 337 units were marked sold. Buyer interest seems to remain strong if we can get by comparing overall performance to 2007, which produced unit sales well in excess of the norm. To me, strong levels of demand provide some evidence that the Saskatoon real estate market is experiencing a correction, as opposed to a crash.
Sellers can expect competition to remain strong in the coming months. They can take some comfort in knowing that demand remains strong but they must be aware that everything matters when buyers have an abundance of options. Take the time to prepare your home for sale by addressing potential negatives with respect to property condition and pricing errors.
By the middle of next week, I will follow up with our “Closer Look” which will provide an overview of activity and prices for single-family homes and condominiums in each of the five major real estate areas of Saskatoon.
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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Royal LePage Vidorra