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October one of just two months in 2016 to show annual growth in unit sales: SRAR

The following is a media release issued by the Saskatoon Region Association of REALTORS® regarding residential sales and listing statistics for the month of October 2016. The charts are brought to you by TeamFisher of Royal LePage Vidorra.


Home sales in the Saskatoon market last month were up eight percent over October of 2015. "This is a very positive change and speaks to consumer confidence in our market," states Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®.


Recent changes to lending rules by the federal finance minister were also a contributing factor in activity as buyers scrambled to beat the October 17th deadline when these changes came into effect. "Regardless of the factors leading to a sale, it is always good to see stronger sales activity," he adds. “Every home sale contributes almost $50,000 of additional economic activity in the local economy." ?


Strong sales in August and October of this year coupled with an overall decline in new listings has resulted in an 11 percent reduction in the inventory of active listings in Saskatoon. Active listings peaked at 2,047 units in June of this year and have declined steadily to 1,745 at the end of last month. This will have a positive impact in several areas. It will help maintain the average price as well as start to move the market in the direction of a seller's market, although we're not there yet. The total number of sales for Saskatoon year-to-date were 3,249 compared with 3,457 for the same period last year. The sales-to-listing ratio indicates whether we are in a buyer's or seller's market. It is determined by dividing the number of sales by the number of new listings for a period of time. A 50 percent ratio is considered balanced. Currently, the market is at 42 percent, which is a buyer's market.


Another positive sign is the "days of inventory" which determines how long it would take to liquidate the current active listings at the current level of sales. Based on October's numbers there is just over 5.5 months of inventory. This is just slightly above the five-year average of five months. The overall dollar volume for the Saskatoon and surrounding market is only down three percent from last year and currently sits at just over $1.5 billion dollars. Overall dollar volume has remained strong in spite of a six percent year-to-date reduction in sales. This is largely due to an increase in sales of homes priced over $750,000. Year-to-date there were 51 units sold between $750,000 and 800,000 compared to 40 last year. Comparatively, sales were down ten percent year-to-date for homes priced between $250,000 and 450,000.


“In a market with an average selling price approaching $350,000 there is no doubt that the recent federal change for home buyers qualifying for a mortgage will further impact the market for homes," comments Yochim. "It remains to be seen how much the impact will be."


The good news for those selling is that homes are selling for 97 percent of their asking price. Sellers who choose to list too high over the market are finding it difficult to obtain that sale. The closer the asking price is to market value the tighter the offer will be to the list price.


Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.


Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®

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Dollar volume and unit sales for the Saskatoon real estate market saw a 13 percent year-over-year increase in August. At the end of July, the year-to-date dollar volume was 10 percent lower than it was in 2015. The recent activity in August has helped to improve that to only a four percent decrease.


Dollar volume for Saskatoon and surrounding area trades was up significantly month-over-month in August with a 38 percent increase, a record for August. The total dollar volume was just over $210M this past month eclipsing the next best August performance which was in 2013 at $180M.


Unit sales year-to-date in Saskatoon are at 2,614, a seven percent reduction from 2,811 units that had sold by the end of August, 2015. Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® is encouraged by this recent improvement in activity.


"To put it in perspective, this is a difference of less than 200 units for the year or 24 home sales a month." The 373 sales in August is slightly higher than the five-year average and is comparable to activity recorded in 2012 and 2013. "A levelling of new listings introduced to the market, combined with an increase in sales is slowly helping to reduce historically high inventory levels," he adds.


Currently, there are 1,956 active listings in Saskatoon The five-year average is 1,634 units.


The total number of units listed for sale in Saskatoon year-to-date was 6,694, a four percent reduction, or 291 fewer units for the first eight months of the year. New construction has also seen a decline in housing starts, especially in the multi-family market. This will also help to reduce inventory levels as many of these new homes are listed with a professional REALTOR® prior to or on completion.


The average number of days to sell a home in Saskatoon is currently 47 with a sale price of 97.2 percent of the list price.


"I think sellers are beginning to recognize that pricing to the market will sell their home in a reasonable time and for close to their asking price," comments Yochim. "I think that is playing a role in more units selling in August."


The average sale price is continuing to hold fairly steady at $352,000 while the median price is currently $335,000. The Composite Home Price Index (HPI) published by the Canadian Real Estate Association, measures the rate of change in home values for a period of time. It is considered to be the most accurate barometer of market conditions. The HPI works similar to the Consumer Price Index in that it starts with a typical home value and a base year and measures changes in the value over time. For August, the index was at 231.9 down slightly from a year earlier. This indicates that pricing is remaining stable for the most part.


Jason Yochim CAE, CRAE
Chief Executive Officer - Saskatoon Region Association of REALTORS®

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The following is a media release issued by the Saskatoon Region Association of REALTORS® regarding residential sales and listing statistics for the month of July, 2016. The charts are brought to you by TeamFisher of Royal LePage Vidorra.


The number of properties introduced to the Saskatoon real estate market continued to decline in July. Although new listing numbers have been down every month since February, July's decline of 14 percent year-over-year was the most significant decrease this year. Overall, the number of new listings for 2016 has totaled 5,683 units compared to 6,142 for the same period last year, a decrease of five percent.


"This is a positive sign for the market and has an impact in two significant areas," comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “ First, it helps to reduce elevated inventory levels and secondly it helps to move the market closer to a balance."


Currently, there are 1,986 active listings in Saskatoon, still considerably higher than the five-year average of 1,641 units. The high-water-mark for active listings occurred in June of 2015 with nearly 2,100 active listings for sale in the Saskatoon market. The sales-to-listing ratio is determined by dividing the number of sales for the month by the number of new listings. It is said to be a balanced market when this ratio is 50 percent. Anything less than that is considered a buyer's market, while a ratio in excess of 50 percent is considered to be a seller's market. The sales to listing ratio was 47 percent at the end of July, its highest point since December of 2015.


Sales volume for July of this year was 16 percent lower than it was for the same month in 2015 with 370 home sales compared to 442 last July. A reduction in sales volume year-over-year has been the trend since January of 2015. June and July of this year showed the most significant decline in sales volume so far in 2016.


In spite of a reduction in sales and dollar volume, the average and median selling prices continued to remain largely unaffected with a one percent decline over the previous year. (Norm’s note: The “average sale price” actually increased 2.8 percent to $367,359 in July, compared to July of 2015 when it was $357,459. Remarkably, it's at its highest point ever on the chart directly below. One should not conclude that prices are higher than they were a year ago. They are almost ceratinly not. While, single-family homes have taken some increases over the spring and early summer, the mix of sales which includes far fewer low-priced condos is skewing the average price higher. Further, there were four sales that exceeded one million dollars in July, also a contributing factor to an inflated average. The Home Price Index numbers strike me as more accurately reflecting market price changes.)


"All in all, the reduction in inventory is a move in the right direction," adds Yochim. "It is still a great time for buyers to be in the market with a decent selection, stable pricing, and low-interest rates. However, as inventory levels continue to decline so will selection for buyers."


Homes are selling for 97 percent of their asking price. Sellers that need to sell must consider the market and price their homes strategically. Buyers are also more educated today than at any other time with access to information on sales and the expert advice of a REALTOR®.


The average days on market for a home in Saskatoon is 52 compared to 50 last July. The five-year average for days on market is 41. If inventory levels continue to decline so should the number of days needed to sell. At the current level of sales activity, it would take just over five months to liquidate the current number of active listings. The five-year average is just over four months.


Jason Yochim
CEO, Saskatoon Region Association of REALTORS®

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Saskatoon Home Sales Down in June of 2016 From a Year Ago: SRAR

The following is a media release issued by the Saskatoon Region Association of REALTORS® regarding residential sales and listing statistics for the month of June 2016.


Inventory levels remain elevated at just over 2,000 units largely due to a decline in the level of home sales year-to-date (Norm’s note: Of interest to me is that residential inventory actually fell when compared to June of 2015. This is the first time in more than three years that inventory levels are down from the previous year at month-end).


In the first half of 2016, the number of homes that have sold in Saskatoon totaled 1,873 units representing an 8.2 percent decline from the same period last year. At the current rate of sales, it would take just over five months to liquidate the current active listings. The five-year average is 3.76 months (Norm’s note: June posted it’s largest annual decline for the 2016 calendar year as sales tumbled to 390, down from 462 in June of last year, for the weakest June in six years).


(Norm’s note: while sales weakness in the condo category has been apparent through 2016, single-family homes reported their first significant down month following some modest softening in May, before which time, this category was holding its own on an annual basis)


It also appears that a few sellers are willing to wait until supply drops before placing their property on the market as the number of new listings year to date is down 3 percent compared to 2015 with a total of 5,074 properties listed to the end of June. The average number of days for a home to sell is up slightly from 42 to 46 days.


The current sales to listing ratio of 42 percent is down slightly reflecting a firm buyer’s market. Pricing seems to be only slightly affected in a negative way with the average price of $354,000 down by 1.7 percent from a year ago. The median price is also down from $350,000 to $335,500.


(Norm’s note: a closer look at prices by category show single-family home prices trending upwards for the fourth consecutive month to the point where they are almost even with last year. Townhouses break away and post some annual gains while apartment prices tank).


"It is actually an ideal time for anyone considering a purchase" according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. "In addition to having a broad selection in most price ranges, interest rates remain low and prices are stable," he adds.


So far in 2016, the homes that have sold have sold for 97.3 percent of the asking price. This underscores the importance of proper pricing for a home to sell in a reasonable time and close to asking. With few exceptions, this market is not conducive to speculative selling.


"If a seller is serious about selling it is important to get sound advice on the current market conditions for the area, the competition and how that impacts the pricing of their property," cautions Yochim. "Buyers have access to market information, are well informed and in most cases have the assistance of a professional REALTOR®."


For market activity in rural residential areas and communities surrounding Saskatoon, the total number of sales year-to-date was 514 for the first half of 2016 which is a decrease of 14.8 percent from the same period last year. The average selling price for 2016 is $304,334 down 2.9 percent from last year. The number of active listings is down 3.2 percent from last year with 1,161 properties available at the end of June.


For the major cities of Martensville and Warman, the combined total of active listings at the end of June was 343, down from 379 in June of 2015. Meanwhile, the number of sales in June was 55, a 10 percent increase from June of 2015.


Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®

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Saskatoon home prices post another year-over-year decline in May 2016: SRAR

The following is a media release issued by the Saskatoon Region Association of REALTORS® regarding residential sales and listing statistics for the month of May 2016. 


As was expected with high inventory levels and a six percent year-to-date decrease in home sales, the average and median price are seeing a slight decline. Year-to-date, the average residential selling price in the city of Saskatoon is down two percent to $346,371. The median price indicates a slightly greater reduction of 5.7 percent to $335,000.  "A slight decline in pricing was anticipated with just over 2,000 residential units for sale in Saskatoon,” comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. "The decrease in home sales is also a factor and could be caused by lower demand or asking prices that do not reflect the market, turning away potential buyers”, he adds. 


The five-year average for active listings at this time of year is 1,633 units. Based on the sales activity in May, it would take just over 5 months to liquidate the current inventory. Properties that have been selling are selling within 97.2 percent of their asking price and in an average time of 45 days. The five-year average for the number of days to sell is 37. The sales-to-listing ratio is determined by dividing the number of sales for the month by the number of new listings. At the end of May, the sales-to-listing ratio was 41% which is considered to be a buyer’s market. The five-year average for the sales-to-listing ratio is 48%, which represents a market that would be considered "balanced".


Market activity in the area and communities surrounding Saskatoon appears to be slightly more challenged. The total number of sales year-to-date was 388 at the end of May, a decrease of twenty percent compared to the same period last year. The average selling price of $309,099 is down three percent from 2015, comparable to that of Saskatoon. 


Year-to-date, Martensville saw a total number of sales at 67 representing a seven percent decrease from the same time last year. Warman, on the other hand, experienced a 52 percent decrease in sales for the first five months of 2016 when compared to the 169 sales last year. 


The total number of properties available for sale in Warman at the end of May was 209 which would take a year to liquidate at the current rate of sales. Comparatively, Martensville had 159 listings available representing just over seven months of inventory. The average time required to sell a home for these two cities is 45 days.


"It is important to keep in mind that houses are selling in all price ranges, the key to realizing a sale in a short period of time at 97 percent of asking price is to get sound advice on where a particular home fits in the market based on its condition and location compared to its competition,” advises Yochim.


Jason Yochim CAE, CRAE Chief Executive Officer – Saskatoon Region Association of REALTORS®

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The Saskatoon Region Association of REALTORS® released MLS® statistics for the month of March 2016 this week. This italic text is from the media release that accompanied the stats sheet. The charts our supplements provided by TeamFisher.


Saskatoon continues to hold its own in the face of challenging economic times. Year-to-date, the number of homes that have sold for more than $700,000 has increased by 18 percent for a total of 26 units. This has helped to keep the average sale price for Saskatoon at $344,000 which is only two percent below the average a year ago. By comparison, the median price for a home in Saskatoon was up 1.2 percent.


Overall, unit sales are down six percent year-over-year from 764 units to 715. March saw a slowing in the pace of the number of homes listed for sale helping to slow the growth of the inventory.


At the end of March there were 1,857 properties available for sale in the city of Saskatoon, an increase of six percent over 2015. 


The CREA Composite Home Price Index was down 2.7 percent from last March indicating that there continues to be a very slight decline in housing prices overall.


Homes that are sold by Saskatoon REALTORS® are realizing just over 97 percent of their asking price and are selling in 46 days on average. "Economics tells us that an increase in supply levels will have levelling or declining effect on prices," comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. "Having said that, there are segments of the market that are performing well provided homes are priced properly," he adds. “This will generate the interest needed to obtain a strong sale price. A REALTOR® not only has the market expertise but is objective and emotionally detached from the transaction."


The sales to listing ratio is determined by dividing the number of sales for the month by the number of newly listed homes. This ratio for March was 38 percent, which is consistent with last year. A ratio lower than 40 percent is considered a buyer’s market.


By comparison, the market surrounding Saskatoon, which includes rural residential property, the cities of Warman and Martensville and other smaller bedroom communities, has experienced a 12 percent decrease in unit sales year-to-date. The number of combined first quarter sales in the cities of Martensville and Warman has been declining steadily over the past three years. In 2014 year-to-date sales were 134 units, 107 units had been sold by this time in 2015, and in 2016 the total number of unit sales by the end of March was 82. The average price for a home in Warman this year is $373,000 compared to $327,000 in Martensville while the median price is $359,450 and $318,759 respectively. In Warman and Martensville the average days to sell was 55 and 59 respectively.


Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®


End of release.

Changes to the MLS® Home Price Index in Saskatoon over time


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.


Norm Fisher

Royal LePage Vidorra

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The Saskatoon Region Association of REALTORS® released MLS® statistics for the month of February 2016 this week. This is the media release that accompanied the stats sheet.


The Saskatoon region saw a decrease in sales of one percent in February 2016 compared to February of 2015. This represents a drop of only two units from the 306 sales in February of last year. Year-to-date the total number of unit sales was down 4.3 percent from 560 units in 2015 to 536 units in 2016.


The average sale price of $341,459 was down six percent when compared to the same period last year. This was anticipated based on the CREA Home Price Index where the composite value has steadily trended downward from $313,000 last July to $301,600. This represents a 3.8 percent decline in the index since July and a 2.96 percent decline over the past twelve months. A significant factor in the average price declining, was a decrease in the number homes selling over $500,000. In 2015, 65 units had sold in this range by the end of February compared to 49 units for the same two month period in 2016.


The housing market in Saskatoon is ideal for those wishing to buy for several reasons. Healthy inventory levels which are up 13 percent over 2015, provide more choices, especially in the new home market.


Interest rates are also low and likely to remain that way for the foreseeable future. Saskatoon has weathered the economic slowdown well with a projected GDP in 2016 of 2.2 percent which is the envy of many cities in Canada.


Lastly, in spite of an average sale price of just over $340,000, Saskatoon is still considered to be one of the most affordable places to buy a home in Canada. "It is really a perfect time for those who are in the market to purchase a home,” comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. The primary reason for purchasing a principle residence should be that it meets the needs of the buyer. The thought of making a tax free profit, although important, should be secondary. "Waiting to buy at the bottom of the market can be a risky strategy,” he cautions. "Buy the home because it is what you want, where you want it and it fits your budget. When the time comes to sell it may have fluctuated in value several times on paper."


The homes that are moving are selling for 97 percent of the asking price and average time to sell of 53 days. This is a typical exposure period for this time of year. "Sellers that are realistic about the current market and who price their home accordingly will see similar results,” adds Yochim. "Let's face it, we all would like to make a handsome tax free gain on the sale of our home but depending on when one purchased the home, what improvements have or have not been made and where the home is located will have a direct impact on profitability at the time of sale."


Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.


Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®


End of release.

Changes to the MLS® Home Price Index in Saskatoon over time

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.


Norm Fisher
Royal LePage Vidorra

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February 2, 2016: Media release of the Saskatoon Region Association of REALTORS® regarding activity on the multiple listing service® for the previous month.


January home sales held steady in the face of some recent gloomy economic reports with 174 properties changing hands in Saskatoon. This is comparable to results a year ago and only 17 percent below the five-year average for January. The market experienced a decline in the number of homes added to the MLS® in January with a 5.5 percent decrease, for a total 683 new listings. A decline in new building permits coupled with home sellers deciding to wait until spring to go to market, has helped to relax inventory levels.


The average selling price of a Saskatoon home was virtually unchanged year-over-year at $354,000, down 1.2 percent. "Focusing on the average price can be very misleading," according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. "An average is just that, it can be skewed based on a change in the number of homes selling in a particular price range." A more accurate barometer of pricing than the average is the composite Home Price Index, (HPI) which was $305,400 at month end, a 1.4 percent decrease over the same time last year. This is the first levelling of the HPI since a steady decline started in September. This is a positive sign when it comes to the trend in home prices. According to a recent survey by Praxis Analytics, Saskatchewan residents remain optimistic about the economy in spite of economic challenges.


Although there are currently 1,612 active listings, the decline in new listings so far this year coupled with steady demand will help ensure that inventory levels remain below the overall 2015 average of 1,856 active listings. Condominiums in Saskatoon accounted for roughly 40 percent of the active properties with 634 units currently on the market. Of these active condos, it is estimated that about 20 percent are new units. By comparison, less than a third of the single-family homes available on the market are new construction.


On average it takes 50 days to sell a home in Saskatoon at approximately 97 percent of the asking price. This is a typical exposure period for this time of year. "The seller is really the deciding factor in determining how long a home will sit on the market. The higher they choose to price above market the longer the home will sit," he cautions. "It is important to keep in mind that every property is unique, every situation is unique and every micro market is unique. It only makes sense to have a professional REALTOR® provide sound advice when it comes to pricing competitively in this market."


Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.


For further information, please contact:


Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®


End of release.

 

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.


Norm Fisher
Royal LePage Vidorra

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A media release from The Saskatoon Region Association of REALTORS® (SRAR) follows regarding November, 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.


Over the past month the inventory of homes for sale decreased by 6.5 percent largely due to a slowing of the pace of properties being added to the market. November saw a slight decrease in the months of inventory from 6.8 months to 6.5. This represents how long it would take to absorb the current inventory level based on the current volume of sales.


Click the images for a larger view.



There was a total of 280 sales in Saskatoon in November which is consistent with the five-year average. Sales activity in Saskatoon was down 13 percent year-over-year. A total of 3,737 Saskatoon homes had traded hands by the end of November. This volume of sales is comparable to 2012 which saw 3,772 sales by the end of November (Norm’s note: but down from last year, Saskatoon’s strongest sales year on record, when 4,294 homes had sold by this time). The current dollar volume of $1.7 billion is similar to 2012 as well. This represents a 14 percent decrease from last year.


Click image for a larger view.



Although sales have slowed in 2015, the average price of $354,000 only represents a one percent reduction from January 2015. The average price can be misleading however and should not be applied across the market. True market value will depend on the type of home, age, condition, location and what is competing on the market at the time. Some markets are in a much higher over supply while others have a shortage of available property. The median sale price for a home in Saskatoon of $350,000 is almost identical to the year previous. 


Click the images for a larger view.



Overall the CREA Home Price Index (HPI ) composite benchmark price for the Saskatoon market has been in a steady decline since September which was the high water mark at $317,000. The current benchmark value of $308,000 is the lowest point since May of 2013. "This would indicate that overall prices are cooling and will likely continue to do so for the foreseeable future," comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®.  "I don't expect to see a change in this trend until second quarter of 2016 at the earliest." In January of 2002, when the benchmark value was established, it was set at $114,000. The greatest increase in the benchmark price was when it climbed from $139,000 in January of 2006 to $303,000 by June of 2008. "It's strictly supply and demand, as inventory is absorbed, prices will begin to stabilize," he adds. 

Around 500 properties or approximately 27 percent of the inventory in Saskatoon is made up of newer homes built in the past two years. This has resulted in a drastic decrease in permits for new single-family homes, which are down 39 percent in 2015. Multi-family permits on the other hand are only down 15 percent over the same period last year.  

Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession. 


Jason Yochim

CEO, Saskatoon Region Association of REALTORS®


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


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.


Norm Fisher

Royal LePage Vidorra

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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®.


Click the images for a larger view.


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.  


Click image for a larger view.


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.


Click the images for a larger view.


"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.    

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


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.


Norm Fisher

Royal LePage Vidorra

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Saskatoon “home sales sluggish” in September, 2015: SRAR

A media release from The Saskatoon Region Association of REALTORS® (SRAR) follows regarding September 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.


September home sales in Saskatoon were down 16 percent compared to September of 2014 and 12 percent lower year-to-date. In the opinion of Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®, "We have to keep in perspective that 2014 was an exceptional year for real estate and these lower numbers are consistent with the five-year average for sales. We are actually doing quite well through the economic challenges when compared to some other western Canadian cities."



Inventory levels within Saskatoon continue to hover at just over 2,000 available properties. Many of the listed properties are new homes and many of these are condominium units. "Almost half of the available inventory is located east of Circle Drive,” adds Yochim. "As builders feel the pinch, we can expect to see vacant condo units hit the rental market."  

Click image for a larger view.


The average home sale price of $353,587 continues to hold steady but is expected to start a slight decline with slower sales. The median sale price, on the other hand, has shown a slight decline to $330,000. According to the Multiple Listing Service®, homes were selling for just under 90 percent of the average asking price in September, the widest margin since last August. In the past couple of years, this percentage has typically been in the low to mid 90's. With a buyer’s market, it is expected that it will be more challenging for sellers to see offers close to their asking price if they are not sensitive to the market. "It's important to keep in mind that in any market a properly priced home will sell in a short period of time for top dollar if it is priced right from the start,” says Yochim. "This is not a market for speculation and overpricing."



The sales-to-listing ratio for September was 37 percent which is calculated by dividing the number of new properties listed for sale by the number of sales for the same period. A ratio of 40 percent or less indicates a buyer’s market while a ratio in excess of 60 percent is considered a seller’s market. On average in 2014 the market was firmly balanced while in 2015 it has shifted in favour of buyers. 


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


Norm Fisher

Royal LePage Vidorra

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This is a media release from The Saskatoon Region Association of REALTORS® (SRAR) regarding August, 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.


August represented the eighth straight month with a year-over-year reduction in the number of home sales in Saskatoon (Norm's note: This statement is actually incorrect. In July of 2015, residential unit sales exceeded those recorded for the same month of the previous year breaking a six-month run of annual declines). This, coupled with a continued elevation in inventory levels equates to a buyer's market. Currently there are just over 2,000 residential listings on the market in Saskatoon, an increase of 26 percent from just 12 months ago.


Considering that there were 329 sales in August, it would take six months to liquidate the current inventory of homes. Year-to-date in 2015, 2,812 homes have changed hands, a 12 percent reduction from last year. The sales to active listing ratio (percentage of listings that are actually selling) for August was 39 percent, significantly lower than the five-year average of 54 percent. This suggests that only four out of every ten homes placed on the market will result in a sale. Meanwhile the average home required 50 days to sell compared to the five-year average of 41 days. Roughly 690 of the active listings are condominiums with two thirds of these being apartment style. "The reality is that our market is feeling the effects of slower economic times," comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. "If someone is serious about selling their home they need to sharpen their pencil regarding price to ensure a successful sale." he adds.  


The number of sales are down in nearly every price range but most notably between $450,000 and $500,000 and $750,000 and $900,000. This reduction has also impacted the new home market where the number of housing starts are down significantly over 2014. Year-to-date, single family housing starts for the Saskatoon area totalled 510 representing a 28 percent reduction from 2014 while multi-family starts increased by ten percent to 798 units. The average home price continues to remain static at $357,000. The Home Price Index benchmark price of $327,700 remains virtually unchanged from a year ago for a single family home. The Home Price Index has remained fairly flat for Saskatoon indicating that prices are remaining stable for the time being. Over time this is likely to decline slightly as new listings continue to outpace total sales.


Ultimately sale price is determined by what the current market will bear, specifically what a buyer will pay, not necessarily what the seller wants. Buyers are more educated today than at any other time with access to information on the web and are unlikely to pay more than market price with more to choose from. "It's important to keep in mind that regardless of the market conditions homes still sell, provided they are properly priced to the market." comments Yochim.


According to the second quarter RBC Housing Trends and Affordability measure, it takes a household income of $72,300 to purchase a detached bungalow in Saskatchewan. The next closest province is Manitoba at $68,100, Quebec at $54,700 and the Atlantic provinces at $50,900.


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


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.


Norm Fisher
Royal LePage Vidorra

Read
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