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®