May brings buyers to Saskatoon housing market: SRAR

Sales rise 16 percent over the same month of last year

A hot, dry May brought a warmer market for Saskatoon home sellers as sales rose 16 percent over the same month of 2018.

City sales came in at 422 units, up from 363 last May and 420 the year before, the Saskatoon Region Association of REALTORS® (SRAR) reported Monday. Sales are also up 10 percent year-to-date at 1,469, up from 1,342 last year.

“Sales have rebounded significantly this year, in large part due to an increase in condo sales,” said Jason Yochim, CEO of SRAR. “Condo sales are up almost 21 percent over

a year ago. Prices have been coming down, and they are very affordable compared to most housing types.”

Year-to-date, 449 condos have sold, as compared to 372 last year. Over the same period, single-family home sales rose six percent to 1,292, up from 1,215 last year. In May, single-family home sales were up 13 percent from last May.

As sales rose, unit listings fell three percent to 911 in May, down from 942 in 2018 and 1,031 the previous year. Year-to-date listings are also down three percent; so far, 3,422 homes have been listed to the Multiple Listing Service (MLS) as compared to 3,536 last year and 4,055 in 2017.

As of the end of May, buyers had 3,164 listings to choose from in Saskatoon and area, unchanged from last year. Of those, 1,938 are in the city proper (down from 2,001 last May) and 1,126 are in surrounding towns and regions (down from last year’s 1,164). “We’re finally seeing some stabilization in the housing market, which has been in buyers’ market territory for some time due to oversupply and lower consumer confidence,”

“I suspect first-time home buyers have been very active this spring based on the condo sales,” Yochim said. “When lower-priced homes sell, it has a downward effect on the average price.”

The higher sales resulted in a 17 percent dollar volume increase over last May to $140.7 million, up from $120.5 million. That’s despite a two percent drop in the average selling price, which fell to $329,595 from $334,651.

In the Saskatoon and region, including communities such as Warman, Martensville, and Dalmeny, sales rose 14 percent in May to a three-year high of 561 units. Listings fell seven percent to 1,386, down from 1,485 and 1,553 in the previous two years. Dollar volume rose 12 percent to $181.3 million from $162.3 million last year. Yochim said, “The sales to listing ratio was 46 percent in May, which is approaching a balanced market.”

In the surrounding region excluding the city, dollar volume was down 13 percent to $31.5 million from $36.3 million. Listings fell 20 percent to 317, after two years at about 390, and sales rose eight percent to 113, up from 105 last May. The average selling price fell 19 percent, however, to $279,095, after posting $346,130 last May.

Year-to-date, the surrounding region has seen a three percent decrease in dollar volume at $120 million; a three percent drop in listings, to 1,344; and unit sales of 421, up by nine percent from last year.

Jason Yochin

CEO of the Saskatoon Region Association of REALTORS®