SASKATOON, October 14, 2015– The Royal LePage House Price Survey released today showed relatively flat to moderate year-over-year median price increases across housing types surveyed in Saskatoon. During the third quarter of 2015, the aggregate price of a home in the region rose 0.5 per cent to $368,722.
Over this period, the median price of a two-storey home in Saskatoon rose 0.6 per cent year-over-year to $434,807, while the price of a bungalow saw a slight decline of 0.1 per cent to $369,678. At the same time, the price of a condominium showed steady growth of 2.7 per cent year-over-year to $246,191.
“Weak oil prices and slowing population growth have contributed to an overall slowdown in home sales activity as buyers are remaining more cautious; however, the market is still reasonably active. We expected to be hit harder by the downturn in the energy sector than we were,” said Norm Fisher, broker and owner, Royal LePage Vidorra. “We are still seeing income and job growth, which, combined with low interest rates, is maintaining sales activity levels and stability in home prices.”
Nationally, home prices showed moderate to strong year-over-year price increases in most markets in Canada. According to the report, the price of a home in Canada increased 8.0 per cent year-over-year to $502,643 in the third quarter. The price of a two-storey home rose 9.9 percent year-over-year to $615,304, and the price of a bungalow increased 6.8 per cent to $421,757. During the same period, the price of a condominium increased 2.8 per cent to $338,684.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer, Royal LePage. “In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”
“Home ownership remains a bright light amid unsettled investment and savings options in volatile global capital markets. As we lead up to election day, it’s not surprising that all of the major political parties are acknowledging the housing sector’s prominence as the foundation on which the economy has been built for years, and a critical foundation upon which Canadians can build their savings,” continued Soper.
Beginning this quarter, Royal LePage’s House Price Survey includes the Royal LePage National House Price Composite comprising house values for 53 of the nation’s largest real estate markets through the use of a proprietary, custom-built system that analyzes a housing database containing millions of real estate transactions. The enhancements are made possible through Royal LePage’s collaboration with its sister company, Brookfield RPS, a leader in residential real estate data and analytics in Canada.