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Saskatoon Home Prices See Moderate Decrease in the Fourth Quarter of 2018: Royal LePage



Homebuyer confidence affected by employment uncertainty and increases in home financing costs SASKATOON,


January 11, 2019 – According to the Royal LePage House Price Survey released today, the aggregate price of a home in Saskatoon saw a moderate decrease in the fourth quarter of 2018, decreasing 1.7 per cent year-over-year to $371,486.


When broken out by housing type, the median price of a two-storey home decreased 0.4 per cent year-over-year to $407,286. During the same period, the median price of a bungalow decreased 3.5 per cent year-over-year to $330,663.


“High levels of inventory coupled with a significant decline in demand have led to moderate decreases in the region’s home prices,” said Norm Fisher, Broker and owner, Royal LePage Vidorra.


“The increased costs of financing a home have also contributed to the slowdown in the Saskatoon real estate market. The stress test that came into effect in January of 2018 along with interest rate increases have made it tougher for first-time homebuyers,” added Fisher.


“At the same time, the commodities sector slump continues to weigh down the city’s housing market. As our provincial economy heavily relies on mineral extraction, uncertainty regarding employment in the oil and uranium industries is affecting homebuyers’ confidence.”


Nationally, year-over-year home prices made healthy gains in many regions across Canada in the fourth quarter of 2018. The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 4.0 per cent year-over-year to $631,223 in the fourth quarter of 2018.


When broken out by housing type, the median price of a two-storey home rose 3.9 per cent year-over-year to $745,007, while the median price of a bungalow climbed 1.5 per cent to $516,950. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 7.2 per cent year-over-year to $447,915.


“The invisible hand that guides our complex economy hit the real estate reset button in 2018 and that is a good thing,” said Phil Soper, president and CEO, Royal LePage.


“Major market home price inflation through much of the decade had led to dangerous overheating in our most populous regions. Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today.” 


Read also - Global News - Mortgage stress test, higher interest rates affecting Saskatoon's real estate market

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Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

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