CONTACT

Saskatoon house prices level off after peaking in first half of 2010: Royal LePage

The Royal LePage House Price Survey released today showed softening price appreciation across most housing types surveyed in Saskatoon. The modest year-over-year price increases reflect strong activity at the end of 2009 and beginning of 2010, but market activity slowed down considerably in the third quarter of this year. Overall unit sales for the third quarter were down 18 per cent from last year.


"Along with this slowdown in activity, we have seen a considerable increase in inventory compared to last year," said Norm Fisher, Royal LePage Saskatoon Real Estate. "Buyers are not feeling a lot of pressure to act quickly right now, so demand is dropping off."


Detached bungalows led the way with year-over-year price gains of 5.5 per cent, selling for an average of $328,750 in the third quarter. Standard condominiums sold for an average of $230,000, up 4.5 per cent from last year, while prices for standard two-storey homes were up 2.7 per cent year-over-year, selling for a third-quarter average of $350,000.


"It's not clear why detached bungalows experienced the strongest price gains, however lower priced properties are always most in demand," explains Fisher. "We're beginning to see prices level off after peaking at the beginning of 2010."


Detached bungalows and standard condominiums showed the greatest sales volume decreases for the third quarter, with single family homes under $400,000 down 30 per cent and condos under $250,000 down 25 per cent from last year. Multiple offers are rare, except when properties are priced below market value. Houses typically sold below asking price.


"With this softening of the market, sellers need to price their homes accurately," says Fisher. "However, Saskatoon's population is growing steadily as our employment rates are among the best in the country - so buyers are definitely out there."


Nationally, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.


"Most Canadian housing markets cooled in the third quarter. In fact, the year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year.  Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. Looking ahead, it is very unlikely that the period from now to year-end can keep pace with the activity levels posted in the overheated market of the final quarter of 2009."


In the third quarter, the average price of a detached bungalow in Canada was up 4.6 percent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 percent to $360,329 while standard condominiums rose 3.9 percent to $226,481.


"House price growth now sits just below the long term annual average of approximately five per cent, but once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track.  Canadian homeowners will be pleased," said Soper.

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.
 

Note: We are in the process of bringing this blog home to the TeamFisher.com domain and we have a lot of stuff to move! Another 700 posts can be found at normfisher.com where they'll remain until we can get them moved here.

The Saskatoon Region Association of REALTORS® (SRAR) IDX Reciprocity listings are displayed in accordance with SRAR's MLS® Data Access Agreement and are copyright of the Saskatoon Region Association of REALTORS®.
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatoon Region Association of REALTORS® displayed on this site is refreshed every 2 hours.
Google Analytics Alternative