The Royal LePage House Price Survey and Market Survey Forecast released today showed mixed year-over-year results in the major housing types surveyed.
There was strong price appreciation in several major categories, including standard two-storey homes, which increased by 5.9 per cent to $401,750, and condominiums, which increased 4.0 per cent to $275,333. Detached bungalows bucked the positive trend, with the average price decreasing 2.2 per cent to $359,000.
“This will be a record year in Saskatoon for the number of units sold, and the second year in a row where we have seen activity well above historical averages,” said Norm Fisher, broker and owner, Royal LePage Vidorra. “The market as a whole has been clipping along with very strong demand, largely based on a robust local economy and positive employment picture.”
“Demand for two storey homes has been especially strong in Saskatoon, including quite a few new builds, which is partially responsible for the significant increase in average prices in that category,” added Fisher.
Royal LePage is forecasting stable prices as demand for homes eases. “After two very strong years where we saw buoyant activity and moderate price appreciation, we expect that Saskatoon’s market will revert to historical averages in 2015. We are ending the year with a high level of inventory available, which suggests a competitive environment for sellers in the year ahead.”
Fisher expects that the price of oil and interest rates will have an influence on the housing sector in 2015. “A prolonged depression in oil prices or a spike in interest rates are the biggest threats to the real estate market in the year ahead, as they could hurt the overall economy and labour market or affect the affordability of homes,” Fisher said.