Strong sales in Q4 reinvigorate first-time home-buying segment
SASKATOON, January 9, 2020 -- According to the Royal LePage House Price Survey released today, the aggregate price of a home in Saskatoon decreased 1.0 per cent year-over-year to $368,954 in the fourth quarter of 2019.
The median price of a standard two-storey home decreased 2.5 per cent year-over-year to $392,517, while the median price of a bungalow increased 1.3 per cent year-over-year to $338,345 during the same period.
“We’re seeing an increased level of interest in entry-level homes; the first-time buyer market has picked up, which skewed median prices downward,” said Norm Fisher, broker, and owner, Royal LePage Vidorra.
Fisher added that increased wages, combined with lower unemployment rates, is increasing consumer confidence.
“Incomes are rising and mortgage delinquencies are now falling,” stated Fisher. “There are strong indicators for an improving Saskatoon housing market in 2020, with modest price gains around one per cent, at best.”
Nationally, the aggregate price of a home in Canada increased by 2.2 per cent year-over-year to $648,544 in the fourth quarter of 2019. Similar to the third quarter, potential buyers are continuing to come back to the real estate market. In the first half of 2019, buyers had remained largely at the sidelines waiting to gauge the potential impact of the federal mortgage stress test.
“The federal government has signaled that changes could come to the mortgage stress test mechanism in 2020,” said Phil Soper, president, and CEO, Royal LePage. “The stress test pushed people out of real estate markets across Canada temporarily. For the most part, buyers have adjusted, yet it still represents a significant hurdle as families pursue the dream of owning their own home.”
Soper added that the impact of the regulations-driven drop in demand is felt very differently in different parts of the country.
“We believe policymakers have the necessary experience to modify the tool to meet the reality of today’s Canada - that we have very different and varied economies, and by extension housing policy needs, from region to region,” said Soper.
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About the Royal LePage House Price Survey
The Royal LePage National House Price Composite is compiled from proprietary property data in 64 of the nation’s largest real estate markets. When broken out by housing type, the median price of a two-storey home rose 2.3 per cent year-over-year to $761,817, while the median price of a bungalow increased modestly by 0.7 per cent to $537,622.
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 64 of the nation’s largest real estate markets. Housing values in the Royal LePage House Price Survey are based on the Royal LePage Canadian Real Estate Market Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of over 18,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.