Here's my video update on Saskatoon's real estate activity for January 2020 based on unofficial statistics from the Saskatchewan Region Association of REALTORS® MLS® system, followed by some fancy charts. A transcript of the video is available below.
The 2020 Saskatoon real estate market is out of the gate and it's looking pretty strong.
I'm Norm Fisher broker/owner of Royal LePage Vidorra, and this is a Team Fisher Market Minute, this one for January of 2020.
Over the month of January, we saw 219 Saskatoon homes trade hands. That's a 9% gain from January of last year and the fifth consecutive month in which sales demand grew on a year over year basis. In fact, if we go all the way back to January of last year, we see year over year sales gains in nine of those 13 months and in six of them, they're actually double-digit gains. So, a fairly significant increase in the demand for Saskatoon homes.
At the same time, the number of properties that are offered for sale on the multiple listing service continues to fall. We finished January with 1,326 homes, down about 9% from the end of January last year and the fifth consecutive January in which inventory declined on a year over year basis.
But what I find most interesting is what we're seeing in prices, because prices have been the most challenging metric over the past five years. We've been seeing the price prices fall in almost every category. This month for the first time, the broader market, we see the six-month rolling average, the average price paid for a Saskatoon home rising $5,000 from where it stood for the same six month period looking back a year ago. This is a fairly significant increase in turnaround.
Also, if we get looking at the home price index, which allows us to do more of an apples to apples price comparison, we look at single-family homes. The benchmark price of a single-family home rose for the first time in about four years, $1,300 that's up from where it was last year. Townhomes are up $7,000 on an annual basis. While apartments remain down just over $6,000. So there's a market that's continuing to have some challenges getting its footing.
This really is a story of micro markets and the market, the supply-demand dynamics can change significantly from one category to the next and from one price range to the next.
Let me give you an example of that. If you're shopping for a home, a single-family detached home that's priced between 300,000 and $500,000, we're finding right now that about 61% of those homes that are listed in that range are selling. That sales to listings ratio is reaching the point where realistically we could see some upward pressure on prices, especially as we enter the busier springtime. So if you're shopping in that category, don't be surprised if you run into multiple offer situations.
On the other hand, if you're shopping for a single-family home over $500,000, you're far less likely to encounter competitive activity. In fact, only 25% of the homes that are listed in that price range haven't been selling over the past 90 days.
So again, it’s very important that you're in tune with the market as it relates to the type of home that you're interested in buying or selling. If I can give you any advice or help in any way, feel free to reach out to me by email at Norm@TeamFisher.com or visit our blog at TeamFisher.com/Blog.
TeamFisher.com hosted nearly a quarter of a million user sessions and displayed more than 1.2 million pages to our visitors in 2019. If you have a Saskatoon area home you'd like to sell, we know how to get people looking at your home. Reach out to me directly to engage our team and learn about our processes.
I’m always happy to answer your Saskatoon real estate questions. Reach out by voice or text at 306-241-6676 or email me at norm at teamfisher.com
Royal LePage Vidorra