Please note that many of the association’s comments touch on “year-to-date” numbers, and some are based on all sales within the board’s trading area. The charts which you see, as always, reflect activity within the city of Saskatoon on a month to month basis over the past several years.
There are a few interesting trends to note as we approach the end of 2013. Overall, year-to-date, there is an increase in the number of homes selling above $350,000. However, in the past two months homes sales in this range have fallen when compared against the same period during the previous year. According to Jason Yochim, Executive Officer with the Saskatoon Region Association of REALTORS®, "The median sale price for homes priced above $400,000 has actually decreased over the past couple of months as we see more inventory, especially in new construction. Also, the spread between list and sell price tends to widen as you move up in prices." The sales to listing ratio, which compares the number of units listed to those sold for the period, is higher in the lower price ranges versus the upper end. This is again due to lower levels of inventory in the lower price range.
“The number of new listings for 2013 is up ten percent over last year, however many of these listings are previously listed properties that failed to sell as a result of being overpriced and have been re-listed at a reduced price in order to bring them closer to market," adds Yochim. Further evidence to support this is a two percent increase in total unit sales (all housing categories and price ranges) compared to 2012.
The average selling price for the year is up four percent over last year (flat when comparing November to last November) which contributes to the overall sales volume pushing closer to 1.5 billion in Saskatoon.
Overall the market continues to be healthy with a strong demand for homes in the $300,000 to 500,000 price range. The surplus of inventory priced over $500,000 is due to a couple of factors such as unrealistic expectations when pricing as well as over 200 new home builders with product on the market. This does not mean that the "bubble has burst” and the market is falling headlong into a buyers' market, but rather a subtle reminder that although we are in growth mode, the growth and price increases have limitations.
The market will always determine the true value of homes through supply and demand and eventually the pricing must follow suit. "This is just a gentle reminder to sellers that regardless of what they feel their home is worth, they have to respond to what the buyer is telling them and price to market.”
I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call of email me.
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Norm Fisher
Royal LePage Saskatoon Real Estate