Saskatoon real estate: Week in review (March 9-13 2009)

New listings activity declined by fourteen units over last week as Saskatoon real estate agents introduced a total of 126 residential listings to the local MLS including 121 single-family homes and condominiums (85 houses & 36 condos). Following eight weeks of gains in new listings on a year-over-year basis, this marks the second consecutive week in which new listings have been down fairly significantly over last year. Still, total active residential listing managed to grow by thirty properties to finish the week at 1,343. There are currently 827 single-family homes and 431 condominiums offered for sale within the city of Saskatoon, compared to 274 and 112 respectively for the same week last year.

New listing activity may have been off, but sales also remain sluggish for March. A total of 49 houses and condos were reported firmly sold to the Saskatoon MLS, the same volume that traded hands last week, but nearly half the number that sold during the same week last year. I had every expectation that sales levels would be lower than those recorded through March of 2007 and 2008, but I am a little surprised that we are falling short of that fifty-unit mark in what is traditionally one of the strongest months of the year for residential real estate.

Following two weeks of back-to-back drops, the average selling price of a Saskatoon home bounced back from its 2009 weekly low of $232,035and reached $280,210 by the close of business Friday. The six-week average continued to decline for the fourth consecutive week recording a loss of about $1,500 compared to last week and showing a year-over-year gain of just under $10,000. The four-week median fell over $8,000 from the week before to finish at $260,000, just $9,000 ahead of the same week last year. Looking back to 2008 our graph shows the six-week average and the four-week median going through a pretty major growth spurt for the next number of weeks. Given the rather substantial change in the supply and demand picture, it seems more likely that both of these numbers will slip below those recorded last year within the next couple of weeks.

Sixty seven price changes were recorded over the course of the week, and sixteen of thirty-three canceled or withdrawn listings came back to the MLS system for another go, most at a new price.

The average underbid for the week increased slightly from $10,577 last week to $10,929. Given the significantly higher average sale price this week, the discount actually amounted to 3.8% of the asking price, down from 4.1 last week.

The percentage of sellers who managed a deal within $5,000 of their asking price increased from 18% last week to 35%, while the $5,001 to $10,000 category got a little smaller falling from 45% to 35%. The $10,001-$15,000 category fell to just 8% from 21% the week before and the $15,001-$20,000 category moved in the same direction falling to 8% from 12%. The $20,0001-$25,000 underbids category saw some big gains growing to 10% from just 4% the week before. Four buyers managed to negotiate an accepted offer with a discount greater than $25K.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Vidorra