The Royal LePage House Price Survey released today showed year-over-year house price increases for most housing types surveyed in Saskatoon. The exception to this being standard condominiums, which witnessed a slight price decrease in the first quarter of 2012.
Detached bungalows posted a modest year-over-year gain of 2.3 per cent to an average selling price of $338,750. Standard two-storey homes saw a 3.1 per cent year-over-year increase to $371,000, while standard condominiums witnessed a decrease of 1.0 per cent year-over-year to $237,000.
”Inventory levels are down slightly year-over-year yet market activity remains very strong,” says Norm Fisher, Royal LePage Saskatoon Real Estate. “Lower than average inventory levels have led to more multiple offer scenarios for certain housing types in the area. However, we are only seeing a handful of these listings sell above asking price.”
Fisher noted that, overall, the real estate market in Saskatoon was very healthy during the first quarter of 2012.?
“We witnessed a spike in sales during the last few weeks of March, which shows that buyers are still confident and eager to take advantage of low interest rates,” said Fisher.
Nationally, market activity in the first quarter of 2012 was unusually high resulting in tight inventories and strong price appreciation in most major cities. Buyers were attracted into the market by historically low mortgage rates and sellers brought listing inventory to market earlier than normal, encouraged by unseasonably warm weather.
In the first quarter, Canada’s average standard two-storey homes rose 5.0 per cent year-over-year to $398,282, while detached bungalows increased 4.4 per cent to $356,306. Average prices for standard condominiums increased 2.2 per cent to $243,153.
“Our housing market is being pulled in opposite directions by opposing economic forces,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “On one hand, there is the rapidly strengthening U.S. economy, increasing Canadian consumer confidence and what can only be called a national mortgage sale encouraging activity and bidding up home prices. On the other, we have signs of over-shooting values and strained affordability in our largest cities. We are likely to see much more modest price appreciation as the year unfolds.”
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