Josh's Cell 306-747-9388 | Email Josh@SaskatoonRealEstate.com |

RSS

YTD Home Sales Down 5%

December residential home sales on the Multiple Listing Service® system (MLS® System) in Saskatoon totaled 164 transactions, 20% fewer than December of 2017 which recorded 205 residential sales. The region surrounding Saskatoon had 43 MLS® sales in December of 2018, only one less than the previous December. The total annual number of residential home sales for 2018 in Saskatoon totaled 3,329 units. This is a 5% decline compared to the total number of home transactions for 2017. This represents the fourth straight year of a decline in annual home sales in Saskatoon. By comparison there were 4,417 MLS® sales in 2014, an overall reduction of almost 25%. There was no change in the total annual sales for the surrounding region with 986 residential MLS® transactions.

The total dollar volume recorded for residential MLS® sales in Saskatoon in December was $55.6 Million, down 20% from December 2017. The total dollar volume for the entire year reached $1.108 Billion, 8% lower than 2017. The combined dollar volume for Saskatoon and region for last year was down 4% from 2017 at $1.524 Billion.

Residential MLS® listing totals for the year continued to be lower than previous years. A total of 7,956 residential listings were recorded for Saskatoon on the MLS® System in 2018. This is an 11% reduction from 2017’s total of 8,969, representing over 1,000 fewer new listings. The five-year average for new listings in a calendar year in Saskatoon is 9,081. “Even though overall sales are down, fewer new listings has helped contribute to fewer properties available to buyers in the Saskatoon market.” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR). The total number of active listings at the end of the year was 1,487, consistent with the five-year average of 1,480 available properties. The highest level of active properties was in July of 2017 when there were 2,210 active listings in the city of Saskatoon “Available properties will vary depending on neighborhood, price range and style.” cautions Yochim “some price ranges with still have a good supply to choose from while others will not. It’s important to remember that REALTORS® have the greatest access to available property” he adds. REALTORS® work in the market every day, subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession. This is not the case for those who sell real estate in the province and who are not members of an association of REALTORS®. 

When it comes to home price trends, the best indicator of what is happening with home prices is the Home Price Index. The Home Price Index establishes attributes for a typical single-family home with a base value in 2005. From that starting point, changes in value are recorded over time to get a better sense of what is happening to pricing and where prices may be trending. The value for the typical single-family home in January of 2005 was $140,400. This value reached its peak in May of 2015 at $329,500. At the end of December, this value is at $307,000, down from $310,900 in November. This value is virtually unchanged from a year ago, however, it has been trending downward since the middle of 2018. For more information on HPI go to contact a member of the SRAR or visit saskatoonrealtors.ca .

Read

Home Sales Soften in July 


The warm weather in July appears to have taken some of the purchasers out of the Saskatoon market with a monthly decline in unit home sales of 16% compared to July of 2016. The year to date unit sales are down nearly 4% for Saskatoon compared to the first seven months of last year. Sales in the region surrounding Saskatoon increased just over 17% for the month compared to last July, while the year to date numbers declined slightly by 2.6%. Year to date there have been a total of 2,155 unit sales within Saskatoon and another 596 in the region surrounding the city. The total dollar volume recorded for Saskatoon and region year to date is $989 Million off 5% from last year.

The number of active listings in Saskatoon has reached a new peak at 2,210 with an additional 1,125 properties available in the market outside Saskatoon. At the current rate of monthly sales it would take just over seven months to liquidate the current inventory completely. The average home is taking approximately 50 days to sell which is consistent with the past two July’s. The homes that are selling are seeing a sale price that is at 96.7% of the asking price. “These stats would indicate to me that those who are serious about selling are pricing to market and getting very close to their asking price and in much less time than the current 50 day average.” According to Jason Yochim CEO with the Saskatoon Region Association of REALTORS®.

The number of listings taken year to date in the Saskatoon and region market is consistent with last year at 8,693. In Saskatoon there have been 5,795 properties listed since January 1st, very similar to numbers for the past two years.

Prices continue to show signs of slight decline as well. The average sale price in July of 2017 was 6.4% lower than July of 2016. Year to date, the average price has slipped from $351,855 to $348,960. The median price year to date also decreased slightly from $335,000 to $329,500. The Composite Home Price Index (HPI) benchmark price for July declined by 2.2% compared to last July. The HPI is considered to be the best indicator of the trend in home prices and measures the rate of change month over month. “Based on the theory of supply and demand it is reasonable to expect that prices are not likely to strengthen until the number of active listings declines.” comments Yochim. “It is important to remember that these changes in pricing are an aggregate of the entire market and will vary based on area, type of home and availabilty of similar properties to the subject. Access to this information is critical to accurate pricing and can be obtained through consultation with one of our members.”

Read

Positive Indicators in Saskatoon Home Market

Year to date, the Saskatoon home market shows positive signs in a few of the key indicators. “There are a few key statistics that we watch ever month to get a sense of where our market is at and where it may be headed” according to Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® .“We keep a close eye on the number of transactions, the inventory levels and the change in pricing.” He adds. 

Year to date home sales are up 4% over 2016 with 558 unit sales. This is comparable to the number of home sales in 2015. The total dollar volume for those sales was just over $186 million, representing a 2% increase over last year. At the end of February, the inventory level for available residential property on the MLS® system in Saskatoon was 1,659 units, 5.4% lower than last year. The lower inventory levels are largely due to a significant drop in the number of new listings added to the MLS® system. So far this year there have been 1,337 new listings in the system compared to 1,410 last year. When comparing new listings for the last month, there were 15.7% fewer properties added to the market this past February than last February. 

A decline in new listings coupled with an increase in sales resulted in a sales-to-listing ratio of 37.4%in February. This is a significant increase from last February where this ratio was 30.9%. A market with a sales-to-listing ratio below 40% is considered to be a solid buyers market. This indicates a positive move towards a more balanced market. “Although we are seeing these positive indicators quite early on, these statistics indicate a shift in the marketplace in a positive direction,” comments Yochim. 

Home prices remain relatively unchanged year to date with the average price down a mere 0.7% to just under $340,000. The median price of $320,000 represents a slight drop of 1.6% year over year. The Home Price Index (HPI) is considered to be the most accurate measure of home values and where the market prices are trending. The HPI composite price is an aggregate of various residential home types in a particular market and is a measurement of change in value over time. A composite value was established with a base year and has been indexed on a monthly basis. The composite value in February was $297,900 representing a 1.2% decrease from a year ago. This value had been on a downward trend since mid-2016 which is not surprising considering elevated inventory levels through the year and a buyers market. 

The average number of days for a home to sell in Saskatoon was 54 days. This is only slightly longer than in 2016 with an average of 52 days. Because today's real estate buyers are well educated on the market, homes are selling at 97% of their asking price which is consistent with last year. 

Read

Positive Start to 2017 Home Sales

Home sales in January were cause for optimism for the year ahead with a 6% increase year over year. Home sales of 185 units last month represented the highest January total since 2014, the five-year average for January is 195. Another positive indicator is the number of homes available for sale. At the end of January, there was a combined total of 1,592 homes for sale in the Saskatoon market, representing the second lowest monthly total in almost two years. The lowest inventory level was December of 2016 with a total of 1,443 properties on the market. “An increase in sales in a typically quiet month is very encouraging” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® “especially in the wake of the tougher mortgage qualifications introduced last October.”

At current inventory levels, anticipating no increase in demand and no new properties listed for sale, it would take over eight months to liquidate the current inventory of properties. The five-year average for available inventory in the Saskatoon market is just under five months. The “sales to listing ratio” is an indicator of whether we are in a buyers or sellers’ market. It is determined by dividing the number of sales by the number of new listings for a period of time. When this ratio is at 50%, the market is considered balance. The last couple of years has favored buyers in the marketplace with an average sales to listing ratio of 40%. January typically has an uptake of listing activity and quieter sales activity which is reflected in a sales to listing ratio at 26%; the five-year average is 30%.

Homes priced below $400,000 saw a much-needed increase in activity compared to last January with 143 sales between $200,000 and $400,000, a 20% increase year over year. The average sale price for January of $341,800 represented a 4% decrease compared to last year. In 2016 a steady number of sales over $750,000 helped stabilize the average price in spite of a 5% decline in sales. This emphasizes that using an average to determine the true market picture is easily misleading. The median price for last month was $318,500 which was the lowest median price in almost five years. A more reliable indicator of the market is the MLS® Home Price Index® (HPI). It is considered to be the most accurate determinant of where a real estate market is trending. The HPI composite benchmark price has also been trending downward, although very slightly for several months. 

In January, on average it takes 54 days to sell a home in Saskatoon which is consistent with the five-year average of 51 days. This compares to 45 days which is the average of the past 5 years. “In any market, a home that is priced to current market conditions should sell in even less time, often within a week or two.” comments Yochim. “Buyers are well educated on the market and are not fooled by optimistic sellers. However, they are willing to pay market price for the right home in any market. For homes that are selling, the sale prices are being realized within 97% of the asking price.”

Read
The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.