Home Inventory Levels Declining

A year over year decline in home sales and new listings in February contributed to a declining availability of homes in the Saskatoon market. At the end of last month there was a total of 1,588 active residential listings in Saskatoon. This represented a 4% decline from a year ago when there were 1,659 properties available. Although the number of sale transactions in February, 211, represented a 6% decline from the same month last year, strong sales in January helped the overall sales year to date to remain 1% ahead of last year. Year to date, a total of 413 residential sales have been recorded on the MLS® in the city of Saskatoon. In February, REALTORS® in Saskatoon listed a total of 1,159 residential properties, this is a 14% decline compared to last February’s number of 1,332.

In February of 2016, a total of 1,410 homes were listed for sale. The number of transactions that occurred in Saskatoon was 203 units which represents an 11% increase over January of 2017. The overall dollar volume for home sales in Saskatoon was just under $70 million which is a 6% decline from last February. The year to date total volume of transactions is unchanged from last year at $139 million. Year to date sales in the region surrounding Saskatoon, which includes the cities of Warman and Martensville, totaled 122 units representing a 14% increase. The overall dollar volume for this surrounding market was just under $39.5 million for the first two months of the year, an increase of 12% compared to last year. “For the past couple of years inventory levels have hovered around 2,000 available properties.” Comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® (SRAR) “It is definitely a positive trend to see inventory levels shrinking, this is helpful for slowing price decline.” he adds. The average sale price for a home in Saskatoon slipped 1% in February.

The Home Price Index (HPI) composite benchmark value declined only very slightly in the last 30 days to $292,800. Although this is its lowest point since February of 2012 the decline in the composite price appears to be slowing. With the exception of a couple of months in the spring of last year, the HPI composite value has been in an overall decline since August of 2016 when the value was $317,600. 

Housing Sales Up Over January 2018

January home sales in Saskatoon are off to a positive start in 2018. The number of transactions that occurred in Saskatoon was 203 units which represents an 11% increase over January of 2017. The five year average for January is 194 units. Last month’s sales activity also resulted in an increase in the overall dollar volume of 10.5% to $90,673,143 representing the highest dollar volume for January since 2014. Sales in the region surrounding Saskatoon, which includes the cities of Warman and Martensville showed a 27.5% increase with 65 transactions and an 11.7% increase in dollar volume at $18,049,600.

“While it is still very early in the year, the past three months have shown trends of increasing sales for Saskatoon, which is certainly a positive sign after many months of lower sales.” according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® (SRAR) “It is good to see inventory levels shrinking as well which will help with upward pressure on pricing in time.” he adds.

The average and median home price in Saskatoon in January also increased. The average sale price for a home in Saskatoon was $344,771, up 1% from last January, while the median price increased by 4.1% to 330,000. Significant increases in the number of homes selling in the higher price ranges contributed to these upward pricing changes. Overall the number of sales between $400,000 and $1M increased by 45% with 64 sales. The number of homes that sold in January between $500,000 and $750,000 made up just over a third of the 64 transactions. The number of home sales between $200,000 and $300,000 remained strong and consistent with last January at 56 transactions. Many of these would be multi-family sales which helps to absorb inventory in that sector of the market.

The Home Price Index (HPI) composite benchmark value declined by 4.1% in January to $293,300, its lowest point since February of 2012.

With the exception of a couple of months in the spring of last year, the HPI composite value has been in an overall decline since August of 2016 when the value was $317,600. “If inventory levels continue to decline due to absorption and fewer properties being listed, home prices should expect to see some increase later in the year.” predicts Yochim. The number of active listings in Saskatoon at the end of January was 1,529, the lowest level in the past three years for January and a 4% reduction from last year. This was aided by the increase in sales and a 14% decline in the number of new listings for January.

Home Sales Increase in December

Home sales of 205 units in Saskatoon, was up 11% in December when compared to the same month in 2016. Sales activity in the area surrounding Saskatoon saw a 13% increase for December. This increase in activity could be partially attributed to the mortgage rule changes for conventional buyers that took effect January 1st 2018. Home buyers with 20% or more down payment now have to qualify at an interest rate that is 200 basis points higher than the posted rate, or the Bank of Canada’s five-year rate, whichever is higher. Listing activity on the other hand, declined dramatically with an 18% reduction in new listings for December year over year. “This decrease in listing activity could be the result of seller’s fatigue from having been on the market for an extended time period without securing an offer.” according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® (SRAR) “The increase in December sales and decline in hew listings is a positive for decreasing high inventory levels” he adds.

The year to date story for 2017 however is one that indicates a slower market overall when compared to 2016. The overall sales volume recorded by the SRAR was just short of $1.6 Billion for the year representing a 9% decrease from 2016. This is the third straight year of decline since the $2.1 Billion market peak realized in 2014. Home sales of 3,491 units in Saskatoon for 2017 represented a 5% decline from 2016. This is significantly lower than the five year average of 3,957 sales. In 2017 there was a total of 8,972 homes listed for sale in the Saskatoon market representing a 3% decline from the year previous. The sales-to-listing ratio for the year was 35%, which is a ratio of the number of sales for the year when compared to the number of new listings. In other words, roughly a third of the homes listed for sale ended up actually selling. The number of days on market for a home in Saskatoon in December was 61. This was a sharp increase from 51 in December of 2016 as well as the five year average of 52 days.

Not surprisingly, with lower sales and still a large inventory of homes to choose from, home prices continued to see downward pressure. The median price for a home in Saskatoon declined by 3.3% in December to $324,000 while the average price showed a half point decline to $339,520 for the month. The Home Price Index (HPI) composite benchmark value declined by 3.7% in December to $295,100, its lowest point since March of 2012. The HPI composite value has been in an overall decline since August of 2016 when the value was $317,600.

“Successfully selling a home in this current market requires more that information” comments Yochim “Sellers need the guidance to understand how historical sales data impacts their pricing decision.” 

November Home Sales Increase

Home sales in Saskatoon for the month of November were up 7% compared to November of 2016 with a total of 257 residential sales. This increase could be attributed to ideal conditions for home buyers combined with impending mortgage rule changes slated for January that will affect conventional borrowers. The year to date sales however, reflected a 6% decrease with 3,287 transactions. Homes that sold between $300-500,000, made up 1,606 of the year to date sales, or roughly half of the residential sales. Although homes in this price range are the most active segment of the market place, activity in this range has declined by nearly 12% compared to the first eleven months of 2016. Sales activity for homes that sold between $750-1,000,000 remained unchanged compared to last year with a total of 45 units. Homes that sold in excess of $1,000,000 was slightly down year over year with 14 sales compared to 16 in 2016.

Home sales in the market surrounding Saskatoon showed a significant bump in activity in November with 71 transactions, or a 22% increase from November 2016. Of these sales, 34 occurred in the cities of Martensville and Warman in November, compared to 26 last November. Inventory levels also continue to be elevated in the areas and cities in the Saskatoon region where there was 926 available properties for sale at the end of November.

The number of active residential listings that were on the market at the end of November was 1,826, 8% higher than last year. The number of new listings added to the market in November was 583 compared to 652 in the same month last year. The sales to listing ratio compares the number of sales for the month, relative to the number of new listings. The sales to listing ratio for Saskatoon in November was 44.4%. In November it took an average number of 58 days for a home to sell in Saskatoon. “If you are looking for a home, this is an ideal time with plenty of selection in most price ranges and areas as well as low interest rates” comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®, “As for sellers who need to sell, they need to have a true sense of the market and price accordingly to sell within the average number of days.” He adds.

The average price continued to decline.  The MLS® Composite Home Price Index (HPI) Benchmark Price continued its steady decline for several months, down by 4.05% from a year ago. The Composite HPI measures the rate of change in a benchmark price for a typical home and is the most accurate indicator of pricing direction in a market.

Buyers Market Continues

Conditions remain ideal for those in search of a new home in Saskatoon. There was a total of 1,967 active listings at the end of October in Saskatoon plus an additional 1,022 available residential properties in the region outside Saskatoon. This is an increase of almost 12% in active residential listings compared to the same point last year. With upcoming mortgage rule changes in the new year, relatively low interest rates and more available homes, this is an ideal time for buyers to tie up that purchase. The sales to listing ratio for Saskatoon was just over 40% in Saskatoon in October. This means that for every 10 homes that were listed, four were successfully sold. The number of sales for October in Saskatoon was 287 units. Although this was an 8% decline compared to October 2016, it represented an increase of 10% over Septembers sales of 262. Year to date sales for Saskatoon a the end of last month were 3,030 units which is a 6.7% decrease for the same period last year. Year to date a total of 8,069 home were placed on the market in Saskatoon, down slightly from 8,217 the previous year. “I expect that there may be a slight spike in sales as the year winds down” comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®, “this would be due to recently introduced mortgage qualification rules for conventional buyers plus a sense of upward pressure on interest rates.” The federal government continues to address issues with overheated markets in Canadas two largest cities. These rule changes however affect local real estate markets much differently.

The average days on market for a home in Saskatoon was 54 days which is unchanged from September and slightly higher when compared to October of 2016 where it took an average of 50 days to sell. Not surprising, with higher inventory levels, and declines in sales, the average selling price for a home in Saskatoon continues to decrease, with a year over year decline of 3.2% to $331,889. The Medan price however remained unchanged at $330,000.  The MLS® Composite Home Price Index (HPI) Benchmark Price increased by 5.1% to $328,600. The Composite HPI measures the rate of change in a benchmark price for a typical home and is the most accurate indicator of pricing direction in a market. This increase would suggest that in spite of a decline in the average home price, the trend is moving upward for home prices.

Buyer’s Market Continues

A slight decline in home sales year over year, low interest rates and stable home prices coupled with elevated inventory levels, continues to make Saskatoon an ideal market for home buyers. At the end of August there were 2,183 active listings in Saskatoon, just slightly down from the record set last month. “In the coming months, home buyers will look back with hindsight and realize how opportune the market was with all of these elements in place.” According to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® “It is only a matter of time before the market shifts as it always does.” The concern is that buyers waiting for the bottom of the market in order to make a purchase, may end up paying more when buying on the upswing.

The average home is taking approximately 55 days to sell which is the greatest number of days in the past several years. The five year average for days to sell in August is 46. Homes that have been priced relative to this market will see a sale in much less time. The sales to listing ratio compares the number of new listings against the number of sales for the month. In August, the sales to listing ratio was 41% which is consistent with the past three months. This means that for every five home listed there are two sales. The sales to listing ratio year to date was 37.7% which is down 3.5% compared to 2016. Furthermore, based on the current level of home sales, it would take between six and seven months to clear out the active listings, this is above the five year average of just over five months.

Two thirds the way through the year, Saskatoon and area saw a total of 3,344 transactions, down 5% from last year. The total number of homes listed for sale, year to date, was 9,904 which is virtually unchanged from 2016. The total dollar volume for Saskatoon and region year to date was $1,139 billion, down 9% from the same period last year. Within the Saskatoon market, the number of transactions year to date was 2,484 representing a 5% decline from the same period last year.

With lots to choose from ,the average and median price continue to show signs of slipping. The average price year to date declined by 1% to $347,414 while the median price declined by 1.5% to $329,950. Considering the challenging economy, high supply of housing and a softened demand, pricing has not been dramatically impacted so far. “Pricing of a home is one of the most important decisions in a successful sale.” Comments Yochim, “REALTORS® are the most informed when it comes to knowing the market for a specific property at a specific time.” he adds. 

Competitive Market for Some Home Sellers

Home sellers need to put forward their best efforts when pricing and presenting their home for sale in any market but especially now with a total of 2,112 active listings in Saskatoon. This is the highest number of homes for sale eclipsing the peak of 2,081 in June of 2015. “Pricing is the most important decision a seller can make, especially in a buyers’ market.” advises Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. “This is something that requires the assistance of an objective and educated REALTOR® to reflect the market.” Of these, just under 1,300 are single family homes and about 850 are condominiums with close to 500 of these apartment style. Additionally, 350 of the apartment style condominiums are priced between $150-350,000, making this a very competitive segment of the market. With 848 single family homes priced between $250-500,000, there is a lot of choice for buyers who are being selective on what they want and what they want to pay. Homes priced over $500,000 total 278 available properties with 76 of these in excess of $750,000. The MLS® system saw 1,035 new listings for Saskatoon in May, a 7% increase over last May, and the highest number of new listings recorded in a single month.

In May there were 423 sales in Saskatoon representing a 7% increase compared to last May. So far year to date the total number of sales is down 2% at 1,459 units. Price ranges between $250-500,000 showed positive increases to the number of sales year over year. In 2016. In May of 2017 there were 358 sales in this price range compared to 329 last May. There was a 13% decrease in the number of sales priced between $500-750,000 in May of 2017. Year to date there were 12 sales in excess of $1,000,000 in Saskatoon. Six of these sales were single family homes, two were bare land condo units at the Willows and one sale was a downtown apartment unit. The home that sold for the most so far this year was $2,000,000.

The average number of days required to sell a home in Saskatoon is 48 days. The five year average for May is about 41 days. Based on the number of sales that occurred in May and the number of homes available on the market, it would take 5 months to liquidate the current inventory of properties for sale. The average selling price continues to remain stable at $$349,000. The median sale price also remains relatively unchanged year to date at $329,250. Although the total MLS® dollar volume was up 11.5% when comparing this May 2017 to last, the year to date dollar volume is down 1.3% at $670,000,000.

The market surrounding Saskatoon showed an increase in sales of 10.4% in May, however year to date sales in that market were down 8%. The average selling price for this area is up 7% year to date at $331,450. This market includes the cities of Warman and Martensville as well as other surrounding communities and acreage property.  .

Home Sales Down So Far in 2017

Total home sales in Saskatoon year to date saw a 5% decrease with a total of 1,037 units changing hands. The month of April was also notably quiet with a total of 315 sales, a 16% decrease from 2016. Listing activity is also down by 4% compared to last year with a total of 3,038 new listings introduced to the market so far this year. Listing activity for April was also lower by 10% compared to April of 2016. Inventory levels remain quite high with a total of 1,975 active listings at the end of April. This is considerably higher than the five-year average of 1,700 units. For the last three years, there has been in excess of 1,900 homes available for sale at the end of April. It would be ideal to have around 1,500 units available for sale at this time of year. “Higher inventory levels are a great opportunity for buyers for selection and a reasonable purchase price,” says Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® “The market will eventually shift and those who waited will end up with less selection and more competition for the home they offer on” he adds. 

Higher inventory levels typically mean lower prices, however, for homes priced over $600,000, there has been an increase in the number of sales which sustains the average price even with fewer sales. Even though the average price remains unchanged year over year, the median price has decreased by 1.9%. So far in 2017, there is a 65% increase in homes that sold over $600,000 with a total of 93 sales compared to 56 in 2016. In April alone there were 19 sales over $650,000 compared to just 9 last April, three of the sales were in excess of $1M. Comparatively, there is a notable decrease in homes selling below $500,000. By the end of April 2016 there was a total of 438 home sales, so far this year there are only 358. Year to date the sale of single-detached properties declined by 11% while the number of multi-family unit sales increased by 4%. 

The sales to listing ratio of 37% also confirm that we are firmly in a buyer’s market. This is the lowest it has been for the month of April in over 5 years. At the current rate of sales, it would take over six months to liquidate the existing number of homes that are for sale, the five-year average for months of inventory is 4.5 months. Currently, it takes about 50 days for a home to sell in Saskatoon, just slightly longer than the 46 days of a year ago. Homes that are selling continue to realize sale prices in excess of 97% of the asking price. This underscores the importance of proper pricing in a buyers market. “A buyers market is not one for speculative selling” cautions Yochim. “Today's consumers are very well informed and with many homes to choose from are not afraid to move on if the seller is unwilling to respond to an offer at market value” he adds. 

Activity in the markets surrounding Saskatoon continues to experience a decline in both sales and listing activity. A total of 249 sales at the end of April is a 14% decrease from 2016. The number of homes listed for sale for the first four months of 2017 is down by 13%. The sales to listing ratio for this market is 28% while the time it takes the average house to sell is two months. Homes are realizing sale prices of 94% of the asking price. The number of active listings for the area surrounding Saskatoon, which includes the cities of Warman and Martensville, was down 15% with 979 available properties.

Slight Downward Pressure on Home Prices 

At the end of the first quarter the number of MLS home sales was 723 units or a 1% increase over last year. The number of properties listed for sale year to date was 2,193, just 2% lower than the first three months of 2016. “Although the first quarter unit sales are comparable to 2016, pricing seems to be slipping slightly” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® “The median price of $320,000 is down 4.3% from a year ago and the average price of $342,100 is down 1.5%.” he adds. The Home Price Index (HPI) published by the Canadian Real Estate Association indicates a downward trend in pricing as well. The composite price, an aggregate of all home types, for Saskatoon has been trending downaward since August of 2016 when the benchmark value was $309,500 compared to $297,900. This composite value reached its peak of $313,800 in July of 2015. The HPI is based on a benchmark value of $133,400 established in January of $2005. This value is indexed every month thereafter representing the changes to that base value. The downward pressure on pricing is likely to remain until there is a decrease in the current inventory of just over 1,850 active listings or an increase in demand.  

Multi-family sales of 220 units was up year to date by 18% compared to 187 unit sales last year. The number of single family sales of 510 units was a slight decline of just over 4% year over year. The federal changes to mortgage qualification introduced in October of 2017 no doubt have had an impact on some who found it harder to qualify for a single family home. These changes increased the number of multi family transactions due buyers qualifying at a substantially lower purchase price. This is reflected in a 5% increase in sales between $200,000 and $350,000 in the first quarter. During this same period, homes priced from $350,000 to $600,000 saw a 13% decline in unit sales.  

There is currently enough existing inventory to last almost six months based on current sales activity. This is slightly higher than the five year average of 4.84 months. For the homes that do sell, currently on average it takes 47 days. This is two days more than the five year average. These homes are selling at just under 98% of the asking price. This is a reflection of the “intelligent buyer” that we see in today’s market place. “Today’s consumer has access to detailed information at their fingertips and know very well what the true market price of a home should be. Sellers are equally informed and when they are able to think objectively, they price to market and the result is a quicker sale with the sale price tight to list.” according to Yochim. The problem lies in most of us unable to be objective even in the face of raw data. The mindset of many home sellers is that their home is worth more than the one down the street because they used ‘heavy duty’ nails in the construction or similar rationale. “This is one of the most critical reasons for enlisting the advice of a professional REALTOR® in pricing your home.”  

Activity in the area surrounding Saskatoon has experienced a decline of almost 17% in the number of sales for the first quarter of the year with 167 total sales. A positive here though is the average price is up 9.2% and the days on market is 64 days compared to 70 for last year. Martensville and Warman have not been affected the same way in the past three years. The city of Martensville experiences 38 sales and 153 listings so far in 2017. By comparison, in the first quarter of 2017 Warman recorded 57 sales and 144 new listings. In the first three months of 2015 Warman had 81 sales compared with 26 in Martensville.  The Saskatoon Region Association of REALTORS® has a membership of just over 600 licensed and knowledgeable REALTORS® who can provide sound market advice. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.  

Accurate Pricing Key in Successful 2017 Market

Year over year unit sales for the city of Saskatoon saw a 7% decline in 2016. As at December 31, there was a total of 3,679 transactions recorded versus 3,933 in 2015. The total dollar volume for Saskatoon also indicated a 7% decline by years end. There was also a decline in the number of new listings in 2016 of 5% with 9,290 properties placed on the MLS system in Saskatoon last year. In other words, 38% of the homes that were listed ended up selling which is considered a firm buyers’ market. This ratio is what is referred to as a sales-to-listing ratio. A ‘balanced market’ is when one home sells for every two listed and is considered a balanced market at a 50% sales-to–listing ratio. The market for the month of December was in balanced territory with 191 sales and 392 new listings.

The market surrounding Saskatoon which includes the cities of Martensville and Warman saw a year end decline in unit sales by 11% with a total of 1,010 sales by December 31. The total number of new listings for 2016 in the markets outside of Saskatoon was 3,192, a sales-to-listing ration of just under 32%. The city of Martensville saw a 10% increase in unit sales in 2016 while Warman saw a whopping 35% decrease in units sold from 2015 to 2016. Other bedroom communities surrounding Saskatoon saw very little change in units sold year over year.

A home in Saskatoon took an average of 51 days to sell realizing 96.7% of the asking price on average. “There are buyers out there who are ready to act and are willing to pay market value.” Comments Jason Yochim, CEO, Saskatoon Region Association of REALTORS®, “What this tells me is that if a seller is serious about selling their home the best thing they can do is get sound advice on pricing to the current market we are in. The result is a quicker sale for the maximum sale price. Buyers are well educated and not often fooled into overpaying.” He adds.

The average selling price for a home in Saskatoon in 2016 was just over $350,000 which was only a decline of 1% compared to the average selling price of $354,000 in 2015. This average price was maintained by a year over year increase in the number of homes that sold over $750,000.

The MLS® Home Price Index® is considered to be the most accurate determinant of where a real estate market is trending. The composite benchmark value is an aggregate value of various property types and is used to compare changes in market values and trends. The composite benchmark value has been trending downward slightly since August of 2016. The composite value of $299,700 is down 1.6% from the same period in 2015 and looks to continue downward for the near future.

“2017 is not likely to see a significant change in market conditions, however being properly informed on what those market conditions are and how to properly price is where one of our REALTOR® members is invaluable” adds Yochim. “One of the best ways to stimulate an economy is through a home sale. The average home sale in Saskatchewan generates nearly $50,000 in spin off economic activity. Multiply that by 3,700 transactions.” He adds. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

The month of November saw a decline in sales activity as well as new listings coming on the market in Saskatoon and region. Total dollar volume year to date was $1.65 B, a 4% reduction from 2015 and 18% lower than the same period in 2014.The number of homes that sold in Saskatoon for November was 243 units representing a 14% reduction compared to November 2015. As of the end of last month there was a cumulative total of 3,489 home sales, this is 7% lower than a year ago. The number of homes listed for sale to the end of November 2016 was 8,897. Currently there are1,687 residential properties available for sale in Saskatoon, only the month of January had less product available with 1,612 units. At the current level of sales it would take nearly seven months to liquidate this inventory.

 The average selling price continues to remain virtually unchanged at just over $350,000. Two years ago the average selling price two years ago by comparison was $357,000, at a time when the market was more active. “An increase in sales in the higher end homes has helped to support the average price in the Saskatoon market” states Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. Sales in every price range below $750,000 saw decreases in unit sales however homes priced above that increased year over year. For sales over $1M there were 25 units sold year to date compared to 13 units a year ago. Homes in the price range between $750-800,000 were up 50% year to date over 2015.

 The current sales to listing ratio for November was 37% which is firmly a buyers’ market as it has been all year. Homes are currently taking 50 days on average to sell in Saskatoon with sellers realizing 97% of the asking price. “These statistics tell me that sellers who price to the market will realize a sale in much less time than the average of 50 days and close to their asking price. Those who do not price to market are typically responsible for the low sales to listing ratio.” Comments Yochim. “Buyers are more educated than at any other time and typically know where the market is at.

 There are positives in this quieter real estate market. The recent selling out of the much awaited River Landing condominium project in less than four days proves that location, location, location is key in any market conditions. This occurred in spite of an oversupplied condominium market with somewhere in the neighborhood of 1,000 multi-family units available for sale.

 “The best advice I can give to those who are needing to sell is to get sound pricing, marketing and timing advice from a professionally licensed and trained REALTOR® member of The Saskatoon Region Association of REALTORS®. Real estate is local to specific markets in Saskatoon and every seller’s situation is unique. Impartial and objective advice is critical in a successful sale of residential real estate.” cautions Yochim. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

The month of November saw a decline in sales activity as well as new listings coming on the market in Saskatoon and region. Total dollar volume year to date was $1.65 B, a 4% reduction from 2015 and 18% lower than the same period in 2014.The number of homes that sold in Saskatoon for November was 243 units representing a 14% reduction compared to November 2015. As of the end of last month there was a cumulative total of 3,489 home sales, this is 7% lower than a year ago. The number of homes listed for sale to the end of November 2016 was 8,897. Currently there are1,687 residential properties available for sale in Saskatoon, only the month of January had less product available with 1,612 units. At the current level of sales it would take nearly seven months to liquidate this inventory.

The average selling price continues to remain virtually unchanged at just over $350,000. Two years ago the average selling price two years ago by comparison was $357,000, at a time when the market was more active. “An increase in sales in the higher end homes has helped to support the average price in the Saskatoon market” states Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. Sales in every price range below $750,000 saw decreases in unit sales however homes priced above that increased year over year. For sales over $1M there were 25 units sold year to date compared to 13 units a year ago. Homes in the price range between $750-800,000 were up 50% year to date over 2015.

The current sales to listing ratio for November was 37% which is firmly a buyers’ market as it has been all year. Homes are currently taking 50 days on average to sell in Saskatoon with sellers realizing 97% of the asking price. “These statistics tell me that sellers who price to the market will realize a sale in much less time than the average of 50 days and close to their asking price. Those who do not price to market are typically responsible for the low sales to listing ratio.” Comments Yochim. “Buyers are more educated than at any other time and typically know where the market is at.

There are positives in this quieter real estate market. The recent selling out of the much awaited River Landing condominium project in less than four days proves that location, location, location is key in any market conditions. This occurred in spite of an oversupplied condominium market with somewhere in the neighborhood of 1,000 multi-family units available for sale.

“The best advice I can give to those who are needing to sell is to get sound pricing, marketing and timing advice from a professionally licensed and trained REALTOR® member of The Saskatoon Region Association of REALTORS®. Real estate is local to specific markets in Saskatoon and every seller’s situation is unique. Impartial and objective advice is critical in a successful sale of residential real estate.” cautions Yochim. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

Home sales in the Saskatoon market last month were up 8% over October of 2015. “This is a very positive change and speaks to consumer confidence in our market,” states Jason Yochim CEO with the Saskatoon Region Association of REALTORS®. Recent changes to lending rules by the federal finance minister were also a contributing factor in activity as buyers scrambled to beat the October 17^th deadline when these changes came into effect. “Regardless of the factors leading to a sale, it is always good to see stronger sales activity.” he adds “every home sale contributes almost $50,000 of additional economic activity in the local economy.”

Strong sales in August and October of this year coupled with an overall decline in new listings has resulted in an 11% reduction in the inventory of active listings in Saskatoon. Active listings peaked at 2,047 units in June of this year and have declined steadily to 1,745 at the end of last month. This will have a positive impact in several areas. It will help maintain the average price as well as start to move the market in the direction of a seller’s market, although we’re not there yet. Total number of sales for Saskatoon year to date were 3,249 compared with 3,457 for the same period last year. The sales-to-listing ratio indicates whether we are in a buyer’s or seller’s market. It is determined by dividing the number of sales by the number of new listings for a period. A 50% ratio is considered balanced. Currently the market is at 42% which is a buyer’s market.

Another positive sign is the days of inventory which determines how long it would take to liquidate the current active listings at the current level of sales. Based on October’s numbers there is currently just over five and a half months of inventory. This is just slightly above the five-year average of five months. The overall dollar volume for the Saskatoon and surrounding market is only down 3% from last year and currently sits at just over $1.5 Billion dollars. Overall dollar volume has remained strong despite a 6% year to date reduction in sales. This is largely due to an increase in sales over $750,000. Year to date there were 51 units sold between $750-800,000 compared to 40 last year. Comparatively, sales were down 10% year to date for homes priced between $250-450,000. “There is no doubt that the recent federal change for homebuyers qualifying for a mortgage will further impact our market with an average price of $350,000” comments Yochim. “It has yet to be seen how much the impact will be.”

The good news for those selling is that sellers are realizing 97% of their asking price. Sellers who choose to list too high over the market are finding it difficult to obtain that sale. The closer the asking price is to market the tighter the offer will be to the list price.

Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.