For the second year in a row the gross dollar volume for home sales exceeded $1 Billion by the end of summer. At this rate the Saskatoon Region Association of REALTORS is on track to break the $2 Billion mark by years end. The number of units sold year to date was down by 2% in 2013 however an increase in the average selling price of 4% boosted the yearly volume by $25 million over the same period last year. Listing activity is up 8% over last year thanks in part to 1,125 new properties added to the market last month versus 936 in August of 2012. There are currently 3,118 properties for sale in the Saskatoon region and 1,373 within Saskatoon.
The average sale price in Saskatoon was up 4% from last year at this time to just under $345,000. We are actually in balanced territory with 54% of listed properties selling. With the number of new listings up almost 10% over last year and the number of sales unchanged, we can expect this balanced market to continue for the foreseeable future. A steady supply of new listings will help to ensure that our demand does not put a sharp upward pressure on pricing.
Home sales between $300,000 and $500,000 continue to increase at the greatest rate, accounting for approximately one half of all sales. The sales between $450,000 and $500,000 increased 30% over the first 2/3 of the year.
In recent years there has been a growing interest in farmland in Saskatchewan which has driven prices to unprecedented levels however activity is down this year with farmland transactions at 55% of what they were a year ago. The dollar volume for farmland so far this year is at $14.5 million compared to 24 million in 2012. Hard to say what caused the sharp decrease however it could be due to prices reaching levels that no longer make sense to the investor.