The number of active residential listings in the Saskatoon market exceeded the five year average by nearly 40% at the mid-point of the year, and 32% higher than a year ago. There are currently 2,081 active listings in a market that absorbs 340 home sales a month on average for 2015. At that rate it would take over 6 months to clear out all available property. As inventory levels continue to rise against a decrease in sales, I would expect prices to flatten and even decrease for some markets in Saskatoon. Most of us would like to see our home values continue to rise however that is not realistic. All markets go through periods of growth and correction. In spite of the probability of a decrease in the average price, some homes are still selling quickly and for full price or more in many cases. It is simply a function of proper pricing to current market conditions. If you have to sell, it is highly advisable to obtain credible advice on how the current market is affecting your home specifically.
In spite of higher levels of homes for sale the average price has changed very little. This is likely due to a spike in sales between $900,000 and 1,000,000 in 2015 with seven sales versus two, year to date in 2014. Also June over June sales of homes priced between $700,000 and $750,000 increased from two sales last year to seven. This underscores the concern with gauging the market based on the average price. An increase in sales within a certain price range can skew the average for a measured period of time. The best indication of future trends in housing prices is the Home Price Index (HPI). Like the Consumer Price Index, it measures the relative change in home values over a period of time. This is a more accurate measure of value than the average price as the average can be skewed by a change in the number of sales in any specific price range. The HPI price for single family homes was $329,500 at the end of June, virtually unchanged from a year ago. The single family home value has slowly risen from $325,000 in January which was an 18 month low.
Overall the total number of homes that changed hands was 2,044 year to date which is a 14% decrease from a year ago. However, the five year average for home sales is only two percent higher than this. By the mid-point in 2013 the total transactional dollar volume for the Saskatoon Region Association of REALTORS® exceeded $1.1 Billion for the first time. So far this year it is slightly down at $960 Million which equals that of 2013.
Source: SRAR July 3rd, 2015 Media Release