The number of properties available on the Multiple Listing Service ® at the end of July stood at 1,615 for Saskatoon. This was partly due to 932 additional properties listed for sale in July, an increase of 19% over last July as well as a reduction in sales of 9% compared to July of 2013, with 420 units changing hands. In 2008, inventory levels spiked in response to a leveling off in the market after the dramatic market activity of 2006/07. We don’t appear to be in a situation where the market is experiencing a correction but rather it seems the long awaited summer weather has buyers opting for vacations instead of house hunting.
An increase in newly listed properties combined with a slowdown in sales resulted in the months of inventory increasing to 3.85 from just less than 3 months in June. The months of inventory is determined by dividing the number of active listings by the number of sales and gives a sense of how long it may take a property to sell. Typically the higher the price range the greater the increase in the months of inventory.
The average price year to date was up 3% to $356,800 supported partly by an increase in homes selling at the higher end of the market. Home sales between $500,000 and $750,000 were up 40% compared to last July while a total of 9 sales between $750,000 and $1M was almost double that of July 2013. Year to date, homes selling between half a million and a million were up 29% over the same period last year while there have been a total of 2,801 sales in the Saskatoon market, an increase of 7% over last year.
Sales activity was also quieter in the market outside of Saskatoon down 2% compared to last July. Year to date the number of sales in the rural and surrounding communities stood at 838 units, an increase of 15%. The number of new properties listed for sale also increased by 15% to 2,128 year to date.
According to the Home Price Index, the Benchmark value for a typical single family home in Saskatoon was $329,700 while the index was at 233.6, continuing a steady upward trend in values since December. In October of 2013, the index showed a slight downward trend through to the end of the year. The Home Price Index reflects the change in value for a typical single family home over time similar to the Consumer Price Index.