At the end of August there were 1,595 properties available in the Saskatoon real estate market. This represents an increase of 16% year over year in inventory levels and is nearly 11% higher than the five year average. The number of homes that have been listed for sale in Saskatoon in 2014 reached 9,734, a 13% increase over 2013. Strong sales, which were up 8% for the same period, helped keep the sales-to-listing ratio at just over 50% remaining in a balanced market. Depending on what price range a specific property is in, the sales to listing ratio will vary. Currently the west side of Saskatoon enjoys a slightly stronger sellers' market than the east side and north end. The months of inventory, which reflects the time needed to liquidate the current inventory of listed homes, is up slightly to just over 4 months as the increase in properties for sale continues to outpace the increase in sales across Saskatoon.
The activity in homes priced between $500,000 and 750,000 continues to do well with 332 unit sales, an increase of 35% over last year. Not surprisingly, the price range with the most unit sales year to date is between $350,000 and 400,000 with 551 units, a 16% increase from 2013. Saskatoon's transaction volume for 2014 sits at just under $1.5 billion, an increase of 11% over last year and on track to reach $2 billion by years end. It is encouraging to see strong activity across the board in the Saskatoon market, especially over the summer months when real estate activity typically slows. In spite of our strong market we continue to see a modest 3% increase in the average sale price. The average price of a new home in Saskatoon currently sits at $353,000.
Currently there are just over 330 newly constructed homes available on the Multiple Listing Service® for Saskatoon. According to reporting by Canada Mortgage and Housing, single family detached housing starts are on pace with last year while multi-family unit starts are almost double those of 2013 halfway through the year. Competitive pricing and continued low interest rates are resulting in more absorption in the new home market.
With higher inventory levels it is important to seek the opinion of a professional REALTOR ® to ensure that a property is not only priced competitively but to be sure that the homeowner is receiving fair value for their home. Also a REALTOR® can assist a buyer in selecting the right property at the right price for their particular needs.
Summarized from SRAR September 2nd, 2014 media release