Michael Kinar

Mobile (306) 229-6743

Email: michael@expertadvisorrealty.com

Thinking of Selling

Thinking of Buying

Home Search

 
Blogs
Posts By Date
Back to Blog

Market Value Adjusts in November


There are a few interesting trends to note as we close out 2013. Overall year-to-date there is an increase in the number of homes selling over $350,000 however in the past two months there has been a reduction in the number of homes sold in this range compared to last November. The median sales price over $400,000 has actually decreased over the past couple of months as we see more inventories, especially in new construction. Also, the spread between list and sell price tends to widen as you move up in prices. The sales to listing ratio, which compares the number of units listed to those sold for the period, is higher in the lower price ranges versus the higher end. This is again due to fewer inventories in the lower price range.

 

The number of new listings for 2013 is up 10% over last year however many of these listings are previously listed properties that failed to sell as a result of being overpriced and have been relisted at a reduced price in order to bring them closer to market. Further evidence to support this is a 2% increase in unit sales compared to 2012. The average selling price for the year is up 4% over last year which contributes to the overall sales volume pushing closer to 1.5 billion in Saskatoon.

 

Overall the market continues to be healthy with a strong demand for homes in the $300,000 to $500,000 price range. The surplus of inventory over $500,000 is due to a couple of factors such as unrealistic expectations when pricing as well as over 200 new home builders with product on the market. This does not mean that the "bubble has burst" and the market is falling headlong into a buyers' market, but rather a subtle reminder that although we are in growth mode, the growth and price increases have limitations.

 

The market will always determine the true value of homes through supply and demand and eventually the pricing must follow suit. This is just a gentle reminder to sellers that regardless of what they feel their home is worth, they have to respond to what the buyer is telling them and price to market.


Summarized from SRAR December 2nd news release. 

Comments

No comments

Post Your Comment: