Inventory Continues to Grow in 2014
In the first quarter of 2014, 1,240 MLS transactions occurred in the Saskatoon and region marketplace for a volume of $423M, up 16% year over year. Listing activity is also up 19% over last year with just over 3,000 new listings added to the market. Sales activity has also been solid with a 10% increase year over year. Consumer confidence remains strong across the board in all price ranges. Homes in the $500-750,000 range experienced the greatest change in sales from 78 units in 2013 to 118 units at the end of March representing a 51% increase year over year. The inventory of new homes seems to be moving again which often brings entry level homes to the market as families move up to their second home.
Currently the 1,349 homes on the MLS in Saskatoon represent 4.09 months of inventory in the lowest level since October of 2013 which had an inventory of 3.89 months. In terms of numbers, Area 1, which includes several new neighborhoods, had 154 sales in March and an existing inventory of 721 properties. Comparatively, Area 4, which includes many of the core neighborhoods and mostly existing property sales saw 47 properties change hands on MLS and currently has an inventory of 142 properties. These numbers indicate that home owners and developers in certain neighborhoods have to be patient in waiting for a sale or consider adjusting their asking prices for a quicker sale, as price and time to sell are inversely related.
The benchmark value for a typical single family home in Saskatoon continued its upward trend to a value of $326,000. This value does not represent the average or median price but rather is a comparative value of single family homes that is comparable to markets across Canada. Comparatively the cities of Regina, Calgary, Toronto and Greater Vancouver had benchmark values of $314,100, $472,800, $574,000 and $945,700 respectively for comparable properties. Homes are still very affordable in Saskatoon in light of this comparison.
Source: SRAR April 3rd, 2014 media release.