Saskatoon home seller has one strange pricing strategy

This image is a screenshot taken from the Saskatoon MLS system that displays the price history of a listed property. The home seller is clearly confused. He has adjusted his price 16 times including 9 reductions and 7 increases. That’s right. 7 increases. Oddly, the asking price is still higher than it was the day the home was introduced to the Saskatoon real estate market nearly 5 months ago.

Like almost everything else these days, this MLS history report reminded me of the volatility of stock market. I only wish that my investments were still priced higher than they were five months ago. 🙂

Saskatoon home seller has strange pricing strategy

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate: Week in review (October 20-24 2008)

New listing activity in the Saskatoon real estate market remained soft for the second week in a row with just 95 residential properties being offered for sale including 68 single-family homes and 27 condominiums. A total of 78 properties were cancelled or withdrawn from the market over the course of the week, and 51 of those same homes made another appearance as a new listing. Still, the total inventory of active real estate listings advanced marginally from 1,673 last week to settle at 1,690 including 1,050 houses and 533 condos.

Unit sales of houses and condos also saw a decline falling to just 38 units, down from 45 the previous week. Only three weeks in 2008 saw weaker sales numbers, once in January, once in August and once in September.  Changing mortgage rules are now in effect, and tougher credit criteria along with concerns about the global economy are undoubtedly side lining some prospective buyers. Given all that’s going on right now, and as close as we are to these changing conditions, 38 units will strike some as a fairly remarkable number. Total residential unit sales for the month of October are presently at 169. We should likely hit 200, but we’ll almost certainly fall short of my “just for fun” guess of 225 units that I threw out in last week’s review.

Click here for a larger version of the graph.
Saskatoon real estate sales vs new listings - houses and condos

Over the course of the week 97 price changes were recorded on the local MLS system. The average sale price remained stable compared to last week at $280,071 but the six-week average took a dip towards $295K as one of two “plus one million dollar sales” fell out of the back end. The median price of a Saskatoon home also came in lower falling to $267,900 from $280,000 the previous week.

Click here for a larger version of the graph.
Average and median real estate prices for Saskatoon - Houses and Condos

It’s no big surprise that all but one of this week’s sales were reported as having sold below the asking price. 37 or 38 buyers managed to negotiate a purchase at an average of $12,787 below list price, a number that is more or less typical of what we’ve been seeing over the past two months.

Saskatoon Real Estate: Week in Review (October 20-24, 2008)

See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

U.S. resale housing market posts some hopeful gains

Amidst a backdrop of crumbling credit markets and stock indices desperately looking for the bottom, the U.S. resale housing market showed some promising signs in September as existing home sales rose 5.4% over August and posted their first year-over-year gain in three long years. Nationwide, home sales rose 1.4% in September over the previous year.

The sales jump, which took economists by surprise pushed active listing inventories down by 1.6% and brought the second consecutive month of inventory declines. Still, a near 10-month supply of residential property is available for purchase across the United States.

Home prices continued to post losses and reached their lowest level since April 2004. The median price of a U.S. home fell to $191,600, down nine percent from one year ago.

According to a story in the Globe and Mail, Lawrence Yun, chief economist for the National Association of Realtors (NAR) attributes increased unit sales to a “rise in foreclosure and other ‘distress sales’ in regions of the country hard-hit by the ongoing housing downturn.”

“In some regions, the lower prices are seeing buyers return to the marketplace,” he said. “This was a nice jump, and hopefully this trend can continue because the first step to stabilizing the market is an increase in home sales.”

Read the Globe and Mail story here.
Read NAR’s media release here.
See the current U.S. real estate stats here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon Real Estate: Week in Review (October 13-17 2008)

Before we get started with last week’s real estate activity I want to point out a couple of changes that I’ve introduced to the “Week in Review” which you can expect to see on an ongoing basis. First, I’ve added the median selling price for each of the five areas to the graphic that you’re accustomed to seeing each week. A number of people have requested that this information be added. Secondly, at Bookrat’s request I’m adding a graph that plots the weekly average selling price in comparison to the six-week average selling price. Bookrat has been tracking these stats himself and was kind enough to send me an image of his graph. I had to agree that it adds some interesting detail and helps make better sense of the weekly numbers. Thanks for your help Bookrat! Finally, you’ll notice another graph, which plots weekly unit sales against new listings for the week. As always, please remember that most of my stats are based on single-family homes and condos unless otherwise specified. I hope you like these additions. Now, let’s take a look at what happened in the Saskatoon real estate market over the past week.

New listings took a serious nosedive coming in at their lowest levels since the week of January 28 – February 1. A total of 96 properties were offered for sale on the multiple listing service including 76 single-family homes and 20 condominiums. Total active residential listings fell to 1,673 units to find their lowest level since the week of August 18-22. A total of 49 listings were cancelled or withdrawn and 29 of those properties found their way back to the system as new listings. 89 price adjustments were approved over the course of the week. Today’s active listing inventory consists of 1,045 houses and 529 condos. The “units sold vs. units listed” graph indicates that there has been some narrowing of the massive gap that developed between the two through the spring.

Click the image for a larger version of the graph.
Saskatoon residential unit sales vs new listings

Unit sales fell to 45 units from 49 the week before. 42 buyers managed to negotiate a contract below the asking price to the tune of $12,502 on average. The average selling price was down from previous weeks, reaching its lowest level since the week of August 25-29 to settle at $280,096. The average selling price of a Saskatoon home was fairly consistent with the median price, which came in at $280,000 for the week.

Saskatoon real estate week in review October 13-17 2008

Click the image for a larger version of the graph.

Saskatoon real estate weekly average price vs 6 week average

See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate: Week in review (October 6-10 2008)

New listing activity in the Saskatoon real estate market picked up considerably this week as 161 new listings were placed on the agent MLS including 105 single-family homes and 46 condominiums. Additionally, 47 of 84 cancelled listings found their way back to the MLS as new listings. I suspect that some of the homes that moved out of the system as “expired listings” at the end of September made a comeback as new listings this week. Still, the total inventory of active listings saw fairly modest growth of 8 units over the previous week, to finish at 1,688 including 1,049 single-family homes and 534 condos.

In addition to the 47 re-lists, most of which returned sporting a new price, 156 Saskatoon home sellers approved a change to their pricing strategy in hopes of luring a willing buyer. The average asking price of all active listings is still a whopping $329,769, some 10-15% higher than average selling prices over the past few months.

A total of 53 residential properties were reported as firm sales, including 49 in the single-family homes and condo category. 45 of 49 sold for less than the asking price while four sellers managed to attract offers at, or above their list price. The average of three overbid sales came in high at $20,533 with the largest of the three boasting a sale price that was $55,000 over asking. This is a new townhouse property so I suspect that the buyer likely negotiated some additional improvements that led to the higher selling price. Those buyers, who managed to negotiate a discount, purchased their new home at an average of $12,376 below the asking price.

Average list and sale prices of the properties that did sell declined again for the third week in a row in spite of yet another residential sale that topped the one million dollar mark. The entire history of the Saskatoon MLS shows 6 sales within city limits that managed a selling price above one million dollars. Five of those occurred this year; three of them were reported after September 15.

The “Saskatoon real estate: week in review” is intended to provide a brief overview of the most recent market activity. Due to the small samples, average prices can vary significantly from one week to the next. For more reliable price trend information, see our most recent “Closer Look at the Saskatoon Real Estate Statistics” published on October 10.
Saskatoon Real Estate: Week in Review (October 6-10, 2008)

See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate