The month of July saw an increase of over 25 percent in Multiple Listing Service® (MLS®) sales activity, year-over-year (Norm’s note: that is the largest year-over-year increase for any month in the past five years). In July, a total of 390 Saskatoon homes were sold, up from 310 transactions in the same month of 2017. Year-to-date, MLS® transactions for Saskatoon were down 3.3 percent with 2,082 home sales compared to 2,152 to the end of July 2017. “Although one month does not constitute a trend, it is very encouraging to see such a significant increase in activity during a month when many buyers typically leave town on vacation,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®.
MLS® sales below $200,000 totaled 57 in July, 55 percent higher than in July of 2017. Year-to-date, sales in the same price range increased by 26 percent to 307 transactions. Homes that sold for between $300,000 and $400,000 showed an increase of 27 percent over the previous July. The number of sales year-to-date in this price range totaled 1,229 for a decline of five percent compared to sales by this time in 2017. Home sales at prices that exceeded $400,000 totaled 540 so far this year, a decline of 12 percent over the previous year.
Another positive indicator is a decline in the number of new MLS® listings coming on to the market. A total of 710 new MLS® listings were added to the system in July, a decrease of ten percent over the same period of last year, and well below the five-year average of 830 listings. Fewer new listings combined with an increase in sales reduced the number of active listings from 2,109 in June to 2,048 at the end of July. The five-year average for active MLS® listings at this time of year is 1,977 units. “Lower inventory levels will help move the market from a buyer’s market towards balance and stabilize home prices,” adds Yochim.
Year-to-date, the average sale price of a residential property in Saskatoon was $334,676, down 4.1 percent from the same period last year.
Average prices can be misleading as outlier sales can skew the average sale value one way or the other over a short period of time. This is why the median price of Home Price Index (HPI) benchmark value is a better indicator of the market. The HPI measures the change in value over time for a typical single family home with a standard set of attributes. This rate of change reports similar to the Consumer Price Index and is the most accurate indicator of home pricing.
The (HPI) benchmark value for Saskatoon single-family homes saw a slight decrease to $315,400 compared to $315,800 at the end of June (Norm’s note: a 1.3 percent annual decline).
The HPI benchmark value for townhouse style properties continued on an upward trend, increasing by 1.2 percent for the month to $234,400 (Norm’s note: down 6.4 percent, year-over-year).
Last month, Saskatoon homes took an average of 49 days to sell. The five-year average days to sell during July is 48.
For more information contact:
CEO of the Saskatoon Region Association of REALTORS®