Saskatoon returns to more normal stable market environment: SRAR

The average selling price of a residential property in Saskatoon slid for the second consecutive month to land at $279,366 down from its peak of $310,386 in June of this year.

Here is the news release issued by the Saskatoon Region Association of Realtors yesterday.

Saskatoon REALTORS® listed 805 properties in the Month of August that number up 17% from August 2007 when 686 properties were placed on the market. Year to date 5,947 homes have been placed on the market for sale that number up 41% from August 2007 year to date numbers.

Unit sales were down 44% from August 2007’s frenzied market with 224 residential units selling as compared to 397 homes being sold in August 2007. Unit sales numbers are more on par with 2003 to 2005 sales numbers indicating a return to a more normal stable market environment.

The average residential selling price in August was $ 279,366.00 up 11% from August 2007 when the average selling price was $252,268.00. Year to date the average price is holding its own at $288,918.00 that number up 28% from August 2007. Year to date REALTORS® have sold $786,725,000.00 of residential real estate 4% ahead of August 2007 when $753,279,000.00 of real estate was purchased.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comprehensive market evaluation.

Similar market activity was experienced in those areas in and around Saskatoon. Inventory levels increased with 331 homes being listed for sale up 66% from August 2007 when 199 homes were placed on the market for sale. The average selling price remained stable at $242,864.00 up 24% from August 2007 when the average selling price was $195,490.00.

Unit sales in areas around Saskatoon were down by 13% with 81 properties selling as compared to 93 in August 2007. Year to date 690 homes have sold that number down 13% from 2007.

Increased inventory levels are common place across Canada. Saskatoon continues to experience strong employment numbers with many corporations and companies seeking to hire skilled labour all of which require housing. Market activity is expected to remain the same in the coming months as the market goes through a correction.

The Star Phoenix story related to this release is here.

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Norm Fisher
Royal LePage Saskatoon Real Estate