Canadian home sales edge up again in October 2017: CREA

The Canadian Real Estate Association (CREA), released national sales statistics for the month of October 2017 this week. According to the CREA, “National home sales posted a modest monthly increase in October but remain below levels recorded one year ago.

Home sales via Canadian MLS® Systems edged up 0.9% in October 2017 on the heels of monthly increases in August and September, but remained almost 11% below the record set in March.

Highlights of CREA’s report

  • National home sales rose 0.9% from September to October.
  • Actual (not seasonally adjusted) activity stood 4.3% below last October’s level.
  • The number of newly listed homes edged back by 0.8% from September to October.
  • The MLS® Home Price Index (HPI) was up 9.7% year-over-year (y-o-y) in October 2017.
  • The national average sale price climbed by 5% y-o-y in October.

Read the entire report on Canadian MLS® sales for October, 2017.

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.

Norm Fisher

Royal LePage Vidorra

High inventory, softer demand and weaker prices provide ideal conditions for buyers in October 2017: SRAR

I apologize for the delay in posting the October 2017 MLS® sales and listing stats for Saskatoon. The House Price Index (HPI) numbers needed some work following an August upgrade to the MLS® system and I was not comfortable moving forward before that was completed.

A media release from the Saskatoon Region Association of REALTORS® with an overview of residential MLS® sales and listing activity for the month of October 2017 follows. I have edited the original release for grammar, and to include the updated HPI numbers to the corrected stats, which show a year-over-year decline, as opposed to an increase that was originally reported with this release.

Conditions remain ideal for those in search of a home in Saskatoon with 1,967 city listings on the market at the end of October, plus an additional 1,022 residential properties in the regions outside of Saskatoon. This is an increase of almost 12 percent compared to the same time last year. With upcoming mortgage rule changes being introduced in the new year, relatively low interest rates and more available homes, this is an ideal time for buyers to tie up that purchase. 

The sales-to-listing ratio for Saskatoon was just over 40 percent in October. This means that for every ten homes listed for sale, four were successfully sold. The number of Saskatoon sales for October was 287 units. Although this was an eight percent decline compared to October 2016, it represented an increase of ten percent over September’s sales of 262. Year-to-date, by the close of October sales for Saskatoon were at 3,030 units, a 6.7 percent decrease from the same period last year. A total of 8,069 homes have been placed on the market this year in Saskatoon, down slightly from 8,217 by this time last year. 

“I expect that there may be a slight spike in sales as the year winds down,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “This would be due to recently introduced mortgage qualification rules for conventional buyers plus some recent upward pressure on interest rates.” The federal government continues to address issues with overheated markets in Canada’s two largest cities. These rule changes, however, affect local real estate markets much differently. 

The average days on market for a home in Saskatoon was 54, which is unchanged from September and slightly higher compared to October of 2016 when it took 50 days. Not surprising, with higher inventory levels and declines in sales the average selling price for a home in Saskatoon continues to fall, with a year-over-year decline of 3.2 percent. It is now at $331,889. The median price, however, remained unchanged at $330,000. The MLS® Composite Home Price Index (HPI) Benchmark Price fell by just over four percent annually to $299,900. The Composite HPI measures the rate of change in a benchmark price for a typical home and is the most accurate indicator of pricing direction in a market.

For further information, please contact:

Jason Yochim CAE, CRAE
Chief Executive Officer
Saskatoon Region Association of REALTORS®

Saskatoon home sales fall significantly in September 2017: SRAR

I apologize for the delay in posting the September MLS® sales and listing stats for Saskatoon. The House Price Index (HPI) numbers needed some work following an August upgrade to the MLS® system and I was not comfortable moving forward before that was completed.

A media release from the Saskatoon Region Association of REALTORS® with an overview of residential MLS® sales and listing activity for the month of September 2017 follows. I have edited the original release for grammar, and to include the updated HPI numbers to the corrected stats, which show a year-over-year decline, as opposed to an increase that was originally reported with this release. Please do note that I have also already added the October 2017 stats to the charts.

The Saskatoon real estate market saw a 19 percent decline in MLS® home sales in September compared to the same month a year ago. MLS® sale for September of 2016 totaled 324, compared to just 262 in 2017. Year-to-date, there have been 2,745 MLS® sales within the city of Saskatoon, an annual drop of six percent from 2016 when 2,935 homes had traded by this time. Overall, the number of sale transactions recorded by the association in Saskatoon and surrounding areas was 3,701 at the end of September compared to 3,957 by the same date in 2016. This marks a ten percent decline in dollar volume, a drop of roughly $140 million dollars.

The number of properties for sale declined by around 100 units from August to September with a total of 2,082 now on the market. The five year average for active listings is 1,797 units.

“Ideally it would be nice to see the number of active listings around that five-year average or lower,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “That level would bring us closer to balanced market conditions.” By comparison, in 2007 when the market was a strong seller’s market with escalating home prices, there was an average of just over 400 active listings through the year. Ten years later that average is just under 2000 active listings.

The average length of time for a home to sell is 55 days, just slightly above the September five year average, which is 46 days. The sales-to-listing ratio is a comparison of the number of sales for the month relative to the number of new listings taken. It is considered to be a balanced market when this ratio falls between 40-60 percent. A number above this range is considered a seller’s market while a one below is seen as a buyer’s market. The sales-to-listing ratio for September was 34 percent, well below the five year average of 42 percent. “In a buyer’s market with elevated inventory levels it is critical to understand pricing and to properly prepare your home to compete against other homes in your price range,” cautions Yochim. 

This year, the average selling price of a Saskatoon home fell by 1.4 percent to $347,043. The median price also declined slightly by 2.1 percent to $327,900. In July of this year, the Saskatoon Region Association of REALTORS® elected to remove lot sales from the aggregate number of home sales to give a more accurate picture of pricing, however, in the short-term this change has propped up the average price to some degree in comparison to last year. The MLS® Composite Home Price Index (HPI) Benchmark Price fell lower to $301,800, down 4.3 percent from a year ago when it was $315,400. The Composite HPI measures the rate of change in a benchmark price for a typical home and is the most accurate indicator of pricing direction in a market. 

For further information, please contact:

Jason Yochim CAE, CRAE
Chief Executive Officer
Saskatoon Region Association of REALTORS®

Saskatoon real estate buyers have “opportune market”: SRAR

A media release from the Saskatoon Region Association of REALTORS® with an overview of residential MLS® sales and listing activity for the month of August 2017 follows.

With a slight decline in year-over-year home sales, low-interest rates, stable home prices and elevated inventory levels, Saskatoon continues to be an ideal market for home buyers. At the end of August, there were 2,183 active listings in Saskatoon, just slightly down from the record set last month.

“In the coming months, home buyers will look back with hindsight and realize how opportune the market was with all of these elements in place,” according to Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “It is only a matter of time before the market shifts as it always does.” “The concern is that buyers waiting for the bottom of the market in order to make a purchase may end up paying more when buying on the upswing,” adds Yochim. 

The average home is taking approximately 55 days to sell which is the greatest number of days in the past several years. The five-year average days to sell in August is 46. Homes that have been priced relative to this market will see a sale in much less time. The sales to listing ratio compares the number of new listings against the number of sales for the month. In August, the sales to listing ratio was 41 percent, which is consistent with the past three months. For every five homes listed, there are two sales. The year-to-date sales to listing ratio was 37.7 percent, down 3.5 percent compared to 2016. Based on the current level of home sales, it would take between six and seven months to clear out the active listings. This is above the five-year average of just over five months. 

Two-thirds the way through the year, Saskatoon and area saw a total of 3,344 transactions, down five percent from last year. The total number of homes listed for sale, this year was 9,904 which is virtually unchanged from 2016. The total dollar volume for Saskatoon and region year-to-date was $1,139 billion, down nine percent from the same period last year. Within the Saskatoon market, the number of transactions so far this year was 2,484 at the close of August, a five percent decline from the same period last year. 

With lots to choose from the average and median price continued to show signs of slipping. The average price year-to-date declined by one percent to $347,414 while the median price declined by 1.5 percent to $329,950. Considering the challenging economy, high supply of housing and a softened demand, pricing has not been dramatically impacted so far. “Pricing of a home is one of the most important decisions in a successful sale,” comments Yochim. “REALTORS® are the most informed when it comes to knowing the market for a specific property at a specific time,” he adds.

Jason Yochim CAE, CRAE
Chief Executive Officer 
Saskatoon Region Association of REALTORS®

Saskatoon homes sales well down in July, 2017: SRAR

A media release from the Saskatoon Region Association of REALTORS® with an overview of residential MLS® sales and listing activity for the month of July, 2017 follows.

The warm weather in July appears to have taken some purchasers out of the Saskatoon market with a monthly decline in unit home sales of 16 percent compared to July of 2016. Year-to-date, unit sales are down nearly four percent for Saskatoon compared to the first seven months of last year. Sales in the region surrounding Saskatoon increased just over 17 percent for the month compared to last July, while the year-to-date numbers declined slightly by 2.6 percent. So far this year, there has been a total of 2,155 unit sales within Saskatoon and another 596 in the region surrounding the city. The total dollar volume recorded for Saskatoon and region this year is $989 million off five percent from last year.

The number of active listings in Saskatoon has reached a new peak at 2,210 with an additional 1,125 properties available in the market outside Saskatoon. At the current rate of monthly sales, it would take just over seven months to liquidate the current inventory completely. The average home is taking approximately 50 days to sell which is consistent with the past two Julys. The homes that are selling are seeing a sale price that is at 96.7 percent of the asking price. “These stats would indicate to me that those who are serious about selling are pricing to market and getting very close to their asking price and in much less time than the current 50-day average,” according to Jason Yochim CEO with the Saskatoon Region Association of REALTORS®. 

The number of listings taken this year in the Saskatoon and region market is consistent with last year at 8,693. In Saskatoon, there have been 5,795 properties listed since January 1, very similar to numbers for the past two years.

Prices continue to show signs of slight decline as well. The average sale price in July of 2017 was 6.4 percent lower than it was in July of 2016. Year-to-date, the average price has slipped from $351,855 to $348,960. The median price for the year has also decreased slightly from $335,000 to $329,500. The Composite Home Price Index (HPI) benchmark price for July declined by 2.2 percent compared to last July. The HPI is considered to be the best indicator of the trend in home prices and measures the rate of change month-over-month. “Based on the theory of supply and demand it is reasonable to expect that prices are not likely to strengthen until the number of active listings declines,” comments Yochim. “It is important to remember that these changes in pricing are an aggregate of the entire market and will vary based on area, type of home and availability of similar properties to the subject. Access to this information is critical to accurate pricing and can be obtained through consultation with one of our members.”

Jason Yochim CAE, CRAE , Chief Executive Officer 

Saskatoon Region Association of REALTORS®