Canadian home sales see “first meaningful rise” since new mortgage stress testing began: CREA

The Canadian Real Estate Association (CREA), released national sales statistics for June of 2018 today.

According to the report, “National home sales via Canadian MLS® Systems rose 4.1% in June 2018 compared to May. While this marks the first substantive month-over-month increase this year, sales remain well down from monthly levels recorded over the past five years.”

“This year’s new stress-test on mortgage applicants has been weighing on homes sales activity; however, the increase in June suggests its impact may be starting to lift,” said CREA President Barb Sukkau. “The extent to which the stress-test continues to sideline home buyers varies by housing market and price range. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to in the future,” said Sukkau.

Highlights of CREA’s report

  • National home sales rose 4.1% from May to June.
  • Actual (not seasonally adjusted) activity was down 10.7% from June 2017.
  • The number of newly listed homes eased 1.8% from May to June.
  • The MLS® Home Price Index (HPI) in June was up 0.9% year-over-year (y-o-y).
  • The national average sale price edged down 1.3% y-o-y in June.

Read the entire report on Canadian MLS® sales for June of 2018.

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

Saskatoon real estate week in review for July 15-21, 2018

It was another solid week for Saskatoon real estate sales as the number of homes that traded exceeded that of the same period last year for the third consecutive week. This three-week winning streak is the longest run of annual gains that we’ve seen in 2018. After some significant decreases over the past couple of months, it appears that July will record some annual sales increases.

A total of 92 Saskatoon home sellers saw a sold sign go up this week. That’s modestly higher than the 88 sales recorded the week before, and a gain of 22 firm deals when compared against numbers for the same week last year.

New listing activity saw a modest uptick as 176 homes entered the MLS® system, up nine from the previous week, and well up from the 146 Saskatoon homes listed for sale over the same period a year earlier.

The MLS® inventory of active residential real estate listings failed to make any gains this week but saw no declines either. It closed the week with a total of 2070 homes for sale within the city of Saskatoon, precisely where it sat a week earlier, and significantly below the 2225 homes that were for sale at this time in 2017. It seems fairly likely to me that our inventory peak occurred in late June when the number of listings reached 2131. A closer look at the major categories shows that we have 821 active condominium listings today, about a dozen fewer than were available a year ago. In the single-family homes category, there are 1124 properties showing an active status, down from 1255 a year earlier.

A strong showing of Saskatoon home buyers who purchased above the $400,000 mark brought the median price of a Saskatoon home higher this week to $340,000 even as the average price for the period saw a small decline to $340,661. The six-week average price took a modest decline as it slipped about thirteen hundred dollars from last week to $333,529 and found itself down by about 15K on an annual basis. The four-week median price headed for higher ground and grew by five thousand dollars from last week to reach $325,000 which is exactly where it was at the close of the same week last year.

Once again, two fortunate sellers had buyers bidding more than their asking price, one paying a big bonus of $37,500. Meanwhile, 80 deals closed below the seller’s asking price netting buyers an average discount of $12,985.

Here is a breakdown of what the sales to listing price ratio looked like on this week’s sales. Please note that those sales that do show a sale price that is greater than the list price are all new properties that spent some period of time on the market, and most likely included additional improvements that were not reflected in the original list price. We report these to you as “at list price sales”, which is likely too generous in some cases, but it’s simply not practical to obtain the full details of each sale.

More weekly stats and numbers for those who love them.

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

Saskatoon real estate week in review for July 8-14, 2018

For the second week in a row, the Saskatoon real estate market recorded a higher level of residential sales than we experienced over the same weeks last year. Local agents reported a total of 88 Saskatoon homes having sold through the MLS®, up from 81 last week and topping sales for the same period in 2017 by 10.

Meanwhile, new listing activity slid lower for the fifth consecutive week. A total of 167 residential listings hit the multiple listing service® in Saskatoon, down just six from the week before, and 61 fewer homes than hit the system over the same period last year.

In spite of strong sales and weaker new listing activity, MLS® inventory continued to push higher making marginal weekly gains. As of this morning, there were 2070 Saskatoon homes offered for sale on the MLS®, up just 14 from the week before, and down from 2228 a year earlier. History would suggest that we have passed our active listing peak for 2018. In two of the three previous years, the inventory remained stubbornly high for a couple of more months but it really didn’t grow after we hit mid-July. The spring market is soon to be in the rearview mirror. A closer look at housing categories shows 827 Saskatoon condos for sale, up from 815 a year ago, and 1119 single-family homes, down from 1212 at this time last year.

Both the median and average sale prices for the week remained stable compared to last week. They came in at $318,750 and $344,890 respectively. The four-week median price was unchanged on a weekly basis as it came in at $320,000 for an annual decline of five thousand dollars. The six-week average price of a Saskatoon home took an upward bounce to grow by more than 12K compared to last week as it reached $334,539 for an annual decline of about eighteen thousand dollars.

This week’s sales included seven full price sales and two overbids. One deal closed at $25,100 more than the asking price driving the average overbid to $13,850. The remaining 79 sales went for less than the seller’s asking price and netted those buyers an average discount of $11,745.

Here is a breakdown of what the sales to listing price ratio looked like on this week’s sales. Please note that those sales that do show a sale price that is greater than the list price are all new properties that spent some period of time on the market, and most likely included additional improvements that were not reflected in the original list price. We report these to you as “at list price sales”, which is likely too generous in some cases, but it’s simply not practical to obtain the full details of each sale.

More weekly stats and numbers for those who love them.

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

Dollar Volume of Saskatoon Home Sales Continues to Decline Through June 2018

At the mid-point of the year, the total dollar volume for residential MLS® sales in Saskatoon sits at $565,435,958. This is down 12 percent from last year and is the lowest dollar volume of sales for any June in the past ten years. “This is a reflection of a decrease in unit sales volume coupled with lower prices,” according to Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. Last month there were 350 MLS® home sales, an 11 percent decline from last June and the lowest number of homes sold for the month of June in 10 years. Year-to-date, 1,693 Saskatoon homes have sold through the MLS®, down eight percent from this time last year.

Year-to-date, the average sale price was $333,985, down five percent from the same period last year. The highest average residential sale price for June was in 2015 at $361,719. 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 HPI value is a better indicator of the market.

The median sale price of a Saskatoon home (all residential categories) was $316,500 in June, its lowest point this year, and down from $330,000 in January. The Home Price Index (HPI) Value for Saskatoon single-family homes continued its slow but steady increase from February when it was $308,900 and climbing to $315,800 at the end of June. The HPI Value for single-family residential reached its highest level in May of 2015 at $331,800. The HPI value for apartments has been on a steady decline since January but appears to have leveled out at $179,100. HPI value for townhouse style residences has been trending up sharply since March and was at $231,600. The HPI measures the change in value over time for a typical home with a standard set of attributes. This index works similarly to the Consumer Price Index and is the most accurate indicator of home pricing.

Inventory levels continue to be elevated with 2,109 residential properties available on the MLS® in Saskatoon at the end of June. This is just slightly above the five-year average for active listings which is 1,990. The sales to listing ratio remained virtually unchanged from a year ago at 40%. The sale-to-listing ratio is a comparison of the number of sales for a period of time to the number of new listings. This number shows that four out of every ten homes that hit the market end up selling. In reality, this percentage is likely higher as many homeowners that do not sell will cancel their current listing and re-list, often at a different price. This elevates the true number of listings relative to sales. Last month, it took 47 days on average to sell a Saskatoon home, unchanged from May of this year.

Jason Yochim
CEO of the Saskatoon Region Association of REALTORS®

Saskatoon real estate week in review for July 1-7, 2018

The Saskatoon real estate market experienced a small downturn in sales on a weekly basis, even while sales numbers grew compared to the same week last year. Local agents reported 81 firm residential sales to the Saskatoon MLS®, down five from the previous week, but up by 11 from the same period of 2017.

The number of new listings added to the multiple listing service® was lower for the week, and year-over-year. By the close of the week, agents had brought an additional 173 Saskatoon homes to the MLS, down just three from last week, but well below the 200 that came on a year earlier.

The inventory of active MLS® listings fell lower as over 100 active listings met the end of their term without a sale when June came to a close. As of this morning, there were 2056 residential properties for sale on the MLS®, down from 2131 last week, and lower than it was at this time last year by 113 Saskatoon homes. Condo inventory bucked the trend as the selection grew to 816, up from 800 a year earlier. Single-family homes for sale slipped to 1116 from 1212 at the close of the same week last year.

The median sale price for the week saw modest gains from last week and reached $317,500 while the weekly average grew nearly 15K and reached $340,416. Still, a strong average this week was not enough to keep the six-week average price of a Saskatoon home from slipping to a new annual low. It slid lower by about 13K from last week to close down nearly thirty thousand dollars from levels seen at this time last year. The four-week median price also fell lower losing 5K from last week, for a more modest annual decline of nine thousand dollars.

Sellers looking to create a bidding war that might drive their contract price higher than their list were left wanting. On the other hand, 73 buyers took their seller’s price lower with an average discount of $11,210.

Here is a breakdown of what the sales to listing price ratio looked like on this week’s sales. Please note that those sales that do show a sale price that is greater than the list price are all new properties that spent some period of time on the market, and most likely included additional improvements that were not reflected in the original list price. We report these to you as “at list price sales”, which is likely too generous in some cases, but it’s simply not practical to obtain the full details of each sale.

More weekly stats and numbers for those who love them.

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