Saskatoon home prices show annual declines in January 2019: SRAR

Average Saskatoon home sale prices were down 12 percent year-over-year in January to $302,412. By comparison, the average price in January of 2017 and 2018 was $341,260 and $344,720 respectively. The challenge with averages is that the numbers can be skewed in a given period and are therefore not a reliable reflection of pricing. For this reason, the Canadian Real Estate Association created the MLS® Home Price Index (HPI) for major cities to give a more accurate reflection of pricing trends. The HPI establishes attributes for a handful of typical housing styles; Single Family, One Storey, Two Storey, Townhouse, Apartment and a composite of all five. It then establishes a base value to each with the starting point of 2005. From that starting point, changes in value are recorded over time to get a better sense of what is happening to pricing and where prices may be trending. For example, the MLS® HPI value for a typical single-family home in January of 2005 was $140,400. This value reached its peak in May of 2015 at $329,500. At the end of January 2019, this value is at $304,300, down from $307,300 last January. This indicates a less drastic decline in year-over-year values than the average price of a sold Saskatoon home would suggest.

The total MLS® dollar volume for sales in the Saskatoon Region for January was $84 million, down six percent from a year ago and comparable to 2017. In spite of this dollar volume decline, January home sales on the Multiple Listing Service (MLS®) in Saskatoon declined by only one percent in January to 199 transactions. The region surrounding Saskatoon had 60 MLS® sales in January, only five fewer than last January and 18 percent more than in January 2017.

Residential MLS® listing totals for January were the lowest in the past six years with 555 new listings introduced to the market, down ten percent from last January. For the market surrounding Saskatoon, the number of new MLS® listings was unchanged from a year ago with 216 units listed for sale. “New listings to the market are not always houses being introduced for the first time to the market,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR). “Many new listings are homes that did not sell in the initial listing attempt and are relisted, often at a revised price.” The total number of active listings as at the end of last month was 1,450 compared with 1,529 last year. “It’s positive to see the overall number of active listings decline to prepare the way for prices to recover,” adds Yochim. “Some price ranges still have a good supply to choose from while others do not.

For further information, please contact:

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

Saskatoon home sales fall five percent in 2018: SRAR

December home sales through the Multiple Listing Service (MLS®) totalled 164 in Saskatoon, 20 percent fewer than were sold in December of 2017. The region surrounding Saskatoon had 43 MLS® sales in December of 2018, down just one from the same period last year. The total number of residential sales for 2018 in Saskatoon was 3,329, a five percent decline compared to the previous year. 2018 is the fourth straight year of declining Saskatoon home sales. By comparison, there were 4,417 MLS® homes that traded hands in 2014, a peak sales year for Saskatoon. There was no change in the total annual sales for the surrounding region with 986 residential MLS® transactions recorded.

The total dollar volume for MLS® residential sales in Saskatoon in December was $55.6 million, down 20 percent from December of 2017. The total dollar volume for the entire year reached $1.108 billion, down eight percent from 2017. The combined dollar volume for Saskatoon and region last year was down four percent for the year at $1.524 billion.

Residential MLS® listing totals for the year were also lower than previous years. 7,956 residential listings were recorded for Saskatoon in 2018. This is an 11 percent reduction from 2017’s total of 8,969. The five-year average for new listings in Saskatoon is 9,081 per year.

“Even though sales are down, having fewer new listings has helped,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR). Active listings fell to 1,487 by the end of the year. This is consistent with the five-year average of 1,480 available properties and well below peak listing numbers seen in July of 2017 when there were 2,210 homes for sale in the city of Saskatoon. “Available properties will vary depending on the neighbourhood, price range and style,” cautions Yochim. “Some price ranges still have a good supply to choose from while others do not.”

When it comes to home price trends, the best indicator of what is happening with home prices is the MLS® Home Price Index. The Home Price Index establishes attributes for a typical single-family home with a base value in 2005. From that starting point, changes in value are recorded over time to get a better sense of where prices may be trending. The value for the typical single-family home when the index began in January of 2005 was $140,400. This value reached its peak in May of 2015 at $329,500. At the end of December, it had slipped to $307,000, down from $310,900 a month earlier. December’s number is virtually unchanged from a year ago, however, it had been trending downward since the middle of 2018.

For further information, please contact:

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

Saskatoon real estate listings continue to fall in October 2018: SRAR

The total number of new MLS® residential listings in Saskatoon this year reached 7,111 by the end of October. This represents a year-over-year decline of 12 percent. By this time last year, 8,065 properties had been listed for sale. The number of residential listings for Saskatoon and region is now at 10,929, down ten percent from last year. New listing numbers have seen year-over-year declines each month this year.

This decline in new listings has contributed to lower inventory levels in Saskatoon. At the end of October, there were a total of 1,808 homes for sale in Saskatoon and an additional 1,095 in the regional market surrounding the city. The five-year average for active listings in Saskatoon is 1,806. The ten-year average is 1,487.

“Since 2015, the Saskatoon market has experienced higher inventories of active listings. This puts downward pressure on prices and upward pressure on the sales to new listing ratio,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®.

The average price of a Saskatoon home was $332,000 at the end of October, down four percent in a year. It’s now lower than it was two years ago by $20,000. Although much focus in real estate is on the average price, this measure can be misleading and is easily skewed by shifts in popular price ranges.

A better indicator of what is happening with home prices is the Home Price Index (HPI). The HPI establishes attributes for “benchmark homes” of various types and tracks price changes for those homes since 2005. The price of a benchmark single-family home in January of 2005 was $140,400. This category reached its peak price in May of 2015 at $329,500. Currently, the benchmark price of a Saskatoon single-family home is $312,600. That’s up slightly from last month, and $1500 higher than it was a year ago. The benchmark price for a typical townhouse in Saskatoon was $222,900 at the close of October. Apartments closed the month at $180,100.

MLS® sales were at 285 for Saskatoon in October, unchanged from the same month last year, but down nine percent from October 2016. Year-to-date, the total number of residential sales on the MLS® system in Saskatoon was 2,964, down two percent from last year. For Saskatoon and region, the total number of sales was 4,074, a one percent decline from 2017.

“It’s encouraging to see home sales at a comparable level to last year in spite of economic challenges and the “stress test” changes to financing earlier this year,” comments Yochim.

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

Average home price in Saskatoon continues to fall through September, 2018:SRAR

Saskatoon, October 3, 2018.

In the month of September, there were 268 residential sales on the MLS®. This is similar to September of 2017. The total number of sales for the first three quarters of 2018 was 2,679, a five percent decline from last year. By comparison, in the first three months of 2016, there were 2,935 sales in the city of Saskatoon.

Active listings in Saskatoon continued to shrink with a year-over-year decline of seven percent. In Saskatoon, at the end of September there were 1,944 active listings compared to 2,082 a year ago. Active listings are higher in the region surrounding the city which includes the cities of Martensville and Warman. At the end of September there were 1,161 available properties compared to 1,086 for the surrounding area. The decline in available properties is mostly attributable to an overall decline in new listings coming on the market. Year-to-date, there have been 6,521 properties listed in the city of Saskatoon, a decline of 11 percent compared to 2017. In the month of September, there were 648 new listings in Saskatoon. By comparison, in September of 2017 there were 767 new listings and 779 in 2016.

“It seems that sellers who are not highly motivated are choosing to wait until conditions are more favourable to sell,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “Currently we are in a buyer’s market with elevated levels of inventory and downward trending prices for most properties,” he adds.

Year-to-date, the average price for a home in Saskatoon is $332,700 which represents a decline of four percent from a year ago. By comparison in the past three years, the third quarter average price was $347,165 in 2017 and $352,103 in 2016. Although much focus in real estate is on the average price, the average can be misleading and is easily skewed. A better indicator of what is happening with home prices is the Home Price Index.

The Home Price Index establishes attributes for a home with a base value in 2005. From that starting point, changes in value are recorded over time to get a better sense of what is happening to pricing and how prices are trending. The value for the typical single-family home in January of 2005 was $140,400. It reached its peak in May of 2015 at $329,500. Currently, this value is at $312,200 which is the highest level for 2018 and is virtually unchanged from a month earlier. The Benchmark price for a typical Townhouse style property in Saskatoon was $219,700 last month, this is the lowest point since April of 2007 when the value was $205,300. For apartment style properties, the Benchmark value of $176,200 in September was the first increase since December of 2017 when the value was at $190,600.

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

Saskatoon real estate listings (MLS®) fall for 8th consecutive month: 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 of 2018 follows.

For the seventh straight month, the number of active residential listings in the Saskatoon market was down year-over-year (it’s actually eight consecutive months, but who’s counting). At the end of August, there were 2,019 active residential listings in the city, a decline of eight percent from a year ago. Of the active listings, approximately 1,227 are single family homes while just over 780 are condominiums. The decline in active listings is largely due to a drop in the number of homes listed this year compared to last. To date, a total of 5,875 residential properties have been listed in Saskatoon on the Multiple Listing Service® (MLS®). That’s down 11 percent when compared to the end of August last year. “In a slower market, one typically sees fewer speculative sellers than in a hot market,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “It’s important to bear in mind that homes sell in all markets. If a seller needs to sell then they must be sure to have good advice and price to the current market conditions,” adds Yochim.

In the month of August, there were 329 residential sales through the MLS®. This is on par with August of 2018 and just slightly below the five year average of 352. Year-to-date, there have been 2,411 residential MLS® sales in Saskatoon. Of these 1,751 are single-family properties, unchanged compared to the first eight months of last year. On the other hand, 648 condominiums traded by the end of last month, 11 percent fewer than last year.

Year-to-date, MLS® sales of homes priced between $200,000 – 300,000 totaled 657 transactions, down from 707 last year. The number of homes that sold between $350,000-750,000 was also lower by just over 100 sales from 1,036 transactions in 2017. So far in 2018, a total of 41 properties have sold in excess of $750,000 in Saskatoon, on par with last year.

The Home Price Index (HPI) Value for a single-family home in Saskatoon increased slightly from July to $312,200. 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 value for townhouse style residences declined for the month to $225,200, down from $234,400 in July. Benchmark pricing for apartment style condominiums continues to decline for the eighth straight month. Year-to-date, the average sale price was $334,226, down four percent decrease from this time 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 HPI value is a better indicator of the market.

Last month, the average home in Saskatoon took 52 days to sell in Saskatoon. The five year average for the month of August is 50.4 days.

For further information, please contact:

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