Saskatoon home buyer’s market persists through May, 2018: SRAR

Fewer homeowners were ready to put their home on the market this year compared to last. In May, a total of 943 properties were added on the Multiple Listing Service® (MLS®) in Saskatoon representing a nine percent decline from last May. Year-to-date, there have been 13 percent fewer homes listed in Saskatoon.

The total number of active listings in Saskatoon at the end of May was 2,001, just slightly above the five-year average of 1,945 units. “Typically we see the highest number of active listings between May and September,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. “It’s the most active time in our market, largely due to favourable weather,” he added. Saskatoon MLS® inventory levels reached an all-time high in July of last year with 2,210 homes for sale. At the current rate of sales, it would take five and a half months to liquidate the current stock of active listings.

In May, there were 364 Saskatoon homes sold, a decrease of 13 percent from the same month last year. Year-to-date, sales for the city are down seven percent with a total of 1,345 residential MLS® home sales. So far this year, sales have declined in every price range with the exception of the under $200,000 range which saw a 30 percent increase with a total of 203 sales. The price range with the greatest decline in sales were homes priced between $450-500,000 with a year-to-date total of 85 sales, a 17 percent drop from last year. Homes selling between $750,000 and $1M are on par with last year at 19 sales. Sales with prices in excess of $1M however are off sharply with three just MLS® sales year-to-date. In 2017, there were three home sales in May alone over $1M and nine year-to-date.

The sales-to-listing ratio fell from 43 percent in April to 39 percent in May. The sales-to-listing ratio is a comparison of the number of sales for a period of time against the number of new listings. “Saskatoon remains a buyer’s market, however, homes that are priced to market and in good condition will still command great interest and in some cases competing offers,” comments Yochim. Last month, the average home in Saskatoon took 47 days to sell. This is the lowest time to sell so far this year.

Year-to-date, the average sale price was $334,449, a four percent decrease from the same period last year. Since averages can be misleading, a better reflection of the market is the median. The median home sale price year to date is $320,000. The five year average for median residential home sale prices in Saskatoon is $341,980.

The Home Price Index Composite Benchmark Price (HPI) continued on an upward trend for most home types (except apartments) again in May. The HPI is the most accurate indicator of where home prices are trending.

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

Saskatoon homes sales gain some ground in April, 2018: SRAR

Saskatoon home sales were up 6.7 percent compared to April of last year with 335 units selling last month. This represents a third of home sales in Saskatoon so far this year. Although year-to-date sales for the first four months of 2018 are down 4.8 percent from 2017, last month’s increase in sales helped to close the gap. The increase in April sales was also a welcome reversal of a two month trend of declining sales seen during February and March. Unit sales for April showed increases for homes priced under $350,000. “Homes that are properly priced in that entry level have been seeing competing offers in many cases,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS®. Sales of homes in the $400,000 to $450,000 range increased by 30 percent in April over the same month last year with 39 sales being reported.

Also of note, year-to-date there have only been two residential sales over $1M in Saskatoon compared with six for the first four months in 2017.

The number of active residential MLS® listings in Saskatoon at the end of April was 1,834. This is consistent with the five-year average of 1,830. The drop is largely due to a decrease in the number of new listings brought to the market. The number of new listings for the first third of 2018 was 2,594 compared to 3,024 by this time last year, a 14 percent decline, year-over-year.

The sales to listing ratio improved to 43 percent, up from 37 during the same month last year. The sales to listing ratio is a comparison of the number of sales for a period of time to the number of new listings. “Although the sales to listing ratio is moving towards balance, I emphasize we are still in a buyer’s market,” cautions Yochim. The increase in this ratio in April was largely due to the 6.5 percent reduction in new listings and the comparative 6.7 percent increase in sales. Last month, the average home in Saskatoon took 53 days to sell compared with the five year average of 47 days. 

The average sale price saw its first increase this year as it grew by 1.75 percent to $318,729 in April. For the first quarter of 2018, the average home sale price in Saskatoon was $333,826. Since averages can be misleading, a better reflection of the market is the median. The median home sale price increased slightly from March to $320,000. The five year average for median residential home sale prices in Saskatoon is $332,650. 

The Home Price Index Composite Benchmark Price (HPI) increased slightly for the second straight month to $294,100. This appears to indicate an upward trend for home prices going forward.The HPI is the most accurate indicator of where home prices are trending.

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

Saskatoon home sales see declines in Q1, 2018: 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 March 2018 follows.

In the first quarter of 2018, there were 648 Saskatoon home sales, a 10 percent decline on a year-over-year basis. The decrease in sales for the month of March was 24 percent with just 234 residential transactions occurring last month.

The number of new listings introduced on the MLS® for Saskatoon is also down for the quarter. There have been 1,807 Saskatoon homes listed so far this year compared to 2,183 for the same period in 2017.

At the end of March, active residential listings in Saskatoon totaled 1,670 for both single and multi-family homes, consistent with the five year average of 1,695. The inventory would take just over seven months to liquidate at the current rate of sales. 

The reduction in active listings is not only the result of fewer homes being listed on the market. “Some sellers may have decided not to re-list their home just yet, opting to wait for the more active spring market to try their luck,” according to Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR). “Many sellers believe that spring is the best time to sell,” he adds.

The sale-to-listing ratio is a comparison of the number of sales to the number of new listings for a specific period of time. Understanding this ratio allows us to determine if we are in a buyer’s market, a seller’s market or a balanced market. A ratio between 40% and 60% is considered to be a balanced market. A ratio below 40% is considered to be a buyer’s market, while a ratio exceeding 60% is considered to be a seller’s market. The sale-to-listing ratio for March was 35%, down slightly from the five year average of 40%.

Last month, Saskatoon homes took an average of 64 days to sell compared to 47 days in March of 2017. The five year average days to sell for the Saskatoon market is 50 days. 

The average year-to-date residential sale price continued its steady decline falling 2%. For the first quarter of 2018, the average home sale price in Saskatoon was $333,826. Since averages can be misleading, the median price tends to be a better reflection of the market. The median home sale price continued to decline from $330,000 in January, to $317,250 in March. In March of 2017, the median price was just slightly higher at $320,000. The five year average for median residential home sale price in Saskatoon is $330,000. 

The Home Price Index Composite Benchmark Price (HPI) increased slightly for the first time since June of 2017 to $293,200. By comparison, the composite benchmark has not been this low since February of 2012. The highest point ever reached was $319,600 in May of 2015. Declines to the HPI began showing signs of slowing in January of 2018. The HPI is the most accurate indicator of where home prices are trending.

Jason Yochim CAE, CRAE

Chief Executive Officer 
Saskatoon Region Association of REALTORS® 

Inventory of Saskatoon homes continues to decline in February 2018: 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 February of 2018 follows.

A year-over-year drop in new listings contributed to a declining availability of homes in the Saskatoon market in February. At the end of last month, there was a total of 1,588 active residential listings in Saskatoon. This represented a four percent decline from a year ago when there were 1,659 properties available.

By the end of February, REALTORS® had listed a total of 1,139 residential properties for the year, a 14 percent decline compared to 1,332 listings that had been added to the system by this point in 2017.

“For the past couple of years inventory levels have hovered around 2,000 available properties,” comments Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR). “It is definitely a positive trend to see inventory levels shrinking. This is helpful for slowing price declines,” he adds. The average sale price for a home in Saskatoon slipped one percent in February.

Although the number of sale transactions in February (211), was down six percent from the same month last year, strong sales in January kept year-to-date sales one percent ahead of last year. Year-to-date, a total of 413 residential sales have been recorded on the MLS® in Saskatoon. The overall dollar volume for home sales in Saskatoon was just under $70 million which is down six percent from last February. The year-to-date dollar volume of transactions is unchanged from last year at $139 million. So far this year, sales in the region surrounding Saskatoon, which includes the cities of Warman and Martensville, totaled 122 units representing, a 14 percent increase from last year. The total dollar volume for this area was just under $39.5 million for the first two months of the year, an increase of 12 percent compared to last year.

The Home Price Index (HPI) composite benchmark value declined just slightly in the last 30 days to $292,800. Although this is its lowest point since February of 2012, the decline in the composite price appears to be slowing. With the exception of a couple of months in the spring of last year, the HPI composite value has been in an overall decline since August of 2016 when the value was $317,600.

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

Saskatoon homes sales increase for third 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 January 2018 follows.

Saskatoon home sales are off to a positive start in 2018. The number of transactions that occurred in January was 203 which represents an 11 percent increase over January of 2017. The five-year average for January is 194 units. Last month’s sales activity also resulted in an increase in the overall dollar volume by 10.5 percent to $90,673,143 which is the highest dollar volume for any January since 2014. Sales in the region surrounding Saskatoon, including the cities of Warman and Martensville showed a 27.5 percent increase with 65 transactions and an 11.7 percent increase in dollar volume to $18,049,600.

“While it is still very early in the year, the past three months have shown trends of increasing sales for Saskatoon, which is certainly a positive sign after many months of lower sales”, according to Jason Yochim, CEO of the Saskatoon Region Association of REALTORS® (SRAR).

The average sale price for a home in Saskatoon was $344,771, up one percent from last January while the median price increased by 4.1 percent to $330,000. Significant increases in the number of homes selling in the higher price ranges contributed to these upward pricing changes. Overall the number of sales between $400,000 and $1 million increased by 45 percent with 64 sales. The number of homes that sold in January between $500,000 and $750,000 made up just over a third of the 64 transactions. The number of home sales between $200,000 and $300,000 remained strong and consistent with last January at 56 transactions. Many of these would be condominium sales which helps to absorb inventory in that sector of the market.

The Home Price Index (HPI) composite benchmark value declined by 4.1 percent in January to $293,300, its lowest point since February of 2012. With the exception of a couple of months in the spring of last year, the HPI composite value has been in an overall decline since August of 2016 when it was at $317,600.

“If inventory levels continue to decline due to absorption and fewer properties being listed, we should expect to see some increase in home prices later in the year,” predicts Yochim. The number of active listings in Saskatoon at the end of January was 1,529, the lowest level in the past three years for January and a four percent reduction from last year. This was aided by the increase in sales and a 14 percent decline in the number of new listings for January.

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