CTV Saskatoon, November 26, 2014 - Housing prices in Saskatoon could be on their way down.
A new report by RBC suggests new listings in Saskatchewan have outpaced resales consistently since 2012. The trend caused prices to drop in Regina and could soon affect Saskatoon.
“The main challenge in Saskatchewan has been a significant increase in homes available for sale. New listings have consistently outpaced resales since 2012, partly as a result of higher new unit completions,” said Craig Wright, senior vice-president and chief economist at RBC.
“This rising listings trend softened demand-supply conditions enough by 2013 to cause price drops in Regina, and it’s now threatening other markets such as Saskatoon.”
The numbers represent improved conditions for buyers in Saskatchewan.
RBC’s affordability measure — which looks at the percentage of household income required for homeownership costs — decreased in the province by 1.3 per cent to 34.1 per cent for bungalows. The drop was the largest decline in the country.
The measure for both two-storey homes and condominiums dropped 0.4 per cent to 38.3 per cent and 23.8 per cent, respectively.
The average price for a detached bungalow was $341,000 — down 3.2 per cent from last year. Two-storey prices dropped 1.7 per cent from last year to $381,200 while condominium prices increased 0.9 per cent to $238,500.