Inventory tight in some segments of the Saskatoon real estate market in October, 2013: SRAR

By Norm Fisher November 1, 2013 - The Saskatoon Region Association of Realtors® (SRAR) released the MLS® residential real estate statistics for October of 2013 today accompanied by the following release. Please note that many of the association’s comments touch on “year-to-date” numbers, and some are based on all sales within the board’s trading area. The charts which you see, as always, reflect activity within the city of Saskatoon on a month to month basis over the past several years.

Activity in the Saskatoon marketplace seems to vary depending on what area and price range a buyer is considering. Homes in the entry level range between $300,000 and $450,000 experience the greatest demand, yet there are fewer listings to choose from compared to higher price ranges. Case in point, in Area 5, on the west side of Saskatoon, there are approximately 100 homes for sale in this price range. More than half of these homes are located in Hampton Village while the balance are in the older, more mature neighborhoods of Area 5. Needless to say, the average number of days to sell in Area 5 is the lowest in Saskatoon at 29 days.

The selection of homes for sale increases significantly when shopping in ranges above $450,000. In the newer areas of the east side there are just over 160 homes available that are priced between $450,000 and $600,000. Slightly more than half of these homes are in Rosewood and Evergreen. The average days-to-sell in this area is 43 which is the longest time frame in Saskatoon. “It is more of a buyers’ market when looking over $500,000 if the existing and new home inventory is taken into account,” according to Jason Yochim, Executive Officer with the Saskatoon Region Association of REALTORS®. Home owners and developers have to make corrective price reductions to respond to this market condition to move their homes. “Our association is seeing more listed properties being cancelled and re-listed at lower prices in order to attract new interest from buyers,” adds Yochim.

Canada Mortgage and Housing forecasts are conservative for single detached new housing starts. In Saskatoon, last year, there were 2,025 new single family housing starts. Starts in the same housing category are expected to decrease to around 1,600 for the current year. The forecast for 2014 should mirror that of 2013 with 1,650 starts projected.

The average selling price in of a home in Saskatoon continues to hover around $345,000. With a bit of cooling in the higher price ranges it will likely remain stable into next year.

Copyright Norm Fisher Royal LePage Saskatoon Real Estate