Global News, June 05, 2015 - SASKATOON – Housing sales in Saskatoon have dropped during the first five months of 2015 but the market remains balanced and prices are stable. Those were findings in a report released Friday by the Saskatoon Region Association of Realtors (SRAR).
Between January and May, 1,583 units were sold in the city, down 15 per cent from last year. The five-year average is 1,700 units.
“It should be kept in mind that the past couple of years have been exceptionally good years for the real estate market and today’s sales levels are more reflective of the norm,” said SRAR CEO Jason Yochim.
SRAR reported 442 units moved in May, down from the average of 445 units, but found the market remains balanced with the sales to listing ratio at 43 per cent.
“A balanced market is considered to be when 40–60 per cent of the homes that are listed for sale end up in a sale,” stated the report.
While sales may have dropped, average prices have remained stable – but that may change.
SRAR said a reason why the average price remains virtually unchanged is a decline in sales in certain price ranges below $500,000. SRAR’s cautions that as the summer approaches, prices are expected to decrease slightly due to high inventory levels and sales falling off slightly from the spring market.
Current active listings in Saskatoon topped 2,000, the first time it has reached that level. The five-year average is just over 1,500 units. At current sale levels, it would take five months to liquidate the inventory.
The report also found it currently takes an average of 45 days to sell a home and new housing starts in Saskatoon have cooled off significantly from last year, with 268 permits issued in April compared to 466 for the same month in 2014.