The October release of the Royal LePage House Price Survey* showed the moderate, year-over-year increases in Saskatoon real estate were rather flat during the third quarter of 2015. However, home values rose to $368,722, which is an increase of half a percent.
During that quarter, the median price of a two-story home in the area rose to $434,807, or up .6%. That said, bungalows saw a decline of just .1% to an average of $369,678, while condominiums experienced a year-over-year increase of 2.7% to $246,191.
Why the Decline?
The decline has much to do with a decrease in population growth and a slowdown in employment growth, resulting from lower oil prices and creating some caution in the home sales arena. Regardless of how cautious buyers may be, there is still a lot of activity occurring within the Saskatoon real estate market. In fact, the experts expected the market to be hit even harder because of a downturn in the energy sector, but employment and job growth have helped keep things at moderate levels.
A Promising Future
On the national level, the year-over-year price increases have been moderate to strong. In most Canadian markets, there was an 8% increase and two-storyz homes saw a 9.9% increase. The prices of bungalows and condominiums went up, as well, which means all sectors of the housing market have seen some amount of an increase.
Most of the economic slowdowns that are energy sector-related have occurred in western Canada. However, increases in industrial activity in other parts of the country have helped balance out those declines, and the Bank of Canada’s recent interest rate cuts have added to the continued growth of the market as a whole.
Nonetheless, home ownership remains bright for the future of Canada and those who are looking to buy homes. If you would like to start looking for Saskatoon real estate or want a valuation for your home, get in touch with me.
*For the Royal LePage House Price Survey to come up with its data, it analyzes home values for 53 of the largest real estate markets in the country.