Like all real estate markets, the Saskatoon real estate market has its highs and lows. Over the past five years, buyers and sellers have been up close and personal with the fickle nature of this market, and it hasn’t been all good. Fortunately, it currently seems to be in an upswing, which is actually good for both sides. Below is a brief analysis of the current market with statistics provided by the Saskatoon Region Association of Realtors.
Dollar Volume is Up
In August 2016, the unit sales and dollar volume for the market was up 13 percent year-over-year. From August 2015, the sales and dollar volume are only down four percent. The dollar volume for Saskatoon and its surrounding areas has greatly increased from the year before. It’s actually up 38 percent, which is a record for the month of August. This makes the entire dollar volume for the month approximately $210 million, which crushes the previous record of $180 million set in 2013.
Unit Sales Are on Track
The unit sales year-to-date for August 2016 is actually lower than the calculation for 2015, but this is an auspicious sign for several reasons.
- Currently, the unit sales year-to-date is 2,614 units, which is only seven percent less than 2015. At this time in 2015, the number was 2,811 units. However, there has been a recent influx in selling activity.
- The unit sales figure for August 2016 is actually a great increase over what’s been seen in the past five years. There were 373 in the month of August, which is a little bit higher than the five-year average. Besides that, new listings and an increase in sales is helping to decrease a historically high amount of inventory in the Saskatoon real estate market. Saskatoon currently has 1,956 unit listings compared to a five-year average of 1,634 listings.
- Inventory levels continue to drop, as there has been a reduction in new construction, especially in the multi-family home market where units just aren’t selling.
Selling Has Become Faster
Right now, it takes an average of 47 days to sell a home in the Saskatoon housing market. This stat also comes with an average sale price of 97.2 percent of the original list price. Selling like this is happening because homeowners are becoming aware of the fact that this is a good time to receive offers close to their asking price. It’s possible that this has played a role in the increase in sales in the month of August.
Home Prices Remain Steady
Average home prices in Saskatoon are holding steady at $352,000 with median home prices at $335,000. The Canadian Real Estate Association’s Composite Home Price Index (HPI) for Saskatoon in August was 231.9, which is better than it was in 2015, at the same time. This index is calculated by using the average home value and base year to measure changes in homes’ values over a certain period of time. Saskatoon’s HPI indicates that home prices are mostly stable.
If you’re looking to buy or sell real estate but you’d like some expert help navigating the current market, please don’t hesitate to call me.