The Regina real estate market is weathering the storm of plunging oil prices much better than our neighbours in Alberta. There was a total of 3,392 sales reported across all geographic areas including bedroom communities, compared to 3,642 sales in 2014. Regina home sales were down 7% from 2014, whereas Calgary saw a 24% decline in sales last year.
For 2015, the MLS® Home Price Index (HPI) – a much more accurate measure of housing price trends than average or median price - reported a composite residential price of $273,400 and index of 259.4 in the city. These are down 4% from last years levels of $284,700 and 270.1, as reported by the Association of Regina Realtors®
The average sale price in the city in December was $293,328, down 7% from 2014’s $314,641. There is a variance of $20,000 between the average price in the city and the HPI composite price. This is entirely due to the skewing effect on the average paice of a shift to a larger proportion of higher priced homes selling.
The supply of listing was at the highest level in over 20 years which caused a drop in prices. At the end of the year, 957 homes were listed on the MLS® system in the city, up 2% from 941 last year, and up 26% from 705 in 2013. Supply peaked at 1,499 listings in June and has been on a steady decline since then.
Lower economic and job growth levels had a dampening effect on demand for housing in 2015. This, coupled with elevated supply levels experienced during the year, led to reduced sales activity and downward pressure on selling prices. Going into 2016, most economic forecasts for the area remain modest at best – unless there is an unexpected spike in economic and job growth levels this will continue to soften demand compared to recent years. Supply levels will likely continue at elevated levels which will provide a great deal of choice and options for buyers.
If you’re thinking about buying or selling a home, contact me! I know the market and know how to handle the process as quickly and smoothly as possible – and genuinely care about your needs and your dreams.
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