- Low inventory and healthy demand account for market gains -
SASKATOON, Jan. 7 /CNW/ - Saskatoon's real estate markets saw solid improvements in the final quarter of 2009 across housing types, according to the latest Royal LePage Market Survey Forecast and House Price Survey.
In Saskatoon, standard condominiums sold for an average of $197,500, up 5.9 per cent from the same period last year. Detached bungalows sold for an average of $310,500, up 3.5 per cent year-over-year, and average standard two-storey home prices increased by 3.0 per cent year-over-year to $338,750.
"At this time last year, Saskatoon's real estate was hitting the bottom of the market," said Norm Fisher, Sales Manager for Royal LePage Saskatoon Real Estate. "Resale activity is up across the board, and higher house prices are support by lower inventory and increased demand, especially for entry level properties."
"Condos are the big movers. In 2009, interest rates went down and entry level homes came into high demand. Condominiums fewer than 1200 square feet are up dramatically in terms of unit sales," added Fisher.
Canada's residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today's Royal LePage Market Survey Forecast and House Price Survey.
"The Canadian real estate market enters 2010 with considerable momentum from an unusually strong finish to the previous year," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010."
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.