Active listings in the Saskatoon market reached 1,363 units at the end of February compared with 1,098 at this time in 2013. Inventory continued to climb in spite of a 14% increase in sales year over year. In February, there were 282 unit sales which is just slightly above the ten year average of 276. Meanwhile, new listings added to the market last month totalled 580 units which is 29% above the ten year average of 450 units for the month of February. There continues to be a large number of homes available in the new home market in the price range that exceeds $450,000. This has recently resulted in sellers having to adjust their price to respond to the increase in inventory. Homes priced in the established areas below $400,000 continue to be in shorter supply and at times can see multiple offers. "Supply and demand cannot be ignored when it comes to pricing a home" says Jason Yochim, Executive Officer with the Saskatoon Region Association of REALTORS®, "A sellers decision where to set their asking price should be determined by what else is on the market and how quickly they would like a sale. If a home is sitting on the market for an extended period of time, it is generally considered to be priced above market."
The current inventory level represents 4.8 months of inventory in Saskatoon which is 26% higher than the average of 3.8 months over the past four years. According to Yochim, "The months of inventory is simply how long it would take the current inventory of available homes to be absorbed by the market".
According to the Saskatoon MLS® Home Price Index (HPI), the benchmark value for single family homes in Saskatoon increased by 3.82% year over year to $325,700. The largest year over year increase was west of circle drive where the benchmark value increased by 6.16% to $276,500. The benchmark value for homes on the furthest east side of Saskatoon increased by 2.03% year over year to a value of $407,400.
"Irrespective of the stats, every home is unique in its own way and every seller's situation is unique. Trends in the market will affect sellers directly.