Inventory at Highest Level Since 2008
The number of properties available on the Multiple Listing Service® at the end of July stood at 1,615 for Saskatoon. This was partly due to 932 additional properties listed for sale in July, an increase of 19% over last July as well as a reduction in sales of 9% compared to July of 2013, with 420 units changing hands. In 2008, inventory levels spiked in response to a leveling off in the market after the dramatic market activity of 2006/07. "I don't believe we are in a situation where the market is experiencing a correction but rather it seems the long awaited summer weather has buyers opting for vacations instead of house hunting." comments Jason Yochim, Executive Officer with the Saskatoon Region Association of REALTORS®.
An increase in newly listed properties combined with a slowdown in sales resulted in the months of inventory increasing to 3.85 from just less than 3 months in June. "The months of inventory is determined by dividing the number of active listings by the number of sales and gives a sense of how long it may take a property to sell." adds Yochim "Typically the higher the price range the greater the increase in the months of inventory."
The average price year to date was up 3% to $356,800 supported partly by an increase in homes selling at the higher end of the market. Home sales between $500,000 and $750,000 were up 40% compared to last July while a total of 9 sales between $750,000 and $1M was almost double that of July 2013. Year to date, homes selling between half a million and a million were up 29% over the same period last year while there have been a total of 2,801 sales in the Saskatoon market, an increase of 7% over last year. P
Sales activity was also quieter in the market outside of Saskatoon down 2% compared to last July. Year to date the number of sales in the rural and surrounding communities stood at 838 units, an increase of 15%. The number of new properties listed for sale also increased by 15% to 2,128 year to date.
According to the Home Price Index, the Benchmark value for a typical single family home in Saskatoon was $329,700 while the index was at 233.6, continuing a steady upward trend in values since December. In October of 2013, the index showed a slight downward trend through to the end of the year. The Home Price Index reflects the change in value for a typical single family home over time similar to the Consumer Price Index.