Activity in the Saskatoon marketplace seems to vary depending on what area and price range a buyer is considering. Homes in the entry level price range between $300,000 and $450,000 experience the greatest demand yet there is much less to choose from compared to higher price ranges. Case in point, in Area 5, on the west side of Saskatoon there are approximately 100 homes in this price range with less than half of these in the older more mature neighborhoods with the balance in Hampton Village. Needless to say the average days to sell in Area 5 is the lowest in Saskatoon at 29 days and a sales-to-listing ration of 49%, also the lowest in the city. A similar situation exists in the older neighborhoods of the east side with less than 50 home available in this same price range and an average of 36 days to sell.
Selection of homes for sale increase significantly when shopping over $450,000. In the newer areas of the east side between $450,000 and $600,000 there are just over 160 homes available with slightly more than half of these homes in Rosewood and Evergreen. The average days-to-sell in this area is 43 which is the longest list to sale time frame in Saskatoon. "It is more of a buyers' market when looking over $500,000 when the existing and new home inventory is taken into account." according to Jason Yochim, Executive Officer with the Saskatoon Region Association of REALTORS®. Home owners and developers have to make corrective price reductions to respond to this market condition to move their homes. "Our association is seeing more listed properties being cancelled and relisted at lower prices in order to attract new interest from buyers," adds Yochim.
Canada Mortgage and Housing forecasts are also conservative for single detached new housing starts. In Saskatoon last year there were 2,025 new single family housing starts which is expected to decrease to around 1,600 by years end. The forecast for 2014 is expected to mirror that of 2013 with1,650 starts projected.
The average selling price in Saskatoon continues to hover around $345,000, however, with a bit of cooling in the higher price ranges will likely remain stable into next year.