Saskatoon Spring Market Warming Up/SRAR

Home Sales Begin to Recover Despite a predominately negative outlook in the media regarding the housing market in western Canada, it seems that buyer confidence is beginning to gain momentum as we enter in to the spring market in Saskatoon. In the first two months of 2015 unit sales were down 22% from the same period in 2014. In March, the 466 transactions in Saskatoon represented a 10% reduction from March of last year.

It appears that momentum has been gradually building in the past couple of weeks. "The MLS® Home Price Index (HPI) composite benchmark value of $313,700 for the Saskatoon market continued its upward trend that started in January." states Jason Yochim, CEO for the Saskatoon Region Association of REALTORS®. The HPI is the most accurate indicator of the direction that the housing market is trending. "Although the increase is slight it reverses a predominately downward trend in the latter half of 2014." adds Yochim.

In some neighborhoods this market trend is sharper than others while in some areas the market is actually trending downward. "With this kind of differentiation of neighborhood activity, the importance of the insight of a knowledgeable professional REALTOR® cannot be overstated." cautions Yochim. Currently there are 1,748 active residential properties in Saskatoon which is up 30% from the same time last year. This represents approximately 5 months of inventory which is down from 8 months in January. Almost 1,100 of the homes for sale in Saskatoon are single family homes with approximately one third of these constructed in the past year.

Of interest to many is the sales to listing ratio which is an indicator of whether the market favors buyers or sellers. A sales to listing ration between 40% and 60% is considered balanced. This percentage is typically lower in the first quarter and currently sits at 39% which is just outside of "balanced territory" and 12 percentage points below the five year average of 51% for the first quarter of the year. "An increase in inventory acts as a control mechanism for housing prices to keep them in check and also provides greater selection for the home purchaser." comments Yochim "buyers get frustrated and complacent when there is little to choose from and when they sense the market is climbing out of reach." More selection is likely why there are more buyers in the market comfortable with making a purchase that fits their needs and budget. "This also means that sellers need to be careful when pricing their home in a competitive market." he adds.

Dwain Anderson

Dwain Anderson

CENTURY 21 Fusion
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