SOFT MARKET CONDITIONS CONTINUE IN NOVEMBER
Home sales through the Regina and area MLS® System in November continued to be soft, said the Association of Regina REALTORS® Inc.
There were 229 sales recorded during the month in all areas, down 4% from 239 in 2017. This is the lowest level of sales since 2012 when 228 sales occurred and below the immediate past 5-year average of 244 sales and 10-year average of 246. There were 184 sales recorded in the city, a decrease of 7% from 2017 when 198 sales were reported. The number of sales in the city was also below the 5-year average of 202 and 10-year average of 207.
For the November year-to-date there have been 2,916 sales recorded in all areas, a decrease of 6% from 3,113 last year. In the city, there have been 2,356 sales posted compared to 2,544 in 2017, down 7%.
For November, the MLS® Home Price Index (HPI), a much more accurate measure of housing price trends than average or median price, reported a composite benchmark residential price of $272,100 and index of 254.8 in the city, down 4.0% from $283,500 at the same time last year. This is part of a price loss trend that began one year ago, and is now 10% below the composite price reported in November 2013 of $302,400. The HPI measures residential price trends based on four benchmark home types, with the index set at a base of 100 for January 2005.
A good portion of this price loss has occurred in the last twelve months due to slowing demand, elevated supply levels and the cooling impact of federal mortgage stress rules introduced in the fall of 2016 and a second round in January 2018. These rules have distorted and weakened demand locally by causing many buyers hoping to purchase a home to look down in price range to qualify for a mortgage, or leave the market altogether.
The sales dollar volume of $68.7M posted in all geographic areas for the month was down 8% from 2017’s $74.6M. Dollar volume in the city of $58.5M was down 5% from 2017’s $61.3M. 2 In the city, there were 1,466 active residential listings on the market at the end of the month, an increase of 13% from 2017’s 1,300 but down from 1,594 listings at the end of October 2018.
There were 391 new listings placed on the MLS® System during the month in all geographic areas, down 2% from 2017’s 399.
Homes that did sell in the city sold in an average of 69 days in the city and 79 days in all areas. These compare to 61 and 64 days respectively last year.
“We continued to see the soft market conditions, which have prevailed for much of the year in November. Weakened demand due to economic reasons and more difficulty for buyers to qualify for mortgage financing have both been factors contributing to the soft market,” said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.
“We are anticipating ending the year with about 3,100 homes exchanging hands through the MLS® System, which is at the lower end of the range of annual sales over the past ten-year period,” concluded Archibald.
The Association operates the Multiple Listing Service® System in Regina and area and publishes the Southern Sask Real Estate Review. The MLS® System is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties for sale.
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