Overall in Saskatoon, home sales are still on their way up and April was no exception. Year to date, sales are up 8% over last year. Growth can be seen in most price ranges but the $400,000 and up are down 5% from last year at the same time. Conversely, houses selling below $400,000 are up 18%. The driving factor here is the surplus of these higher end homes, which is evident when you start to drive around the new neighbourhoods in Saskatoon and see all the 'For Sale" signs. Builders are sitting on these higher end homes, which have a much higher carrying cost. Unfortunately for those builders and owners of these higher end homes, margins and increased equity might be cut a bit thinner.
For the first time this year, there was a drop in the average sale price in Saskatoon from $348,000 to $341,000. Clearly this is attributed to the decline in sales of higher end homes and not an indication that the market is falling. The current inventory of homes in Saskatoon is 1443 which is an increase of 22% over last year at this time. Increased inventory means increased competition, which means lower prices, right? Well, as I said early, in some price ranges that may be the case. But, as always, the starter home price range ($250,000-$450,000) represents a much smaller portion of this inventory and has a quicker turn-over rate.
If you have any questions about the real estate market in Saskatoon or surrounding areas, please drop me a line. Want to know what your home is worth? Call me for a quick appraisal to see where your investment is at!