Resale Prices to Rise

Resale prices to rise


This is a good time to buy a house, report says

By Neil Scott, Leader-Post November 27, 2010

Resale home prices are poised to increase in both Regina and Saskatoon over the next year, according to a report released Friday by the Conference Board of Canada.

The report projects resale home prices in Regina will go up by five-to-seven per cent over the next year, while prices will increase by seven per cent or more in Saskatoon.

But the Conference Board, in its monthly resale index report for November, is rating the housing market in both cities as being "balanced.''

"It's a good time to look for a house because the market is balanced," said Rob Wiebe, a senior economist with the Conference Board.

That reasonable balance between the supply of houses on the market and potential buyers looking for homes creates an opportunity for sellers to get a reasonable price and for the customers as well to get a reasonable price, Wiebe said, in a telephone interview.

"The real estate market is basically like a dance and one partner leads another,'' Wiebe said.

Sometimes eager sellers who put their homes on the market get more people interested in potentially buying, Wiebe said.

There are other times when a influx of potential buyers convinces homeowners that it is a good time to sell, Wiebe said.

"It's like the chicken and the egg, which comes first?'' Wiebe said, adding that sometimes buyers lead sellers and sometimes it is the opposite.

In any case, the balanced real estate situation in Regina and Saskatoon creates a situation where many buyers and sellers may be ready to dance -- or at least make a deal -- Wiebe said.

The Conference Board bases its projections on a calculation of the number of homes listed for sale compared to the number of sales that have been occurring.

Trends with respect to the actual selling prices of homes are also considered by the Conference Board.

A 7.1 per cent increase in average selling price in Saskatoon in October this year compared to 12 months ago indicates the real estate market in that city has momentum, Wiebe said.

A 4.2-per-cent increase in Regina in the same is also an indication of momentum, Wiebe added.

The Conference Board report said the resale market is balanced in 26 out of 28 major metropolitan markets across Canada.

Quebec City, which was rated as a buyers market was one exception to the general balanced trend. The Saguenay area, which was rated as a sellers market, was the only other exception.

"Resale volumes (nationally) continued to improve modestly in October, with sales coming in above their September levels in 16 of our 28 markets,'' the Conference Board report said.

"The recent rise in sales, combined with the continued decline in listings, led to a rise in the sales-to-listings ratio in 20 markets on a monthly basis in October,'' the report said.

"The slight tightening in markets led to rising prices on a month-over-month basis in 17 markets,'' the report added.

© Copyright (c) The Regina Leader-Post

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