Courtesy: Saskatoon Star Phoenix
A drop in the number of home sales in Saskatoon last month is a result of an increase in property listings, the Saskatoon Region Association of Realtors' executive officer said Monday.
"There is less urgency when there is more inventory to select from," Harry Janzen said in an interview, saying the increase in listings is part of a continued market correction in the city.
But despite the decrease in sales, which fell 17 per cent to 364 home purchases in June compared to 441 purchases during the same month last year, the average selling price for a home moved up, increasing seven per cent to $295,963 last month from $276,194 in June 2009. The number reflects the market's interest in houses in the $300,000 to $350,000 price range, Janzen said.
Although sales dropped last month, Janzen noted the city's residential real estate sector remains stable. June's average selling price is only $1,447 higher than May's, only seven more homes were listed for sale in June, at 676, than the same month last year and year-to-date listing numbers in 2010 are on-par with 2009 at 3,838.
Year-to-date, 1,863 homes have been sold in the Saskatoon region, nearly identical to the 1,866 homes sold by the end of June 2009 and at the end of last month, 1,412 homes were up for sale -- only a handful of listings away from the 1,421 listed during the same time last year.
"It's almost boring," Janzen said with a laugh. "It's a great market, it's just that there's not a lot of fluctuations up and down and in a lot of ways that's good, because when that happens consumers have a lot more confidence."
Meanwhile, the residential real estate market in areas surrounding Saskatoon are even more stable than the city's, he said. In June, 101 homes were sold in outlying communities, a three per cent increase from June 2009. At $254,203, the average selling price in bedroom communities is up one per cent from last year and at $252,788, the year-to-date average selling price rose four per cent from the first six months of 2009.
Property listings in surrounding communities dropped slightly last month, falling four per cent to 246 homes from 257 listed during the same month last year.
Janzen said the region's housing market should remain stable for the remainder of the year.