Summer is in full swing in Saskatoon and the same could be said for the extremely active real estate market. Last week in the Bridge City we broke the century mark for sales once again as there were 109 sales recorded on the local MLS, eclipsing last year’s total of 94 for the same week period. The average sale price dropped significantly last week due to high activity in the lower end of the market and closed out at $323,189 while the average days on market was 33. The average sale price under asking price was $7735 last week. Recently the weekly average price has been hovering around the $340k mark and the average days on market has been well under 30. The only explanation I have for this is simply, properties that have been sitting on the market for a long time are beginning to move as activity is picking up. With all the sales and the lack of listings, one would assume there would be some overbid activity. However this wasn’t the case over the past week as there was only 1 sale over asking and another 8 sellers achieved their asking price.
As mentioned earlier, listing activity is quite low and there are only 1236 active listings (754 single family, 406 condominiums) in Saskatoon. During the same time period in 2011, we had over 1430 listings (819 single family, 524 condominiums). In 2011 there were 136 new listings posted on the Saskatoon MLS during the same week period, while last week in 2012 we saw 169 new listings posted which is quite impressive. If listing activity continues to be as strong as last week, we should see inventory levels climb a little. However I wouldn’t expect to see the listing numbers get anywhere near last year’s levels.
Over the short term the new mortgage rules may affect the market and slow things down. Only time will tell, however it’s my belief that this will in fact protect the Canadian real estate market in uncertain times. For any real estate advice, or if your thinking about buying or selling, contact us email@example.com