Hot July slightly cools Saskatoon and region housing market
Saskatoon — Hot weather and summer holidays brought a slight cooling to Saskatoon and region’s housing market, as sales and total dollar volume fell by 9.8 and 9.4 per cent respectively from last July.
Multiple Listing Service®(MLS) sales totaled 481, down from 533, while listings rose a marginal 0.4 per cent to 1,140. Dollar volume fell to $154.7 million from last year’s $170.7 million, reported the Saskatoon Region Association of REALTORS®(SRAR).
“Typically people think summer will always be busy, but spring is the busiest market,” said SRAR CEO Jason Yochim. “It tapers off a bit in summer. Winter weather can be brutal, and people take advantage of summer when it’s here.”
Still, year-to-date numbers remain up over 2018. Sales rose 4.4 per cent to 2,968 from 2,843, while dollar volume is up 2.8 per cent to $964.7 million from $938.7 million. Listings so far this year are down 2.2 per cent, to 7,724 from 7,900; and well down from 2017’s 8,692.
In the city of Saskatoon, July sales were exactly on par with last year’s 390 transactions and well up from 310 in 2017. Dollar volume fell 1.7 per cent to $129.4 million, while listings rose 5.5 per cent to 748 from 709.
Year-to-date, and largely due to a strong spring market, the city’s dollar volume is up six per cent to $739 million from $696.4 million last year. Sales increased seven per cent to 2,228 from 2,081 and listings fell three per cent to 4,952 from 5,116.
Active listings in Saskatoon are down 5.7 per cent to 1,932 from 2,048 last year, while the region’s listings are down 0.7 per cent to 1,213 from 1,221.
In July, the city’s sales-to-listings ratio reached 52 per cent, which is considered a balanced market.
“Inventory levels are still declining, and that’s a good sign,” Yochim said. “The slight decline over the last three years helps us maintain a balanced market.”
The city’s average price slipped 1.7 per cent to $331,780 in July. Year-to-date the price has fallen one per cent to $331,649.
“It’s good to see in the city that while the average price dropped in 2017 and 2018, we’re very close to those values, so it’s levelled a bit,” Yochim said. “Overall, it’s positive; it’s stable. We’ve seen some good growth in Saskatoon in the last quarter. Our sales numbers year-to-date are the highest in three years.”
The surrounding region saw less-robust interest from buyers. July sales dropped nearly 40 per cent to 69 sales from last year’s 114, and dollar volume fell 35 per cent to $21.5 million from $33 million. Listings were down 3.3 per cent to 291 from 301.
However, the region’s average sales price rose 7.5 per cent to $311,998 in July, up from last year’s $290,322. To date, the price is down 5.2 per cent to $294,389.
Prince Albert and region saw a burst of activity in July, posting 75 sales for an increase of 74.4 per cent from last year’s 43. That brings year-to-date sales to 345, up 5.8 per cent from 326. Dollar volume jumped accordingly by almost 49 per cent to $16 million, up from $10.8 million last year. Listings were also up by 4.8 per cent in July to 152, but down by one to 1,052 year-to-date.
Average prices fell in both Prince Albert and region, by 12 per cent to $217,111 in the city proper and 26.3 per cent to $190,991 in the region.
“A little pent-up demand finally kicked in, which is good. Buyers are seeing the inventory they’re looking for to purchase,” Yochim said. “As you have lower sales, if it starts to grow the inventory, you’re going to have more selection.”
The Battlefords region also saw an increase in sales, which rose 8.3 per cent to 39 in July and 2.7 per cent to 225 year-to-date. Dollar volume fell 19 per cent to $7.3 million from last July’s $9 million, and 14.4 per cent to $43.4 million year-to-date.
However, listings fell 12.6 per cent to 111 in July, and are down 10 per cent to 786 year-to-date. The average sales price is down seven per cent this year to $201,053.
Active listings are also down in The Battlefords by 11 per cent to 207, and “sales are up over last year, so that’s a positive sign,” Yochim said.
For further information, please contact Jason Yochim, SRAR CEO, at 306-343-3444.