REGINA – At -1.93 per cent, Regina is facing one of the biggest home index price yearly declines in the country.
“It’s not a surprise, certainly at this point in time,” said Gord Archibald, executive offer of the Association of Regina Realtors.
The composite includes 11 major metropolises. Ottawa fared the second-worst at -0.20 per cent while Calgary came on top with 9.48 per cent.
The average Regina home price in March, 2013, was $313,849. The price jumped about 5 per cent to $328,781 in March, 2014.
Gord Archibald says it’s important to note the difference between the index and average price homes were sold for; the former rates the value, whereas the latter is determined by the overall financials, which fluctuate due to a multitude of factors.
Archibald said the problem lies with supply and demand. There is a significant supply of homes thanks to increased home development.
On the demand side, Regina brought in thousands of immigrants over the years, but newcomers tend to rent first, he added.
“It’s certainly not indicative of longer term trend towards property value declines in this marketplace,” said Archibald.
According to Archibald, the number of listings in April reached a 10-year high, and the number of new listings coming out on the market have hit a 20-year high.
“So, you put both those together and you started to find more of a balance market taking place,” he said.
Merial Gordon and Loretta Sernowski, who have over 50 years of experience in the real estate industry between them, said they don’t feel the decline.
“We both have open houses. It’s been busy. There’s lots of buyers on the market. I had the best January-February I have ever had,” said Sernowski, a broker and owner for Exit Realty Fusion.
A decline may help a few people’s bottom lines.
“From a buyer’s perspective, if buyers are hearing that, ‘Wow, the prices are going down,’ then, that might bring out even more buyers,” said Gordon, a real estate agent for RE/MAX Joyce Tourney Realty.