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Is momentum shifting in Saskatoon’s hot real estate market?

Watch above: is momentum in Saskatoon’s hot housing market shifting from sellers to buyers?

SASKATOON – Saskatoon’s economy remains strong which is translating to movement in the real estate market.

Experts say it is healthy and balanced but is the momentum still with the sellers or has it shifted to buyers?

“We saw inventory begin to build late last year, reaching some higher levels,” said Norm Fisher, the real estate manager at Royal LePage Saskatoon.

“In fact as we came through the second quarter of this year the number of homes available for sale on the multi-listing service reached its highest point since 2008, nearly 1,600 units by the end of the second quarter.”

For those selling the properties, the demand from buyers was there driven by continued population and job growth.

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“Our second quarter sales came in at nearly 1,500 units which is close to a record number of sales for a spring market in Saskatoon,” said Fisher.

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According to Fisher, a typical bungalow in Saskatoon increased by approximately 1.5 per cent over the last year, but it did slow down in the last quarter.

“Price growth over the second quarter of 2014 was some of the smallest price growth we’ve seen in quite some time actually.”

Higher inventory may be providing a bit of affordability relief.

“We’ve seen prices increase at the rate of greater than five per cent over the last five years, outpacing income growth and that’s not sustainable for any length of time,” said Fisher.

“I think we’re hitting some affordability ceilings there too.”

What hasn’t changed is the number of days a house should sit on the market especially among homes listed for less than $500,000. Experts say if house is priced properly will sell.

“It’s just a matter if it’s sitting for a couple weeks or more you know you might have to look at that price,” said Jason Yochim with the Saskatoon Region Association of Realtors.

It’s one of the reasons why they say you may want to work with an agent.

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“I think it’s important to have a professional that’s got experience, that knows not only what’s happening in the market right now but where the market is trending,” said Yochim.

“They have tools to enable them to know where the market is going so you can anticipate how you should price your house going forward.”

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