SASKATOON – House prices are expected to remain stable in Saskatoon in 2015 according to a report released Wednesday by Royal LePage. However, the price of oil and interest rates could impact that forecast.
“A prolonged depression in oil prices or a spike in interest rates are the biggest threats to the real estate market in the year ahead, as they could hurt the overall economy and labour market or affect the affordability of homes,” said Norm Fisher, a broker with Royal LePage in Saskatoon.
In 2014, the average price for a standard two-story home increased 5.9 per cent to $410,750 while the average condo rose 4.0 per cent to $275,333. The price of a detached bungalow, however, dropped 2.2 per cent to $359,000.
“The market as a whole has been clipping along with very strong demand, largely based on a robust local economy and positive employment picture,” said Fisher.
“Demand for two-storey homes has been especially strong in Saskatoon, including quite a few newly built properties, which is partially responsible for the significant increase in average prices in that category,” added Fisher.
Royal LePage says demands are expected to ease this year with moderate price appreciation. The report said there was a high level of inventory at the end of 2014, suggesting “a competitive environment for sellers in the year ahead.”