SASKATOON – Home sales in Saskatoon were sluggish during September, according to the Saskatoon Region Association of Realtors (SRAR). Sales were off 16 per cent compared to a year ago and are down 12 per cent for the year.
Despite the drop in sales, SRAR CEO Jason Yochim was optimistic.
“We have to keep in perspective that 2014 was an exceptional year for real estate and these lower numbers are consistent with the five year average for sales,” he stated.
“We are actually doing quite well through the economic challenges when compared to some other western Canadian cities.”
But, he offered a word of caution.
“This is not a market for speculation and overpricing.”
READ MORE: New housing starts slow in Saskatoon: CMHC
SRAR said homes that sold in September were selling for just under 90 per cent of the asking price, the widest margin since August 2014. The percentage for the last couple of years has been in the low- to mid-90s.
The drop in sales compared to listings has tilted the landscape from a balanced to a buyer’s market, making it more challenging for sellers to see offers close to their asking price.
“It’s important to keep in mind that in any market, a properly priced home will sell in a short period of time for top dollar if it is priced right from the start,” said Yochim.
The average home sold for $353,587 but is expected to start declining slightly with slower sales.
Inventory levels remain elevated, with just over 2,000 properties available. Many are new homes and condo units and Yochim expects to “see vacant condo units hit the rental market.”
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