SASKATOON – Home sales in Saskatoon have been sluggish during the fall season, according to the Saskatoon Region Association of Realtors. Compared to last year, sales are down 16 per cent and this dip was reflected in low attendance at the Home Show in Prairieland Park.
“We’re seeing a bit of the ripple effect too. With the economy going down, the show seems a lot slower than usual. It’s not as big. We’re still promoting the products and getting them out there,” said Soak co-owner Scott Howsam.
READ MORE: Saskatoon home sales sluggish in September
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Lower energy prices in the oil and gas industry have lead to a downturn in job growth which has led to a slump in housing prices. The Canadian Mortgage and Housing Corporation (CMHC) predicts the economic uncertainty will continue to lower resale transactions, construction in the market and net migration to Saskatchewan.
“The demand in Saskatchewan has slowed down quite a bit … builders aren’t building as many new homes,” said Home Show producer Rick Young.
On the positive side, renovations are expected to increase as an alternative to buying a new home. A focus on upgrading to more sustainable and efficient products is trending.
“We think this spike in renovations is quite a high potential. People are going to think about renovations before they buy a new home,” says Young.
The CMHC’s last report said new housing will continue to decline through the year due to a weak economy and rising inventory. However, late 2016 may see a slight increase in the resale market.
The CMHC is expected to release its fourth-quarter outlook by the end of October.
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