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House prices in Saskatoon continue to drop: Royal LePage

Saskatoon saw a 0.3 per cent decline in its fifth consecutive month of falling prices for new housing. Lower negotiated selling prices drove the change.
A Royal LePage report says Saskatoon housing prices continued to slide during the fourth quarter of 2017. File / Global News

Home prices in Saskatoon continued to fall during the last three months of 2017.

The aggregate price during the fourth quarter of 2017 dipped 2.2 per cent to $377,222 according to a report released Wednesday by Royal LePage.

The median price for a two-storey home decreased 0.4 per cent year-over-year to $410,819 while the median price of a bungalow dropped 4.6 per cent to $338,854. Condo prices were not released.

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Norm Fisher of Royal LePage Vidorra said high inventory levels impacted prices.

“The decrease in home prices that we saw in Saskatoon in the final quarter of the year comes down to a high level of available inventory, especially in the bungalow segment of the marker,” Fisher said in a release.

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“In recent month, we have seen a surplus of activity at price points below $350,000 that has boosted the market, but not enough to keep prices from sliding.”

Fisher added that low commodity prices is also affecting the housing market.

“When they are down, our housing market is impacted significantly,” Fisher stated.

“We have seen layoffs in the potash and uranium industries, keeping our unemployment rate above the national average.”

Fisher said improvements should be seen in the market, pointing to affordable prices for first-time buyers.

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