Activity picks up during July in Saskatoon’s real estate market

Sales activity picked up in Saskatoon’s real estate market during July, but total sales for the year remain down.

Saskatoon Region Association of Realtors (SRAR) said total sales for the month totaled 390 units, up from the 310 sold during July 2017.

SRAR CEO Jason Yochim said this is promising news for the market.

“Although one month does not constitute a trend, it is very encouraging to see such a significant increase in activity during a month when many buyers typically leave town on vacation,” Yochim said in a press release.

Year-to-date numbers for 2018 remain down 3.3 per cent compared to last year, with 2,152 transaction to the end of July.

Yochim said another positive indicator was a decline in the number of new listings for the month.

SRAR reported 710 new listings in July, down 10 per cent from a year ago, and below the five-year average of 830.

“Lower inventory levels will help move the market from a buyer’s market towards balance and stabilize home prices,” Yochim said.

The home price index (HPI) for a single-detached home inched downward in July, off 0.1 per cent from June to $315,400, while the HPI for townhouse-style residences continued to increase, up 1.2 per cent for the month to $234,400.

SRAR said HPI is a more accurate indicator of home prices than average prices, which the organization said can be misleading as a outlier sale can skew the average price.

The Saskatoon Regional Economic Development Authority (SREDA) reported earlier in the week new housing starts to the end of June numbered 616, a drop of 17.3 per cent from the first half of 2017.

SREDA expects demand for new homes will continue to be impacted by new mortgage rules and an anticipated increase to the interest rate.