Saskatoon remains a buyer’s market as slow economic growth, falling demand, and high inventory levels impact the real estate market.
Royal LePage reported Tuesday the aggregate home price declined 2.5 per cent in the third quarter of 2018 when compared to the same period last year.
“Saskatoon’s housing market peaked in 2014, and we’ve seen a pretty consistent slowdown in the quarters since,” stated Matt Miller, a broker and owner of Royal LePage Saskatoon Real Estate.
Miller said mortgage stress rules and rising interest rates also played a factor in declining home values.
“Slumping commodity prices have hurt the economy, and when you combine that with the new mortgage stress test rules and rising interest rates, we’ve seen less demand and higher levels of inventory,” Miller said.
“It’s a buyer’s market.”
The median price of a two-storey home fell 3.0 per cent to $398,260, and the median price of a bungalow declined 1.7 per cent to $337,057.
Royal LePage expects sales activity and prices to slow in the last three months of 2018 as the market heads into the slower winter season.