Affordability driving Saskatoon’s housing market: Royal LePage

Royal LePage says condo and townhouse sales have rebound as the Saskatoon housing market moves towards a balanced market. File / Global News

Housing prices in Saskatoon dropped during the third quarter of 2019, but there are signs of stability in the market, Royal LePage said Thursday.

The company said in its house price survey that the average aggregate price of a home fell two per cent year-over-year to $357,979.

READ MORE: Saskatoon housing market surges in September

Norm Fisher said the city’s market continues to show signs of recovery.

“We have moved towards a balanced market as buyers are responding to the affordability of entry-level units in the area,” said Fisher, the owner of Royal LePage Vidorra in Saskatoon.

“This will be the first year in (the last) five that we’re actually going to record an increase in sales numbers.”

Story continues below advertisement

Fisher said sales in townhouses and apartment-style condos, which lead the downturn in 2014, have rebounded.

“We’ve seen a remarkable improvement in both of those categories this year,” Fisher said.

“Condo sales are up seven per cent year-over-year, and townhomes are up over 16 per cent.”

Fisher said prices for those categories are very modest, but up from a year ago.

“The condo market has fallen 25 to 30 per cent and buyers are now at a point where they’re feeling like the prices are reasonable and they’re responding to that,” he said.

“That’s why we’re seeing the spike in demand in those two categories.”

READ MORE: Sask. building permit values surge, but market still ‘under-performing’

Also of concern to Fisher is the impact of the PST on new home sales.

“I think the one factor that’s having the greatest impact on the market right now is the PST on new housing that was implemented in April of 2018,” Fisher said.

“It’s really having a devastating impact on the new housing market, which is down about 20 per cent this year over last year.”

Story continues below advertisement
Click to play video 'Housing report predicts Saskatoon, Regina homes to drop in value' Housing report predicts Saskatoon, Regina homes to drop in value
Housing report predicts Saskatoon, Regina homes to drop in value – May 21, 2019

In the report, Royal LePage said the median price of a two-storey home during the third quarter decreased 4.3 per cent year-over-year to $387,830.

Bungalows prices rose slightly during the same period, up 0.9 per cent to $334,087, Royal LePage said.