City home sales slide in August

While the price of homes and the number of houses on the market in the Saskatoon region continues to rise, home sales fell by 20 per cent in August, the Saskatoon Region Association of Realtors (SRAR) says.

In its August report, the association said 313 homes were purchased last month compared to 392 sales during the same month in 2009.

Year-to-date sales have also dropped, falling six per cent to 2,527 home purchases in the Saskatoon region between January and August. Over the same eight months last year, 2,696 homes were sold in the area.

The report’s author, SRAR executive officer Harry Janzen, wrote in the document residential sale numbers are expected to remain on-par or soften slightly during the remainder of 2010.

Favourable interest rates and confidence in the local economy, which help to maintain a stable housing market, remain in place, the report says.

The average price for a home in the region, meanwhile, rose by eight per cent last month on higher sales activity in the mid- to upper-price range, SRAR said.

At $305,866, August’s average sales price is more than $20,000 higher than the same month last year, when the average selling price was $282,320.

So far this year, the region has noted an average residential sale price of $292,323, a five per cent increase over the same period last year at $278,193.

The number of houses put up for sale in August rose 25 per cent from August 2009 to 645 properties from 517. So far this year, 5,033 homes have been listed on the market in the region.

At the end of August, prospective homebuyers had an inventory of 1,355 houses to choose from — a similar figure to the end of August 2009, when 1,334 homes were listed for sale.

In communities outside of the city, August home sales fell six per cent to 90 sales compared to 96 home purchases during the same month last year.

The average selling price for houses in Saskatoon’s bedroom communities also fell, dropping to $259,338 — a four per cent drop from the average price of $270,488 recorded in August 2009.

But like Saskatoon, the number of homes for sale in outlying areas also rose last month, rising 25 per cent to 248 listings from 199 in August 2009.