“This decrease in listing activity could be the result of seller’s fatigue from having been on the market for an extended time period without securing an offer.” according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® (SRAR) “The increase in December sales and decline in new listings is a positive for decreasing high inventory levels” he adds.
The year to date story for 2017 however is one that indicates a slower market overall when compared to 2016. The overall sales volume recorded by the SRAR was just short of $1.6 Billion for the year representing a 9% decrease from 2016. This is the third straight year of decline since the $2.1 Billion market peak realized in 2014. Home sales of 3,491 units in Saskatoon for 2017 represented a 5% decline from 2016. This is significantly lower than the five year average of 3,957 sales. In 2017 there was a total of 8,972 homes listed for sale in the Saskatoon market representing a 3% decline from the year previous. The sales-to-listing ratio for the year was 35%, which is a ratio of the number of sales for the year when compared to the number of new listings. In other words, roughly a third of the homes listed for sale ended up actually selling. The number of days on market for a home in Saskatoon in December was 61. This was a sharp increase from 51 in December of 2016 as well as the five year average of 52 days.
Not surprisingly, with lower sales and still a large inventory of homes to choose from, home prices continued to see downward pressure. The median price for a home in Saskatoon declined by 3.3% in December to $324,000 while the average price showed a half point decline to $339,520 for the month. The Home Price Index (HPI) composite benchmark value declined by 3.7% in December to $295,100, its lowest point since March of 2012. The HPI composite value has been in an overall decline since August of 2016 when the value was $317,600.
“Successfully selling a home in this current market requires more than information” comments Yochim “Sellers need the guidance to understand how historical sales data impacts their pricing decision.”
As a member of the Saskatoon Region Association of REALTORS® I can provide my clients sound market advice. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.