The Saskatoon Real Estate market ended the year much like it started, with relatively high inventories and buyer’s market conditions. Total home sales for the year were 3,491 units, which represents a 5% decline compared to 2016. Single family home prices in Saskatoon were fairly slow to react to market conditions through 2016, but have since adjusted in the past 12 months. We saw average prices decline through the year, with the CREA home price index showing a 12 month decrease of approx 4%.
Looking forward, these price changes may actually be a good thing in returning to a more balanced market. Price changes, upward or downward, are a normal market function resulting from changes in supply and demand. In Saskatoon, we have seen decreases in demand through the previous few years, and inventories have remained high. So, prices have moved downward, but we expect lower prices to also help drive more demand.
Looking forward, it can be helpful to focus on economic forecasts to predict what may happen in the Real Estate market. The RBC Economic Outlook from December 2017 is predicting strong economic growth for Canada and Saskatchewan. In fact, Saskatchewan is expected to show a return to economic growth once the 2017 numbers are in, and forecast to lead the country in Real GDP growth at 2.7% due to strengthening Agriculture, Energy, and Potash markets (http://www.rbc.com/newsroom/reports/rbc-economic-outlook.html). Improvements in our economy should help the demand side of the equation by driving growth in incomes, jobs, and population.
With high inventories and lower prices, we are seeing market conditions that favour the buyer. While this is good news for buyers, for sellers it means there is more competition. The right mix of marketing, presentation, and pricing is vital in this market. The wrong mix only helps to sell the competing properties.
Wishing you all the best in 2018. Should you have any questions about Saskatoon Real Estate, please contact our Agent on Duty, or Matt Miller, Broker (firstname.lastname@example.org, 306-260-4720).