Royal LePage recently released the Q2 2016 Home Price Survey, which showed some interesting numbers. Single family homes are showing relatively flat pricing, while apartment style condo’s have decreased between 8-10%. This is consistent with what we are seeing at the local level, as well as with other sources of data, including CREA’s Home Price Index. We see the main reason for the softness in the condo market as oversupply. This should start to tighten up, as condo housing starts are down 35% compared to 2015.
The Saskatoon market ended June with approx 2,000 units for sale. This represents a small decrease in supply, but we are still carrying higher than average inventories. As a result, the average days to sell increased to 46, from 42 during June 2015. On the demand side, Saskatoon Realtors sold 8.2% fewer homes during the first 6 months of the year compared to last year.
Overall, our market seems to be weathering the economic downturn very well. This is especially true of the single family market, where prices have stayed pretty flat in the year-over-year stats. Housing starts have been on the decline for most of 2015 and 2016. When these decreases in supply are combined with strengthening economic factors, we will see a tighter market and a likely return to our normal periods of price appreciation. RBC’s latest economic outlook suggests a strengthening economy in 2017 fueled by strong agriculture and recovering oil prices. Until then, it seems to be a great time to buy with ample inventories and the market favoring the buyer in many categories. Check out the RBC outlook here:
If you’d like to know more about the Saskatoon Real Estate market or are interested in buying or selling, then contact our agent on duty. Or, contact Matt Miller, Broker (306-260-4720,email@example.com).