The month of October closed with some positives for Saskatoon’s housing market, as sales were up by 8% compared to October 2015. The big news for the month was changing mortgage rules that essentially reduced the size of mortgage that some buyers can qualify for. This created a bit of urgency for some buyers to get a home purchased before the rules changed on October 17th. This was certainly a contributor to the strong results in October.
Inventory also tightened during the month, which should help support overall prices. We saw the number of available homes decrease to 1,745 from a peak earlier in the year that was in excess of 2,000. Current inventories are still above the 5 year average, but we see tightening supply as a positive, since it can bring some balance back to the market.
On the pricing side of things, the CREA home price index showed an overall decline of .86% compared to September, and a decrease of 1.2% for the past 12 months. These numbers reflect the composite of all housing types in Saskatoon. When we look at specific property types, the story is a bit different. Single family home prices (detached) have shown more resiliency than apartment styles condos. The price of a single family home has only decreased by .69% in the past 12 months, while apartment condos are down 5.25%.
Looking forward, we suspect that November will show the typical seasonal softening we tend to experience as winter approaches. We also expect some short term decrease in sales as the mortgage changes advanced some demand into October.
It is important to remember that these are overall numbers for Saskatoon, and that your specific situation may look quite different. If you are interested in buying, selling, or just looking for market info, please contact our Agent on Duty, or Matt Miller, Broker (306-260-4720, firstname.lastname@example.org).