January 2018 – Saskatoon Real Estate Market Update

January home sales in Saskatoon are off to a positive start in 2018. The number of transactions that occurred in Saskatoon was 203 units which represents an 11% increase over January of 2017. The five year average for January is 194 units. Last month’s sales activity also resulted in an increase in the overall dollar volume of 10.5% to $90,673,143 representing the highest dollar volume for January since 2014. Sales in the region surrounding Saskatoon, which includes the cities of Warman and Martensville showed a 27.5% increase with 65 transactions and an 11.7% increase in dollar volume at $18,049,600.

“While it is still very early in the year, the past three months have shown trends of increasing sales for Saskatoon, which is certainly a positive sign after many months of lower sales.” according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS® (SRAR) “It is good to see inventory levels shrinking as well which will help with upward pressure on pricing in time.” he adds.

The average and median home price in Saskatoon in January also increased. The average sale price for a home in Saskatoon was $344,771, up 1% from last January, while the median price increased by 4.1% to 330,000. Significant increases in the number of homes selling in the higher price ranges contributed to these upward pricing changes. Overall the number of sales between $400,000 and $1M increased by 45% with 64 sales. The number of homes that sold in January between $500,000 and $750,000 made up just over a third of the 64 transactions. The number of home sales between $200,000 and $300,000 remained strong and consistent with last January at 56 transactions. Many of these would be multi-family sales which helps to absorb inventory in that sector of the market.

The Home Price Index (HPI) composite benchmark value declined by 4.1% in January to $293,300, its lowest point since February of 2012. With the exception of a couple of months in the spring of last year, the HPI composite value has been in an overall decline since August of 2016 when the value was $317,600. “If inventory levels continue to decline due to absorption and fewer properties being listed, home prices should expect to see some increase later in the year.” predicts Yochim. The number of active listings in Saskatoon at the end of January was 1,529, the lowest level in the past three years for January and a 4% reduction from last year. This was aided by the increase in sales and a 14% decline in the number of new listings for January.

In April of 2018, the REALTORS® of Prince Albert will be joining forces with the Saskatoon Region Association of REALTORS® increasing the number of full members to nearly 700 licensed and knowledgeable REALTORS® who can provide sound market advice. This partnership will benefit home buyers and sellers through stronger government advocacy and access to tools and resources to our members to enhance their service to consumers. REALTORS® subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession. This is not the case for those who sell real estate in the province and who are not members of an association of REALTORS®.