Here’s what’s new in Saskatoon’s real estate world.
422 homes were purchased in May that number 14% lower than May 2014 when 493 homes were purchased. The average selling price was $363,297.00 that number 2% higher than in May 2014 when the average was $356,843.00. The average price year to date is $351,787.00 on par with 2014 when the average was $354,864.00. The average number of days to sell a property in May was 45 days indicating a slower market and reduction of sales. Unit sales year to date are 15% lower than 2014 while the number of units listed is up by 10%. REALTORS® listed 986 residential properties in May that number up from the 946 listings in May last year. Year to date listing numbers are 4,203 listings, 10% higher than the 3,807 listed in 2014. A certain percentage of these listings were previously listed properties that failed to sell as a result of being overpriced, which were then relisted at a lower price in order to bring them closer to market value. Home buyers had 2,015 homes to select from at the end of the month which calculates out to be approximately 5 months of inventory.
Residential sales activity in communities around Saskatoon was 5% lower than in May 2015. 149 homes were purchased in May as compared to 157 being purchased in May 2014. The average selling price was up 7% at $318,144. Year to date 1,570 properties have been listed in these areas around Saskatoon, this number indicates a 10% increase from the 1,423 property listings in 2014. At the end of May 2015 there were 1,150 active listings in these areas around Saskatoon, 14% higher than May 2014.
Inventory continues to remain high in our market due to a 10% increase in listings and a 15% reduction in home sales year to date. Combined these two factors have created an overall increase in inventory levels of 29%. The sales to listing ratio at the end of May was 43%, trending towards a balanced market. In spite of the rising inventory and declining sales, the average price remains virtually unchanged. As summer approaches it is expected that prices will start to decrease slightly overall. This assumption would be based upon inventory levels continuing to remain high and sales decreasing slightly from the spring market activity levels as they traditionally do. Home buyers currently have an upper hand in negotiations thanks to the large selection of homes available for sale. New construction appears to have cooled off with a significant decrease in the number of permits issued in 2015 compared to last year. As of the end of April, 268 permits were issued for single family homes compared to 466 for the same period in 2014. Buyers are more educated today than ever before and will not move on a home that is overpriced, particularly when we have more active listings than ever before in our MLS history.