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First Quarter Sees Prices Drop Gradually in Saskatoon Real Estate Market

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First Quarter Sees Prices Drop Gradually in Saskatoon Real Estate Market
2 min. read

The Saskatoon real estate market, part of the Saskatchewan real estate market, slowed down ever so slightly over the first quarter of 2017. The city has been the site of a large amount of over-building, especially in the Saskatoon condos market, for well over a year now. The excess of available options coupled with a cooling economy in the Prairie Provinces is having a slightly downward effect on home sales and prices.

Photo Credit: KevinTeague via Wikimedia Commons

Overall sales figures in Saskatoon dropped six percent over the first quarter. This wasn’t unexpected given the trends in Saskatoon over the last year, especially given the abundance of inventory in the city. However, the particular blend of conditions is now forming a market that is slightly more favorable to buyers than was the case over most of the last several years.

High Inventory a Key Factor in Saskatoon

As already mentioned, the high levels of inventory in Saskatoon are a key factor in the decline in pricing in the city. The average number of homes available in Saskatoon is currently slightly above 2,000, while the five-year average is much lower, at 1,633.

Another telling figure is that, over that five-year period, the average number of days to sell a home in the city was 37. That figure has now increased to 45. This is due to a number of factors, including the glut of inventory and the fact that sellers are not adapting their asking prices to reflect the current sale prices of homes in the city.

Pricing Down Slightly, But Further Drops Possible

Overall, the average sale price of a home in Saskatoon declined 2% over the first quarter of the year to land at $346,371. The average house is selling for 97% of the original asking price. This is good news for buyers looking to land a deal, as it appears that there is some flexibility in the pricing of the average home in Saskatoon at the moment.

Saskatoon is a market with lots of flexibility right now. While deals are available, with a wide selection for buyers, the market price hasn’t dipped so much as to cause sellers to hold off on listing their properties. Patience is the watchword for buyers at the moment, as with a little careful negotiating and some diligent shopping for the best option, there are some homes available at excellent value for money in Saskatoon at present.

 

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