The Saskatoon real estate market has been cooling off for some time, and that trend seems to be continuing as we move into the latter half of 2017. While there have certainly been year-over-year declines on a monthly basis, it is also possible to observe more dramatic cooling off patterns by looking at the year-to-date sales. While this has been happening, listings in the city have continued to increase at a rate that outpaces the sales figures, due in part to overbuilding in the condo and townhouse markets in the city.
The year-over-year sales decline for the month of September hit 19%. There were only 262 homes sold in the month. While the year-to-date drop hasn’t been as large, it is still quite significant at 6%. Through to the end of September 2017, 2,935 homes sold in the Saskatoon area.
Inventory Levels Indicating a Buyer’s Market in Saskatoon
The primary determination used to assess whether a given real estate market is a seller’s or a buyer’s market is typically the sales-to-listing ratio. When the ratio falls under the 40% threshold, the market is typically considered to have shifted in favor of the buyers. In Saskatoon, the average ratio over the past five years is 42%, but at the end of September 2017, that figure was somewhat lower at 34%.
Prices in Saskatoon Dropping as Buyer’s Market Settles In
Although prices in Canada have been quite resistant to downward trends over the last several years, buyers are now starting to see average prices in Saskatoon declining. The excess inventory is starting to cause downward pressure on pricing, and sellers are being forced to price their homes more competitively if they are motivated to make the sale. The average sale price in September was $347,032 in Saskatoon.
Overall, conditions in Saskatoon are favorable for those looking to purchase a home at present. It is possible that these conditions may fluctuate over the coming months, however. Tightening mortgage rules that will be coming into place at the start of 2018 may drive an increase in activity as potential buyers seek to take advantage of the current market and financing rules. Any shifts of this kind are likely to be temporary in nature, however. The larger picture of the Saskatoon real estate market will likely not come into focus until we enter the new year and the new rules are firmly in place.
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