This month’s article is a summary of the Saskatchewan Real Estate Market Conditions to keep readers informed, and to help gain awareness of the contributing factors that impact our market. One factor that has proven to be a common denominator is new home starts. The production of new, multi-family projects, along with single family homes truly is a “numbers game,” which plays a major role in our market conditions. The basic economics of supply and demand should be taken into account for any real estate market at any time.
Over-production can easily trigger an imbalance in listing to sales ratios, regardless of the overall market conditions. Any form of mass real estate production will always be a gamble depending on the current need for that specific product; this cannot always be properly predicted.
This is an especially sensitive time in the Saskatchewan Real Estate Market, as it will take time for consumer confidence to be regained after we have seen, at times, volatile market conditions throughout the year.
It will also be interesting to see what kind of impact the new mortgage test that was implemented in October this year will do to the market conditions. This was a nation-wide change that will affect all Real Estate and Mortgage markets in the country. An additional update to note is The Canadian Mortgage and Housing Corporation (CMHC) has issued a red flag on overbuilding in Regina. This can be seen as a positive decision that has been enforced. I am hopeful this will contribute to balancing out our market and providing a more stable forecast for the upcoming
In regards to Regina Real Estate stats; our year to date residential sales have been recorded at 2803 sales in all areas. This is a4% increase in comparison to 2696 ends in 2015. The average sales price for all market areas for the month was $308,824, which is an increase of 1% from $305,395 average sale price last year. By the end of October there were 1107 homes for sale; this is down from the 1237 listings at the same time last year. As for the Saskatoon market, home sales were 8% higher than the recorded sales for October of 2015.
To conclude this article, I would like to welcome anyone wanting more information regarding the Residential Real Estate Market to contact me for further explanation. I’d also like to mention a change in my brokerage as I have recently decided to join The Craig Adam Team at Re/Max Crown Real Estate. Our team is happy to provide assistance in the process of buying or selling a home, do not hesitate to contact us!