The 2017 residential market got off to a reasonably good start when compared with 2016 and 2015, but was below long term averages based on sales and other indicators reported through the Regina and area MLS® System, said the Association of Regina REALTORS® Inc.
There were 168 sales reported during the month in all geographic areas, up 16% from 2016 when 145 sales were reported. The number of sales was below both the immediate past five-year average of 180 and the ten-year average of 194 for the month. There were 141 sales reported in the city, an increase of 15% from 2016 when 123 sales occurred.
For January, the MLS® Home Price Index (HPI), a much more accurate measure of housing price trends than average or median price, reported a composite residential price of $291,400 and index of 272 in the city, up 3.8% from $280,800 one year ago. This indicates that residential property values have risen slightly in Regina over the past year. The HPI measures residential price trends based on four benchmark home types, with the index set at a base of 100 for January 2005.
The average sales price in all market areas for the month was $297,532, down 4% from $309,242 recorded in 2016. The average in the city was $289,111, also down 5% from last year’s $304,488.
The higher number of sales contributed to an increase in the total dollar sales volume. Sales volume of $50.0M was posted in all geographic areas, up 11% from 2016’s $44.8M. Dollar volume in the city of $40.7M was up 9% from 2016’s $37.5M.
For all MLS® System geographic areas there were 1,593 active residential listings on the market at the end of January, down 3% from 2016’s 1,640. In the city there were 952 homes for sale, a decrease of 7.8% from last year’s 1,032.
There were 511 new listings placed on the MLS® System during the month in all geographic areas, up 6% from 2016’s 481. In the city 359 were posted, down 1% from 362 in 2016.
The ratio of firm sales to new listings for the month was 39% in the city and 33% in all geographic areas. These low sales to list ratios generally tend to point to buyer’s market conditions, however with a relatively low number of sales transactions occurring during the month, it would be premature to make that assessment. Balanced market conditions are generally in the 40-60% range – below 40% is considered to be a buyer’s market – above 60% is considered to be a market favouring sellers.
“We continued to see the trend which began in 2016 of active listing inventory decreasing in the city. This is contributing towards tightening supply particularly with single-family detached homes. There is an ample supply of condos with it accounting for about 30% of total active listings”, said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.
“On the demand side, we were pleased with the number of sales during the month. We’re off to a reasonably good start when compared to the last two years” concluded Archibald.
