The latest Royal LePage House Price Survey and Market Survey Forecast reported that the Saskatoon housing market is currently characterized by widespread caution among home buyers, which has led to below average sales levels.
The study attributed the market’s reticence to prevailing economic factors along with increasingly restrictive OSFI mortgage regulations.
“For the last few years, Saskatoon’s real estate market has been impacted by the downturn in commodity prices,” Royal LePage Saskatoon Real Estate broker and owner Matt Miller said. “While home values have remained somewhat resilient, sales activity and inventory have both seen a decline. The introduction of a new stress test has tempered activity further.”
Fortunately, “this was partially offset by lower inventory levels, which kept home values from decreasing further,” the Royal LePage report added.
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As of the second quarter of 2018, the overall aggregate home price in Saskatoon fell by 1.9% year-over-year (down to $370,927). The median price of a two-storey home in the market declined by 1.7% annually (down to $400,804), while the median price of a bungalow shrunk by 2.2% in the same time frame (down to $336,776).
“Over the next three months, Saskatoon’s sales activity and inventory within the region are expected to trend closely to 2017 levels as the market enters its peak season, yet property values will likely remain relatively unchanged,” Royal LePage predicted.
On the national level, price appreciation slowed to a relative crawl in Q2 2018, a development influenced mainly by what was characterized as “softness” in the Greater Toronto Area, where many markets have suffered year-over-year declines in home prices.
Saskatoon market edging closer to balanced conditions – report