As Saskatoon grapples with record-high numbers of listings, home prices in the city dipped slightly in the second quarter of 2017 and are expected to fall further over the next six months, according to a recent house price survey.
The aggregate price of a house in the city slipped 1.7 per cent, to $379,864, over the last three months, according to Royal LePage’s latest report, which was released Tuesday. That stands in contrast to the the national aggregate, which climbed 13.8 per cent to $609,144.
Broken out by category, the median price of a two-storey in Saskatoon fell 1.7 per cent, to $409,633, while the median price of a bungalow also slid 1.7 per cent, to $345,868. The survey did not include data for condominium prices in the city.
“Saskatoon’s residential real estate market continued to march onwards in the second quarter of 2017, producing sales figures that are on par with the same time last year,” Royal LePage Vidorra owner and broker Norm Fisher said in a statement.
“While inventory is at an all-time high, home prices have been supported by modest population and job growth, combined with continued low-interest rates.”
Royal LePage’s survey was released one day after the Bank of Canada, for the first time in seven years, hiked its benchmark interest rate, to 0.75 per cent from 0.5 per cent, amid expectations of stronger economic growth in 2017. The rate hike, which follows two small cuts made in 2015, is bound to raise the cost of mortgages, home equity lines of credit and other loans linked to the big bank prime rates.
The Saskatoon Region Association of Realtors (SRAR), meanwhile, reported last week that the median price of a home in the city slipped 0.9 per cent over the first six months of 2017, compared to the same period last year.
That means the median price for all homes in Saskatoon was $329,500 between January and June, compared to $332,500 in the first and second quarters of last year. Sales activity declined 2.5 per cent over the same period, according to SRAR.
SRAR CEO Jason Yochim said in a news release that there are more than 2,100 active listings in the city, with a sales-to-listings ratio of 31 per cent. In 2007, by comparison, there were only 375 active listings with a ratio of 79 per cent.
“This amount of active property also means that we are still firmly in a buyers’ market.”