Residential market slump continues for third year

Residential market fell nine per cent in 2017, says SRAR

A late-year bump was not enough to offset an overall decline in Saskatoon’s residential real estate market, which fell nine per cent to just under $1.6 billion in 2017, according to the Saskatoon Region Association of Realtors (SRAR).

Last year marked the third consecutive 12-month period of declining sales after the city’s real estate market peaked at $2.1 billion in 2014, the association reported on Tuesday.

The total number of houses and condominiums sold last year declined five per cent from 2016, to 3,491 units. SRAR said that figure is “significantly lower” than the five-year average of 3,957 sales.

“Not surprisingly, with lower sales and still a large inventory of homes to choose from, home prices continued to see downward pressure,” the association said in a news release on Tuesday.

The home price index, a measurement designed to eliminate monthly fluctuations and therefore volatility, fell 3.7 per cent to $295,100 in December, its lowest level since March 2012.

“Successfully selling a home in this current market requires more than information,” SRAR chief executive Jason Yochim said.

“Sellers need the guidance to understand how historical sales data impacts their pricing decision.”

Yochim attributed an 18-percent decline in new listings last month to sellers’ fatigue from having been on the market for an extended period without an offer.

At the same time, he continued, it should help decrease high inventory levels.