Saskatoon prices likely to enter a period of relative stability

Relatively static demand and inventory to characterize the market for much of the coming quarter

Saskatoon prices likely to enter a period of relative stability

Despite a small decrease during the first quarter of the year, Saskatoon’s home prices are expected to remain stable this year amid relatively flat demand and inventory.

According to the latest Royal LePage House Price Survey, the aggregate housing price in the city fell by 1% year-over-year in Q1 2019, down to $368,665.

By housing type, the median price of bungalows shrunk by 3.3% annually to $326,943. Two-storey homes saw a 0.8% increase to $405,253.

“Year-over-year inventory levels are decreasing but still remain healthy,” Royal LePage Saskatoon Real Estate broker and owner Matt Miller said. “Demand is flat in the region, but the decline in supply will keep prices stable.”

Miller also predicted a gradual increase in sales into the summer, with further demand to be likely stimulated by the federal government’s shared equity mortgage initiative.

“While details of the plan will not be released until September 2019, if it helps potential homebuyers access the market, we should see an uptick in demand,” Miller stated.

Slowdowns in overall sales and price growth would likely be the main feature of the national market this year, Royal LePage cautioned in its report.

“We are expecting this to be a sluggish year overall in Canada’s residential real estate market, with the hangover from the 2018 market correction and weaker economic growth acting as a drag on home price appreciation, balanced by lower for longer interest rates,” Royal LePage president and CEO Phil Soper explained.