SRAR: Market Activity Continues to be Strong in March

March 2012's stats are out for Saskatoon's real estate market.

From SRAR

“The Saskatoon market place experienced a 14% increase in the number of sales year to date when compared to the first quarter of 2011”, reports Jason Yochim, the Executive Officer of the Saskatoon Region Association of REALTORS® (SRAR) today. At the same time the number of new listings was down 2% YTD when compared to 2011. “The total number of listings available in Saskatoon at the end of March was 1,053 a decrease of 66 units from the same time a year ago”.  

“Sales in all price ranges were strong with the greatest activity occurring in homes priced over $350,000.00 where sales were up 140% YTD over 2011. Sales in the $450,000.00 to $500,000.00 price range increased 243% compared to last March.” said Yochim. “The average year to date sale price in Saskatoon continues to rise, increasing by 9% to $318,946.00 while the median sale price was $309,900.00.”

The average sale price is determined by dividing the total dollar volume of sales by the total number of units sold and is an average across the market. Changes in the average sale price will vary depending on the specifics of a particular property such as style, condition, location and size. “In an active market like this it is advisable to contact a professional REALTOR® for an accurate determination of price” says Yochim.

The market continues to remain in balanced territory in Saskatoon with a sales-to-listing ratio of 54%, according to Yochim, “Although the market is in balanced territory the strong demand for housing is putting upward pressure on pricing. This increase in the average sale price should remain in the 5 – 10% range as we approach spring when we traditionally see an increase in the number of listings”, Yochim summarized.

The Saskatoon Region Association of REALTORS® represents over 570 professionally licensed and trained REALTORS® in the Saskatoon region. SRAR is dedicated to developing professional standards and competence in the real estate profession, ensuring the highest quality of information and service to the buyers and sellers of residential and commercial properties in the Saskatoon area.

Hmmm... no mention about how the increase in mortgage debt has lead to an increases in house prices.  To get a 5-10% increase in house prices without the corresponding increase in wages, we will need an increase in mortgage debt growth.  An increase in year over year mortgage debt growth in Saskatchewan should easily get the 10% increase in house prices in Saskatoon.

Maybe we will have a wage boom one of these years.  Saskatoon's average weekly wage increased 14% from Jan 2008 to Dec 2011.  Keeping up to house prices? Uh no, we are keeping pace with inflation, at least I hope :)