November 2019 Real Estate Market Update
OCTOBER SALES STEADY, PRICES FALL
Based on activity through the Regina and area MLS® System, homes sales in October were in line with sales for the past two years but still below long-term averages, said the Association of Regina REALTORS® Inc.
There were 256 sales reported during the month in all geographic areas, up from 255 in 2018 and the same in 2017. This compared to the 5-year average of 274 and 10-year average of 291 sales. There were 203 sales reported in the city, a decrease of 5.6% from 2018 when 215 were recorded. The number of sales in the city was below the 5-year average of 229 and 10-year average of 248.
Year-to-date, 2,778 homes have been sold in all areas, up 3.4% over last year’s 2,686. In the city, 2,289 sales have been posted, up 5.4% from 2018’s 2,172.
For October, the MLS® Home Price Index (HPI), a much more accurate measure of housing price trends than average or median price, reported a Composite Benchmark Price of $259,900 and index of 238.5 in the city, down 6.8% from $278,700 one year ago. This reflects a general downward trend, indicating downward pressure on home prices due to the combination of less demand for economic reasons and the federal mortgage stress test which has taken many buyers out of the market. The Composite HPI Benchmark Price is down 12.6% from three years ago and 11.5% from five years ago.
The HPI Composite price is now at its lowest since being adopted by the association in 2012.
Total dollar sales volume in all areas was $77.4M, an increase of 4.1% from 2018’s $74.3M. Year-todate dollar volume of $839.0M is now up 2.7% from 2018’s $816.6M.
In the city, there were 1,395 active residential listings for sale on the market at the end of October, down from 1,594 one year ago.
There were 482 new listings placed on the MLS® System during the month in all geographic areas, a decrease of 10.2% from 537 last year. Year-to-date, new listings of 5,973 are down 9.2% from 6,578 in 2018. There were 383 listings posted in the city, compared to 438 last year – a decrease of 12.6%. Year-to-date, new listings in the city are down 10.0 % - 4,577 this year compared to 5,088 in 2018.
The ratio of sales to new listings for the month was 53% in the city and the same in all geographic areas. Balanced market conditions are generally in the 40-60% range – below 40% is considered to be more of a buyer’s market - above 60% is considered to be a market favouring sellers.
“The market continued to chug along in October albeit at a lower level than long-term averages. Demand has been affected all year by economic factors and the federal mortgage stress test which has put many potential buyers on the sidelines. The mortgage stress test, primarily implemented to cool overheated markets in B.C. and Ontario, has had a devastating impact on the local market. It was not needed here,” said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.
“Sellers are well advised to set their asking price for these conditions. Buyers are advised to make sure they qualify for mortgage financing and are reminded that prices are at their lowest level in many years, and that there is plenty of choice in the market,” concluded Archibald.
From: ASSOCIATION OF REGINA REALTORS® INC.