September 2019 Real Estate Market Update

AUGUST SALES UP OVER 2018 BUT BELOW LONG-TERM AVERAGES

Based on activity through the Regina and area MLS® System, homes sales in August exceeded 2018 levels, but were below long-term averages, said the Association of Regina REALTORS® Inc.

There were 314 sales reported during the month in all geographic areas, up 3.0% from 2018 when 305 sales were posted. Sales were well below the 5-year average of 347 and 10-year average of 354 sales. There were 247 sales reported in the city, down 0.4% from 2018 when 248 were posted. The number of sales in the city are also below the 5-year average of 277 and 10-year average of 289.

For the year-to-date, 2,216 homes have been sold in all areas, up 1.0% over last year’s 2,195. In the city, 1,833 sales have been posted, up 4.0% from 2018’s 1,762.

For August, 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 $267,900 and index of 245.9 in the city, down 3.9% from $278,700 one year ago. This reflects a general downward trend, indicating downward pressure on home prices due predominately to elevated supply levels and lower levels of demand. The Composite Benchmark Price is down 10.5% from three years ago and 9.4% from five years ago. The HPI measures residential price trends based on four benchmark home types, with the index set at a base of 100 for January 2005.

Total dollar sales volume in all areas was $94.7M, an increase of 1.8% from 2018’s $93.0M. Year-to date dollar volume of $665.0M is down 1.0% from 2018’s $671.0M.

In the city, there were 1,560 active residential listings for sale on the market at the end of August, down from 1750 one year ago.

There were 549 new listings placed on the MLS® System during the month in all geographic areas, a decrease of 15.9% from 653 last year. For the year-to-date, new listings of 4,990 are down 9.9% from 5,540 in 2018. There were 437 listings posted in the city, compared to 513 last year – a decrease of 14.8%. Year-to-date, new listings in the city are down 10.0 % at 3,825 this year compared to 4,250 in 2018.

The ratio of sales to new listings for the month was 56% in the city and 57% 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. We caution that this would need to persist for several more months before the market would be considered to be in balance.

“Economic factors and federal mortgage stress rules have had a continued dampening effect on

demand for housing. Sellers are well advised to set their asking price for these market conditions, otherwise there is a risk of no showings or offers,” said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.

“Looking ahead, both projected economic and job growth in the local area are encouraging. This should translate into an uptick in demand and sales. There has been no better time for a buyer to purchase a home – there’s plenty of choice and prices are at their lowest level in many years” concluded Archibald.

From: ASSOCIATION OF REGINA REALTORS® INC.