We thought you might be interested in seeing how our real estate activity for the 1st seven months of the year has performed compared to previous years. (According to statistics provided by our Saskatchewan Realtors Association) Our June and July activity has been very strong compared to the first five months. Obviously and unfortunately March, April and May we're very much affected by the virus/ pandemic. On a positive note, that three month period reduced our inventory levels helping to result in a stronger market. August has also started off very strong indicating it is still an excellent time for sellers to get their properties sold. That being said, Property prices/market values are the major motivating factor for buyers as well as extremely low Interest Rates: A perfect time to purchase a home.
Building off the strong performance seen in June, the real estate sector continues to show signs of resilience. Across the province, year-over-year sales were up over 56% from July of last year (and up over 9% year-to-date), new listings were up over 9% year-over-year (but down 11% year-to-date), and the median sale price was up 2.7% (down 0.9% year-to-date). Inventories were also down in all markets that the SRA tracks, suggesting that people are still eager to buy and take advantage of the opportunities that exist.
Although prices are down in some markets (reflecting the local nature of real estate), the number of sales were up in all markets that the SRA tracks, and the number of new listings were up in all but one. Again, this suggests that the sector is doing quite well despite the impact the pandemic has had on the province, and that the sector has recovered in two to three months.
The strong performance seen in June and July (supported by increasing confidence in the real estate sector) is promising for August as well. “Members are still receiving multiple offers and some properties continue to be sold almost as soon as they’re listed,” says Yochim*, suggesting that there is still pent-up demand. As a result, would-be sellers may be encouraged to list and help ease the declining inventory burden. And with children scheduled to return to school in September, August could see another strong push before life gets back to “normal” and Saskatchewan Real Estate activity begins its cyclical slow down.
*Saskatchewan Realtors Association (SRA) CEO Jason Yochim
Below are Regina statistics comparing activity for the month of July.
Sales in Regina were up 51.2%, going from 254 in July 2019 to 384 in July 2020, and up 57.8% in the overall region, going from 308 to 486. In Regina, sales were 40.1% above the 5-year average (and 33.8% above the 10-year average), while in the larger region, sales were 42.8% above the 5-year average (and 38.7% above the 10-year average). Year-to-Date (YTD) sales in Regina rose 0.6% over last year, increasing from 1,604 to 1,613, while YTD sales in the larger region rose 6.1%, going from 1,889 to 2,004.
Sales volume was up 58.4% in the city, going from $76.3M to $120.9M in 2020 (40.0% above the 5-year average, and 33.4% above the 10-year average). YTD sales volume in the city was $491.7M, an increase of 1.1% from last year. In the region, sales volume was up 7.3%, going from $568.0M to $609.5M (40.4% above the 5-year average and 36.1% above the 10-year average). YTD sales volume increased 7.3% in the region, rising from $568.0M in 2019 to $609.5M in 2020.
In Regina, the number of new listings in July 2020 rose 10.6%, going from 502 to 555 (14.3% above the 5-year average and 11.9% above the 10-year average), while in the region, new listings rose 7.6% from 645 last year to 694 this year (12.7% below the 5-year average and 10.7% above the 10-year average). YTD new listings in the city fell 10.9%, going from 3,428 to 3,055, while in the larger region, the number of new listings to date fell 11.4%, going from 4,401 to 3,900. Active listings fell 20.6% in Regina (down from 1,655 to 1,314) and fell 24.3% in the region (down from 2,390 to 1,809).
Inventory in Regina stood at 3 (which is 47.5% below the level last year and 40.4% below the 5-year average), while the sales to listing ratio was 69.2%, suggesting that market conditions favour sellers. Inventory in the larger region stood at 4 (which is 52.0% below the level last year and 44.5% below the 5-year average), while the sales to listing ratio was 70.0%, suggesting that market conditions favour sellers.
Homes in Regina stayed on the market an average of 48 days in July—down 11.1% from 54 days last year (but below the 5-year average of 49 days and above the 10-year average of 41 days). Homes in the region stayed on the market longer than homes in the city at 55 days on average in 2020, but also down from an average of 59 days last year (and 2.2% above the 5-year average).
Median home prices in Regina went from $277,500 to $300,000 (an increase of 8.1%) and were approximately 0.5% above the 5-year and 0.2% below the 10-year average median price.
The MLS® Home Price Index (HPI) – a more accurate measure of house price trends: is up 3.1% from $276,000 to $284,500. Year-to-date, the median home price in Regina was $289,632 which is 1.3% above the $285,993 price from the same time last year.
Median home prices in the region went from $276,750 to $290,000 (an increase of 4.8%) and were approximately 1.2% below the 5-year and 2.0% below the 10-year average median price. Year-to-date, the median home price in the region was $287,714 which is 1.4% above the $283,836 price from the same time last year.