Home prices fell on a year-over-year basis in Regina and Saskatoon in October, while nearly all other major markets posted increases, the Canadian Real Estate Association says.
The Multiple Listing Service home price index dropped 3.39 per cent in Regina and 0.43 per cent in Saskatoon, while the national aggregate rose 5.51 per cent.
The association’s chief economist, Gregory Klump, noted that the home price index for Regina has declined every month so far this year due to a buildup of inventory.
“Price reflects the balance between supply and demand, and Saskatoon and Regina had a big buildup of inventory by comparison to the sales that were taking place,” Klump said.
"You’ve got a large overhang of inventory, which is being worked down by sales, so there are better times ahead, but right now that is not positive on price.”
The average MLS sale price was $331,161 in Regina and $349,322 in Saskatoon. That’s higher than the provincial average of $306,812, but below the national average of $419,699.
Sales through the MLS system were down 10.4 per cent in Regina and 2.5 per cent in Saskatoon compared to the previous month.
On a provincial basis, sales declined 6.7 per cent to 1,202 in the same period and nationally, they increased 0.9 per cent to 44,475.
There were 631 new listings in Regina in October, up 13.3 per cent from a year earlier. Meanwhile, the number of new listings in Saskatoon climbed 8.8 per cent to 1,663.
Klump predicts prices will remain sluggish in both cities as long as there’s still a glut of available homes on the market.
“What’s eventually going to happen is that people who put their home on the market and are not getting the price that they want are either going to take it off the market or drop their price,” Klump said.
“As people drop their price, and as the sales start mopping up new listings, the prospects for prices improve. But it takes time.”
