Real estate in Regina has demonstrated a weak housing market in 2018. Though residential sales for June of 2018 don’t match June 2017’s number, it was a stronger month for home sales. Dozens of factors are currently playing into the downturn of our housing market here in Regina. The government, lack of jobs, mortgage changes & constant rate increases. It’s no wonder we’re struggling. BUT Saskatchewan has always been a tenacious little province and the June numbers prove that.
“Number of home sales still down, 12.3% decrease in new listing’s & hints of a more balanced market.”
There were 361 sales recorded during the month in all geographic areas (Regina, White City, Emerald Park, Pilot Butte, Balgonie, Grand Coulee, Pense), down 1.9% from last year when 368 sales occurred. Although June marked the first time this year that there were two consecutive months with sales exceeding the 360 mark, it was below both the 5-year average of 398 and a 10-year average of 385. There were 284 sales recorded in the city, a decrease of 2.1% from 2017 when 290 sales occurred.
For the June year-to-date there have been 1,571 sales recorded in all areas (Regina & surrounding towns, not including Moosejaw.), a decrease of 5.4% from 1,660 in 2017. In the city, there have been 1,274 sales compared to 1,362 last year, down 6.5%.
For June, the MLS® Home Price Index (HPI), reported a composite benchmark residential price of $279,700, down 6.1% from $297,800 one year ago. This was up slightly from May’s $276,500 but continues with the price loss trend we’ve experienced all year long.
The majority of the price loss for real estate in Regina has occurred in the last twelve months due to slowing demand, high inventory and the difficult impact of federal mortgage stress rules introduced in the fall of 2016 and the second round in January 2018. These rules have caused many buyers hoping to purchase a home either to look down in price range or leave the market altogether because they cannot qualify for mortgage financing.
In Regina, there were 1,743 active residential listings on the market at the end of June, an increase of 10.5% from 2017’s 1,577 but only up slightly from 1,734 at the end of May. This was the smallest number of listings noted at the end of the month so far- let's hope this is an indication of the market stabilizing.
In the city, there were 583 new listings added, a decrease of 12.3% from 665 in 2017. Fewer listings is a good thing because we already have so many houses on the market.
The ratio of sales to new listings for the month was 48% in the city and 48% in all area’s surrounding Regina. Balanced market conditions are generally in the 40-60% range. Below 40% is considered to be more of a buyers’ market while above 60% is considered to be a market favouring sellers. I suspect that this recent balance is a result of less listings coming onto the market in June and not of a stable market- we are still in a buyer’s market.
Homes that did sell in the Regina sold in an average of 58 days in the city and 65 days in all areas. These compare to 34 and 40 days respectively last year. More supply and less demand results in homes taking much longer to sell.
Overall, it was a slow first 6 months of the year. May & June were promising and proved good conditions for both buyers and sellers. The Bank of Canada announced another benchmark rate increase on June 11th. Over the next few months we will keep an eye on the market trends and real estate in Regina to see how this rate increase affects us.
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If you have any questions about the Regina Housing Market in June or you would like more information on your own home sale, you are welcomed to contact me at 306-552-7047 or fill out my online contact form!
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