CREA Expecting Home Prices to Remain Flat in Saskatchewan in 2019
The Canadian Real Estate Association isn’t expecting any increases in home prices in Saskatchewan in the foreseeable future.
The CREA says sales were down in most parts of Canada in 2018, largely because of the new Mortgage Stress-Test that came into effect on January 1, 2018.
December of 2018 was a particularly bad month in Canada for housing sales, and prices. The CREA reported that the actual (not seasonally adjusted) national average price for homes sold in December 2018 was just over $472,000, down 4.9% from the same month in 2017.
The CREA says the major reason for such a big drop is that there was a surge in home buying in December of 2017 by people hoping to purchase a home before the new Mortgage Stress Test came into effect in January of 2018.
In Saskatchewan, the CREA says prices have been slowly declining for the past five years.
In Saskatoon, it says the Home Price Index Benchmark Price for all types of housing was $289,600 in December of 2018, a drop of 1.24 percent in the past year, and a drop of 6.19 percent in the past 5 years.
In Regina, the Home Price Index Benchmark Price for all types of housing was $267,400 in December of 2018, a drop of 5.22 percent in the past year, and a drop of 11.11 percent in the past 5 years.
The CREA cautions that while the Average Price Information can be useful in establishing trends over time, it does not indicate actual prices in Cities with widely divergent neighbourhoods, or account for price differences between geographic areas. It just shows trends affecting house prices in different parts of the Country.
There has been mounting pressure in the past few weeks on the Federal Government to ease back on some of the restrictions which are making it tougher for first-time home buyers to obtain a mortgage.
And the lower prices in most parts of the country are making housing affordability a bit better. Saskatchewan remains one of the most affordable places to purchase or own a home in Canada, and here’s hoping for an improved market overall in the year ahead.