It is a buyer’s market for people looking at new homes in Regina.
According to the Association of Regina Realtors (ARR), the average price of a home has dropped by 4.85 per cent in the last year down to $279,400 from $293,600 in January 2017. Over the last five years, the benchmark price of a house in Regina has also fallen by nine per cent.
“We did see some significant price loss occurring, particularly in the latter half of 2017 and it’s at its’ lowest level in quite a number of years, in fact our prices are less than what they were five years ago,” explained Gord Archibald, CEO of ARR.
He noted the drop in house prices is mainly due to pressure from the high supply of houses for sale on the market.
“We have elevated supply levels and have had really roughly since about 2013 at least historically speaking,” Archibald said. “Sales have been tempered because of a slower economic growth taking place in the Regina area.”
More people were buying homes in January compared to this time last year with 172 sales reported.
Archibald said this is an encouraging sign for the real estate market, while noting realtors will have to wait and see what happens for the rest of the year. He said the middle of winter is typically a slower time in the real estate market, with sales normally picking up closer to March.
There were also more homes on the market, with a total of 1,113 active listings at the end of January. This is an increase of 20 per cent compared to the same month last year.
A large portion of the listings are condos which account for 28 per cent of the total active listings.
Archibald said the supply of active listings has put buyers in a good bargaining position and forced sellers to set prices to reflect these market conditions.
He noted in the current market homes are staying on the market for closer to 60 or 70 days before being sold rather than the normal market condition of 30 days.