FIRST HALF ENDS WITH SALES SURGE IN JUNE
Based on activity through the Regina & area MLS® System, residential sales in June surged well above 2014 while the level of listings for sale in the city continued at twenty-year plus highs, said the Association of Regina REALTORS® Inc.
There were 433 sales reported in all geographic areas, up 21% from 2014 when 357 sales were posted. The number of sales was above both the immediate past five-year average of 384 and the ten-year average of 369 for the month. It marked the second highest number of sales for any June (behind only 453 occurring in 2007) and the largest number of sales since May 2012. There were 348 sales reported in the city only, an increase of 27% from 2014 when 273 sales occurred.
For June, the MLS® Home Price Index (HPI) reported a composite index level of 268.2 and residential price of $282,700 for the city. These are down 3.4% from last year’s levels of 277.7 and $292,700. This indicates that residential selling prices have fallen in the Regina market over the past year. The HPI also shows selling prices as being down 5.0% over the past three year period. The HPI is a much more accurate measure of housing price trends than average price.
The average sales price in all market areas for the month was $315,904, an increase of 3% from 2014’s $308,158. The average in the city was $316,559, down 3% from last year’s $325,401. There is close to a $35,000 difference between the HPI composite price and average price for the city – the higher average price is entirely attributable only to a larger proportion of higher priced homes selling and should not be interpreted as an indication of property values.
Sales in all areas totaled $136.8M compared to $110.0M in 2014 – a 24% increase. Dollar volume in the city of $110.2M was up 24% from last year’s $88.8M.
For the year-to-date to the end of June, 1,706 sales have been reported in all areas – a 6% decline from 1,818 in 2014.
In the city, 1,398 sales have been reported, a decrease of 5% from last year’s 1,472. The YTD average price to the end of June was $315,511, up 0.2% from last year’s $314,932. YTD sales volume stood at $538.2M, down 6% from 2014’s $572.6M. During June, homes which sold in the city were on the market for an average of 37 days before selling at an average of 96.9% of the asking price, both identical to 2014..
In the city there were 1,499 homes for sale at the end of the month, an increase of 5% from last year’s 1,431 and 45% from 2013’s 1,036. This is the largest number of homes for sale at the end of June in over 20 years although is down slightly from the high posted so far in 2015 in May of 1,549. There were 587 new listings in the city placed on the MLS® System during the month, up 1% from 583 in 2014.
The ratio of firm sales to new listings for the month in the city was 59% and 52% in all geographic areas. Balanced market conditions are generally in the 40-60% range – below 40% is considered to be a buyer’s market - above 60% is considered to be a market favouring sellers.
“After several months of sales activity being below historical levels, sales really took off in June. In fact, it was exceptional with the number of sales being the second highest ever in any June. It also helped check the growth in the elevated number of listings for sale in the city which was down for the first time this year from the previous month”, said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.
“Although one month does not make a long term trend, it does speak to the underlying strength of the local economy and real estate market”, concluded Archibald.
The Association operates the Multiple Listing Service® System in Regina and area and publishes the Regina Real Estate Review. The MLS® System is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties for sale.
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