Regina's supply-rich market continues

By NextHome Staff
July 01, 2015

The Association of Regina Realtors (ARR) has announced details of a Regina supply rich market. The professional body said in a statement that while sales had dropped, April figures for listings had hit a 20-year high.

Regina-Supply-Rich-Market-content-341x222“There were 326 sales reported in all geographic areas, down 17 per cent from 2014 when 391 sales were posted. The number of sales was below both the immediate past five-year average of 383 and the 10-year average of 354 for the month,” the ARR said.

The association also reported an average residential price of $283,800 in the Regina supply-rich market, representing a drop of 3.7 per cent year-over-year.

“Elevated supply levels carried over from 2014 have persisted so far this year, providing buyers with a wide range of choices in most areas and price ranges. This has led to downward pressure on prices and extended periods of time for homes to sell. Sellers are well advised to set their asking price to reflect these conditions,” the ARR said.

It added that in spite of the slower market, economic fundamentals were supporting a steady demand for housing in the area, but that vendors were advised to set their asking price to reflect the property situation. It reported that selling prices are down 2.1 per cent over the past three years.

Regina-Supply-Rich-Market-content-500x357However, a Globe and Mail article noted that prices in Regina have "boomed" in recent years and part of the supply issue was as a result of developers responding to the boom with a barrage of new home building, particularly condominiums. The concern, noted the article quoting a source in the Canada Mortgage and Housing Corporation (CMHC), was that the increase in development has left the city's housing market at a high risk of a price downturn. Prices have risen much faster than incomes in recent years, warned CMHC, and overbuilding could become an issue.

Established in 1912, the ARR is part of a national and international real estate network with access to the latest trends, technologies, and marketing information. Its Home Price Index uses four benchmark home types, with the index set at a base of 100 for January 2005.

Photos by: Estates in Canada, Royal LePage Regina Realty, James Wruth Real Estate Agent

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