ASSOCIATION OF REGINA REALTORS®
April 2, 2019
MIXED RESULTS FOR 1ST QUARTER HOME SALES
Based on activity through the Regina and area MLS® System, homes sales in March were up over 2018 but below long term averages, said the Association of Regina REALTORS® Inc (ARR).
There were 237 sales reported during the month in all geographic areas, up 10.8% from 2018 when 214 sales occurred. This marks the third consecutive month that sales were up over the previous year, although below the 5-year average of 270 sales and the 10-year average of 303. There were 207 sales reported in the city, up 19.0 % from 2018 when 174 were posted.
The number of sales in the city was below the 5-year average of 222 and the 10-year average of 249 for the month. For the first quarter of the year, there have been 606 homes sold in all areas, a 5.6% increase over last year. In the city, 520 sales were posted, up 11.1% from 2018.
For March, the MLS® Home Price Index (HPI), a much more accurate measure of housing price trends than average or median price, reported a Composite Benchmark Price of $264,100 and index of 247.3 for sales in the city, down 4.6% from $277,000 one year ago. Despite some slight recovery in March from February, the Benchmark Price has continued a general downward trend, indicating downward pressure on home prices due predominately to elevated supply levels and weakened demand. Over the last five years, the Benchmark price is down 12.1%. The HPI measures residential price trends based on four benchmark home types, with the index set at a base of 100 for January 2005. Total dollar sales volume in all areas was $68.7M, up 8.1% from 2018’s $63.5M. The year-to-date (YTD) sales stood at $178.2M, up 4.3% from $170.9M in 2018.
In the city, there were 1,315 active residential listings for sale on the market at the end of March, down 6.7% from 2018’s 1,409 at the same time, although still well above historical levels. The decrease is primarily due to fewer new listings coming on the market.
There were 684 new listings placed on the MLS® System during the month in all geographic areas, a decrease of 2.0% from 2018’s 698. Year-to-date, new listings of 1,559 are down 13.4% from 1,801 in 2018. There were 530 listings posted in the city, compared to 525 last year. YTD, new listings in the city are down 12.4 % - 1,220 this year compared to 1,393 in 2018.
The ratio of sales to new listings for the month was 39% in the city and 34% in all geographic areas. Balanced market conditions are generally in the 40-60% range – below 40% is considered to be more of a buyer’s market, while above 60% is considered to be a market favouring sellers.
“It was encouraging to see sales up over the first quarter of last year, although we need to keep in perspective that 2018 was the poorest year for sales since 2005.
Lower levels of economic growth and job losses coupled with the impact of federal mortgage stress levels have cooled demand levels for over a year now. Stress rules have taken many buyers, particularly first-timers, out of the market over the past year due to more difficulty qualifying for mortgage financing even though they can afford monthly payments”, said Gord Archibald, Chief Executive Officer of the ARR. “We anticipate that forecasts of an upswing in both economic growth and employment levels will translate into more sales. We are also hoping that announcements in the recent federal budget to assist first-time buyers will help offset the local effects of mortgage stress rules”, concluded Archibald. The ARR operates the Multiple Listing Service® System in Regina and area and publishes the Southern Sask 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.
Gord Archibald, Chief Executive Officer 306-791-2705 Garchibald@ReginaREALTORS.com Trademark owned or controlled by the Canadian Real Estate Association. Used under license.
The REALTOR® Code
CREA’s REALTOR® Code has been the measure of professionalism in organized real estate for over 40 years. The first code was approved in 1913; members approved the first code of ethics specific to CREA members in 1959. The Code has since been amended many times to reflect changes in the real estate marketplace, the needs of property owners and the perceptions and values of society.
A REALTOR’s® ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public. The REALTOR® Code, by setting high standards of professional conduct for REALTORS®, helps to protect Canadians’ rights and interests. It also creates a level of trust between REALTORS® and their clients.
A STRICT STANDARD OF CONDUCT
The REALTOR® Code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures the protection of the rights and interests of consumers of real estate services. As a condition of membership, all REALTORS® agree to abide by the Code.
Key items of the Code include:
- REALTORS® must disclose in writing whom they are representing as an agent in the transaction, and explain to parties in a transaction the details of the agency relationship; and
- REALTORS® can’t acquire an interest in property (either directly or indirectly) without disclosing the fact that they’re real estate professionals.
THE CODE AND THE LAW
The REALTOR® Code establishes obligations that may be higher than those mandated by law. However, in any instance where the code and the law conflict, the obligations of the law must take precedence.
Courtesy of: Canadian Real Estate Association (CREA) CREA.CA