ASSOCIATION OF REGINA REALTORS®
June 4, 2019 REGINA REAL ESTATE MARKET SLOWS, ENDING 2019’S UPWARD TREND MLS® System activity in Regina through the month of May 2019 shows the first decline in sales following a strong start to 2019, said the Association of Regina REALTORS® Inc. (ARR).
There were 340 sales reported during the month in all geographic regions, down 6.8% from 2018 when 365 sales were posted. This is the first decline in sales in 2019, following four consecutive months of sales increases over 2018, and falls well below both the 5-year average of 379 sales and 10-year average of 391.
There were 284 sales reported in the city, down 3.4% from 2018 when 294 were posted. Again, sales were down from both 5- and 10-year averages for the month of 309 and 324, respectively.
Year-to-date (YTD), 1292 homes have sold in all areas – an increase of 6.8% over last year. In the city, 1,086 sales have been posted, up 9.7% from 2018.
For May, the MLS® Home Price Index (HPI), a much more accurate measure of housing price trends than average of median price, reported a Composite Benchmark Price of $266,500 for sales in the city, down 3.9% from $277,300 one year ago. The benchmark price continues to slide downwards, indicating pressure on home prices due predominantly to elevated supply levels and weakened demand. Over the past five years, the benchmark price is down 12.1%
There were 628 new listings in the city, compared to 696 last year. YTD, new listings in the city are down 8.3% from 2,640 in 2018 to 2,421.
The ratio of sales to new listings for the month was 45% in the city and 40% 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, and above 60% is considered a market favourable to sellers. We caution this would need to persist for several more months before the market would be considered to be in balance.
“The effects of a relatively weak economy coupled with federal mortgage stress rules are continuing to have a cooling impact on demand levels,” says Gord Archibald, Chief Executive Officer of the ARR. Indications are that we have now leveled out as far as both increasing levels of supply and decreasing demand.
Price losses also appear to have bottomed out. “We are hopeful that the upcoming summer months will result in more sales taking place. There has been no better time for buyers to enter the marketplace in the past number of years than now, provided they can qualify for mortgage financing,” concludes Archibald. The Association 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.
For more information, contact: Rob Reynar – Manager of Operations
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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