December 4, 2019
HOME SALES TAKE DIP IN NOVEMBER
Based on activity through the Regina and area MLS® System, homes sales in November were well below both last year and long-term averages, said the Association of Regina REALTORS® Inc.
There were 166 sales reported during the month in all geographic areas, down 27.5% from 229 in 2018. This compared to the 5-year average of 238 and 10-year average of 252 sales. This is the lowest number of sales in the last 15 years for the month.
There were 145 sales reported in the city, a decrease of 21.2% from 2018 when 184 were recorded. The number of sales in the city was also below the 5- year average of 194 and 10-year average of 210.
For the year-to-date, 2,943 homes have been sold in all areas, up 1.0% over last year’s 2,915. In the city, 2,433 sales have been posted, up 3.3% from 2018’s 2,356.
For November, 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 $259,600 and index of 238.3 in the city, down 5.5% from $274,800 one year ago. This reflects a general downward trend, indicating downward pressure on home prices due to the combination of less demand for economic reasons and the federal mortgage stress test, which has taken many buyers out of the market.
The Composite HPI Benchmark Price is down 12.2% from three years ago and 11.2% from five years ago. The HPI Composite price is now at its lowest since being adopted by the association in 2012.
Total dollar sales volume in all areas was $46.6M, a decrease of 32.1% from 2018’s $68.7M. Year-todate dollar volume of $885.3M is identical to 2018.
In the city, there were 1,299 active residential listings for sale on the market at the end of November, down from 1,395 one year ago.
There were 341 new listings placed on the MLS® System during the month in all geographic areas, a decrease of 12.8% from 391 last year.
Year-to-date, new listings of 6,313 is down 9.4% from 6,969 in 2 2018.
There were 291 new listings posted in the city, compared to 309 last year – a decrease of 5.8%. Year-to-date, new listings in the city are down 9.8 % - 4,868 this year compared to 5,397 in 2018.
The ratio of sales to new listings for the month was 49% in the city and 48% 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 - above 60% is considered to be a market favouring sellers.
“The number of sales taking place in November was certainly discouraging. After a few encouraging months in the earlier fall, it was a surprise for such a pronounced dip to occur. Demand, and in turn the number of sales, has been affected during the year by economic factors and the federal mortgage stress test, which has put many potential buyers on the sidelines. The mortgage stress test has had a significant impact on the local market and in our view was not needed here,” said Gord Archibald, Chief Executive Officer of the Association of Regina REALTORS® Inc.
“Sellers continue to be advised to set their asking price for these conditions. Buyers should make sure they qualify for mortgage financing before beginning a home search. Prices are at their lowest level in many years and there is plenty of choice in the market for anyone looking for a home,” concluded Archibald.
The Association operates the Multiple Listing Service® System in Regina and area. 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: Gord Archibald, Chief Executive Officer 306-791-2706 GArchibald@ReginaREALTORS.com
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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