Regina realtors see slowest year for home sales in a decade

Last year was sluggish for home sales in Regina according to the Association of Regina Realtors (ARR).

In 2017 the Regina and area Multiple Listing Service® System recorded the fewest number of home sales in the past decade.

“By all key measures, 2017 was the slowest year since the residential real estate boom of 2007,” said Gord Archibald, chief executive officer for the association.

During the year there were 3,271 residential sales in the Regina area, down four per cent from 3,408 recorded in 2016. As a comparison, before the real estate boom,  2,943 homes were sold in 2006.

“A combination of slower economic and job growth, higher supply levels and public policy decisions such as the federal government making it more difficult for buyers to qualify for mortgage financing all contributed to the slowdown,” Archibald explained.

There was a bright spot for buyers however, prices are down and there are more houses on the market.

In Regina, the average home sold for $318,372 compared to $319,003 in 2016 which marks a decrease of 0.2 per cent.

The number of active listings for sale on the market was consistently higher throughout the year in comparison to recent years. In part, this was due to fewer sales with homes staying on the market for longer and a higher number of new listings coming on the market during the year.

“Going into 2018, economic and job growth forecasts for Regina and area are optimistic. This should help stimulate demand for housing, although another round of new and more stringent mortgage stress rules introduced by the federal government to make it even more difficult for buyers to qualify for mortgage financing is concerning,” Archibald concluded.

He notes that the Regina real estate market needs stimulus for demand, and the new mortgage rules could have a dampening effect.