Regina Real Estate Week In Review Mar 30 - April 5, 2015 & March 2015 Month In Review
For the week of March 30 - April 5, 2015 & March 2015 month end review:
It was a week of CHANGE in our market this week, Listings are WAY up, Sales down & Bad news for buyers with less than 10% down after June 1, 2015! Let's first find out what the mortgage market update is courtesy of my partner mortgage broker
Colin Hildred. This week's article breaks down the BIG news from CMHC this past week!
CMHC is raising its premium for borrowers with less than 10% down payment from 3.15% to 3.6%, effective June 1. This change is expected to increase average monthly payments by about $5 so will not have a material effect on affordability.
When it comes to housing demand, insurance costs are far less a factor than affordability. Nevertheless, the change will add $3,600 more to a $300,000 mortgage over those that have 10% down and likely push some people off the fence and into the
market. The other two mortgage insurers have not announced changes to their premiums but it would not come as a surprise to see a quick announcement.
You can contact Colin directly by clicking on the Mortgage pre-approval link under my Buyer's tab for futher information or to get your pre-approval application started.
Now let's move onto this weeks activity.
Market activity this past week :
New Listings :
Single family homes : 112
Total active single family : 946
Lowest active list price : $27,000
Highest active list price : $1,500,000
Average Asking Price : $362,570
Average Days On Market : 57
Condos : 30
Total active condos : 398
Lowest active list price : $114,900
Highest active list price : $1,050,000
Average Asking Price : $297,300
Average Days On Market : 66
We had 35 firm "Single Family" sales last week, with the average seller asking $323,200 and accepting an average sell price of 312,243 or 96.6% (List To Sell Price). They took an average of 33 days to sell. The low sale was $46,000 and the high sale was $478,000. The number of firm sales are down by 11 from last week and the average sell price was up at $10,121.
We had another good week with 8 firm Condo sale last week with the seller asking $284,900 and accepting a sell price of $277,563 or 97.4% (List To Sell Price.) They took an average of 37 days to sell which is down slightly from 40 last week.
Cancelled, Withdrawn or Expired Listings :
Single Family : 68 ( Up 47 from 21 last week, Typical end of month as most agents setting their listings to expire at the end of the month)
Condos : 29 ( Up 27 from 2 last week, again this is due to the end of the month expiry date of most contracts)
Market Summary :
April kicks off with a few skewed numbers as we see a LARGE number of single family listings hit the market but this is also offset by the LARGE number of cancelled and expired listings at the month end. We had a net change of 30 listings in the market (week over week) which has been typical this year. I am not alarmed by this, however this is the first time this year we have seem the number of condo's available on the market remain unchanged for a 1 week period. In turn the average asking price of single family homes dropped for the first time since February by $2,851. The average asking price of condo's INCREASED for the first time since the end of January by $969.00 Hopefully this will bring some stability to a market where price reductions have been a common theme with condo sellers in the past 6 weeks.
I really feel the need to explain the effects of the CMHC premium increase most buyers don't realize. Let me play a small scenario. You buy your new home for $300,000. You put 5% down which is $15,000. Your bank gives you a mortgage for $285,000 + the CMHC fee of 3.15% = $293,977.50. After June 1 your mortgage would be $285,000 + CMHC 3.6% = $295,260. Your starting mortgage balance increases by $1282.50. If you are going to wait till the end of summer to buy unless you can predict a market drop you will be paying MORE money for the exact same product. You don't have to take possession of your new home before June 1st however CMHC must receive your offer to purchase from your bank prior to June 1 to not pay the increased premium.
Keep this in mind for your real estate decisions this spring!
Now let's discuss the market change from February - March 2015.
Market activity for the month of March:
New Listings :
Single family homes : 367 ( Up from 270 in February )
Total active single family : 938 ( Up from 822 in February )
Lowest active list price : $27,000 ( No Change )
Highest active list price : $1,500,000 ( No Change )
Average asking price : $362,570 ( Up From $353,519 in February )
Average days on market : 57 ( Down from 62 in February )
Condos : 139 ( Up from 116 in February )
Total active condos : 398 ( Up from 367 in February )
Lowest active list price : $114,900 ( No change )
Highest active list price : $1,050,000 ( No change )
Average asking price : $297,300 ( Down from $299,805 in February )
Average days on market : 66 ( Up from 60 in February)
Single family homes : 186 ( Up from 156 in February )
Average asking price : $322,570 ( Down $3,658 from February )
Average sell price : $312,431 ( Down $836 from February )
Lowest sell list price : $38,000 ( Down $4,500 from February )
Highest sell list price : $795,000 ( Down $125,000 from February )
Average days on market : 39 ( Down 8 from February )
Condos : 36 ( Up 17 from February )
Average asking price : $287,197 ( Down $11,956 from February )
Average sell price : $278,897 ( Down $9,982 from February )
Lowest sell list price : $134,250 ( Down $29,750 from February )
Highest sell list price : $579,000 ( Down $281,000 from February )
Average Days On Market : 45 ( Down 27 from February)
Month End Analysis :
The single family market continued along a very similar path as last month with very nominal change in inventory levels and sell price. The average asking price is up 3% would be the largest change. I will note a large growing trend in the number of new listings vs sales on a month over month basis. It will be interesting to see if this market continues to hold strong on it's average asking price unlike the condo market. The market appears to be well balanced at this point again.
The condo market has been on the same path it has been on all year; week after week of pricing adjustments going on and more inventory continuing to hit the market. We have finally seemed to cool off that trend this past week and let's hope that this is the end of the correction in the market place. On a more POSITIVE note we had almost the same amount of sales in March as we did in January & February combined! With these recent sales we have now dropped from 19 months of inventory to 11! This is great progress for sellers and their are still plenty of opportunity in the market place for buyers to jump in a great price point to what they would have paid only a year ago!
The snow is mostly gone and spring is on the horizon! Don't forget to make sure your gutters are cleaned out and downspouts are in place as we are soon to be into the rain!
Thanks for stopping by!