This fall, the Regina market has experienced record high month-to-month real estate sales after about eight months of a 3 percent decline. September brought the highest sales rate the month had ever seen, and in October, with 318 homes sold on the multiple listings service (MLS), sales were the second highest for the month over the past 10 years. This put October well above the five-year average of 308 and the 10-year average of 273 homes sold.
Residential property values have actually gone down in Regina in the last year, as the home price index shows a combined residential price of $297,400, a 3.4 percent decrease since last year. However, this is likely due to a larger number of more expensive homes selling, which tends to have a skewing effect on the average.
In October 2013, the average home's sale price in the city was $321,401. This year, there was a 4 percent increase to $333,294. Sales in September and October subverted market expectations, as the fall usually comes with a seasonal drop-off in demand. However, the demand and pace of sales has actually increased in the fall months this year.
The number of homes listed on the MLS has been the highest in more than two decades, steadily ranging between 1,250 and 1,450 listings per month. Although October saw a small reduction from the number of homes listed on the MLS compared to the end of September (1,349 to 1,255 at the end of October), it far exceeded the totals from last year (996) and almost doubled the 2012 listing of 660 homes.
This movement in the Regina real estate market mirrors the overall Canadian market. Even though the country's population growth is projected to slow over the next five years, the present annual range of 190,000 to 200,000 newly built homes should maintain as older members of the population seek to build new.
Additionally, vacancy rates on condominiums are only at 2 percent, which indicates a growing demand for condo-style living. This is true for both retirees, who might be looking to downsize after their children leave their homes, and younger people who desire a more urban, active lifestyle than what the suburbs can provide.
We continue to see positive trends in the Regina real estate market, especially when it comes to the residential and condominium sectors. Imperial Properties is opening a new office in Regina December 15, allowing us to better serve this burgeoning market.