Continuing on a slide, average house prices in Moose Jaw slipped last month below $200,000 for the first time in over five years.
The average price of a local home sold on MLS in January dipped 9/10ths of one per cent to $199,600, according to the Association of Regina Realtors monthly report.
Price was down 8.3 per cent from $217,600 a year ago. Fewer for sale signs went up. New listings of 50 properties declined from 63 last January.
"The bright spots right now might be the amount of choice that buyers have,” commented Rob Rayner, manager of operations for the association. “That could be very positive heading into spring.”
He acknowledged this is a buyer’s market because of a lower than 40 per cent sales to listings ratio.
The market is considered in balance when sales to listings are between 40 per cent and 60 per cent. Above 60 is a seller’s market.
MLS has just over one year’s inventory of listings to sell, compared with seven months in 2016 when the average price was $224,300.
Sales for the month numbered 20, less than 23 last January, and just below the five-year average of 21.
The decline in home prices has implications for future property taxes. Property taxes are based on an assessment of average market prices every four years.
Lower market prices in three years for the next reassessment would require higher taxes, alternate revenue sources, service cuts or a combination of these options.
Ron Walter can be reached at ronjoy@sasktel.net
