Toronto, Ontario (PRWEB) August 26, 2013 -- Regina, Saskatchewan is a thriving capital city that more than 210,000 Canadians call home. When a homeowner is deciding whether to buy or sell in Regina, many market indicators affect their decision to buy says KANETIX.
One factor that affects housing demand in Regina relates to the city’s current population and projected growth in the near future. In Regina, more than 47 per cent of both married and common law couples had children living with them (a number that is marginally higher than the national average). In addition, the city’s population as a whole increased by almost seven per cent from 2006 through 2011, which is slightly below the national average for population growth but still a positive trend.
Throughout 2012 and through the beginning of 2013, Regina has enjoyed a strong economic boost. One of the most significant factors related to housing demand relates to rising wages in the area. As the average income increases for consumers, there is generally an increase in demand for housing. This demand may be from renters becoming first-time home buyers, as well as from existing home owners making the decision to upgrade to a larger home.
Existing home sales for most the last half of 2012 and the first half of 2013 have been lower than in previous years. While demand for housing has generally increased during this period of time due to low mortgage rates, positive net migration, and rising wages in the area, new construction of homes has been significant during this time period. While the trend in the resale of existing homes has been decreasing, this is anticipated to turn around as new construction of homes in Regina slows down within the next year.
The demand for newly constructed homes was elevated in 2012, but this demand is expected to decrease through 2013; in fact, it is estimated that new construction of single family residential homes in Regina will be 22 per cent lower in 2013 than in 2012. This trend seems to be a result of the shift to an increasing supply in the resale market, as well as the existing inventory of newly constructed homes remaining on the market throughout 2013. While the rate of new housing starts for 2013 will be lower than in 2012, it is important to note that the level of housing production in the area is still expected to grow at a much higher rate compared to the levels in previous decades.
In 2012, resale housing prices in Regina increased by an astounding 8.5 per cent. This increasing trend in housing prices is expected to continue to increase for 2013, though at a slightly slower pace. For 2013, housing prices are anticipated to increase by about 3.6 per cent from the previous year, while in 2014, housing prices are projected to increase by approximately 2.4 per cent from 2013. (The average resale price of a home in Regina is roughly $312,000 for 2013; this price is expected to be $320,000 in 2014).
While some of the increase in housing prices is related to rising demand, it is important to note that some of the newly constructed homes built over the last few years are higher-end homes. Some of these homes that are being sold quickly are increasing the average resale home price in the area.
According to Canada Mortgage and Housing Corporation, mortgage rates in Regina are still relatively low—which may be one reason for an increase in the purchasing of higher-priced homes. Short-term mortgage rates and variable mortgage rates are expected to remain much lower than average. Writers of the CMHC survey believe this may “cushion the blow for rising home prices in the area.”
There are many factors that will drive real estate supply and demand, and because of this, it can be challenging to accurately predict what the market in Regina may do in the next year or two. However, given Regina’s relatively low mortgage rates and growing annual income per resident, real estate market conditions are expected to remain positive. It is important to note that factors like rising interest rates and rising home prices may make now an ideal time to buy a home.
Launched in October 1999, KANETIX was Canada's first online insurance marketplace and today provides over a million quotes per year to consumers looking for insurance, as well as comparisons for mortgage rates and credit cards.
The KANETIX comparison service is a one-stop shopping environment for consumers. Each day, thousands visit the KANETIX website to comparison shop their various financial needs. Shoppers choose what they want to compare, obtain a quotation and complete an online application or, with the help of KANETIX connect with the provider to purchase or apply for the product over the phone.
Through its Software as a Service team, KANETIX is also the leading provider of online insurance quotation technology, developing online quotation systems, mobile solutions, actuarial tools and websites for many of Canada's largest insurance brands.
For more information, visit KANETIX.ca or contact:
416.599.9779 ext. 343
Cathy-Anne O'Brien, BlueSky Communications, +1 (416) 929-2506, [email protected]
SOURCE BlueSky Communications