Sutton Group Results North

Regina's real estate market had a banner year in 2011, setting records for sales volume and average prices and posting the second-highest number of sales all-time, according to the Association of Regina Realtors.

And 2012 is shaping up to be another strong year, says the executive officer of the association in his annual year-end review and forecast.

"All of the forecasts for the province and the city I've seen (predict) we're going to at or near the top of the growth lists,'' said Gord Archibald, executive officer of the association. "Assuming that's the case and assuming the economy generates jobs, population and household growth, we'll continue to see the levels of demand we've seen in the new market.''

Archibald noted that for the 30 years prior to 2007, Regina home sales averaged 2,500 to 3,000 a year.

However, since 2007, home sales have ranged between 3,400 and 3,900. "This is the new normal.''

Last year, 3,876 homes were sold on the multiple listing service (MLS) in Regina and area, up nine per cent over 2010 when 3,563 properties changed hands. That's the second-highest number of sales in a year, behind 2007 when 3,935 sales occurred.

The total dollar volume of sales surpassed the $1-billion mark for the first time in November and ended the year at $1.076 billion - up 17 per cent over $919.4 million posted in 2010.

Average sales price for homes sold in the Regina area set a new high of $277,909, an increase of eight per cent over the previous record set in 2010 of $258,029.

The average sales price in the city proper also set a new high at $285,759, up eight per cent over the previous year's average price of $263,519.

In December, the number of sales broke the 200-mark for the first time, with 225 homes sales reported in the Regina area, an increase of 22 per cent from 2010.

Total dollar volume of sales also set a new high for December at $61.6 million, an increase of 33 per cent over $46.4 million in 2010.

The average sales price for December also established a new record of $273,919 for the Regina area, an increase of nine per cent over $250,564 posted in 2010. In the city, the average price for the month was $285,326, up 13 per cent over $252,569 recorded in 2010.

Archibald said the only "wild card'' in his forecast for 2012 is the lack of listings, noting that there were only 375 homes listed on MLS at the end of 2011, which is the lowest level since 2007 when only 273 homes were on the market. "We had over 800 (listings) at the end of 2008,'' he said.

But he added November, December and January are typically the "least active months'' for home sales.

"If we had this number of listings on the market in March or April, then that would be a problem.''