Like its population base, Estevan's real estate market seems to evolve monthly.Although demand remains fairly constant month in and month out, supply has almost doubled in the Energy City since March.A search on the Multiple Listing Service (MLS) internet database, brings up 91 properties for sale in Estevan, with the inclusion of mobile homes and condos.This is up from approximately 50 in March, according to Lynn Chipley, owner of Century 21 Border Real Estate Service in Estevan."Certainly it's not a seller's market anymore," said Chipley, noting that there were times in January when there were fewer than 40 listings on the market. This, in effect, put upward pressure on real estate prices in the city.With supply far greater than demand at this time, one might expect housing prices to decrease.This is not necessarily the case. Chipley says prices may soften a bit - perhaps two to three per cent - but for the most part will remain where they are due largely to the constant demand."Year to date we've already sold more houses this year than we did from January to July of 2008," said Chipley.Lorna Pylychaty, owner of RE/MAX Progressive Realty said about 212 properties have changed hands in the city so far this year - just under 30 per month."I think that pretty much tells it right there - demand is high," said Pylychaty. So, although the greater inventory will force sellers to price more competitively, it is not likely that prices will decrease any time soon.According to Pylychaty, the average selling price of houses in Estevan - not including mobile units - is about $225,000, which is high, considering the average price was down around $110,000 only a few years ago, she said.Today, an entry-level $100,000 to $110,000 house simply doesn't exist."$150 to $200 is definitely the entry-level if you want to get into a house," said Chipley, who said a lot of houses in Estevan are being sold to first time buyers."This year is a funny year because I would say the bottom end of the market is selling really well, with the bottom end being anything under $200,000 and the high end, which is $375,000 plus, is also selling very well. But the middle of the market, which is typically our bestselling market, has actually eased off," said Chipley.This, again, is a result of the increased real estate inventory, Chipley said.Even though Estevan has been somewhat of an anomaly in regards to economic downturns in the last few years, real estate buyers will still be subject to regulations by the Canadian Mortgage and Housing Corporation, aimed at softening the blows dealt by potential downturns in the future.The CMHC recently made some rule changes in regards to government-backed insured mortgages, which Chipley said may also end up deterring potential first-time buyers from stepping into a house.According to a government press release from mid-February, rules now "Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future."This will likely lead to higher rates, so Chipley says buyers can't afford as much as they could six months ago."(The CMHC) is just wanting to make sure that people don't get themselves into situations of default, where if the interest rates happen to go up a point or two they can no longer afford their houses," said Chipley.
