Concerns are mounting about Saskatoon’s housing market.

The Saskatoon Region Association of Realtors warns prices are expected to flatten and drop in the city, thanks partly to a ballooning number of listings.

“Real estate markets can be very cyclical,” says Norm Fisher, broker and owner at Royal LePage Vidorra.

The number of listings has exceeded the five-year average by 40 per cent and sales have recently slowed.

A few homes are still selling for their original asking price, but analysts say the market is soft due to a slowing economy anchored down by lower oil prices.

Others say the market is just dropping to a realistic level.

“House prices went up way more than they ought to have, given the size of the city. Now we’re entering a period of realism," says Daphne Taras, dean of the Edwards School of Business at the University of Saskatchewan.

The slowing housing market is also affecting the rental market.

Rental vacancies have grown to the point where some landlords are offering major incentives, such as discounts on rent, and keeping a close eye on the upcoming school year.

“If the student market doesn’t tighten up the market, then rental prices might be coming down,” says Roger Wilson of Elite Property Management.