We’ve recently seen several national news headlines talking about how Canada’s housing market is “overheated” and how we should expect a market correction very soon.
One example was a recent report written by the Canada Mortgage and Housing Corp. (CMHC) which stated that the “Canadian housing market has moved from a moderate to a high degree of vulnerability and that the change was prompted by the detection of price acceleration alongside persistent overvaluation imbalances.”
Although these warnings are likely warranted on a national level, we wanted to explain that when you focus more locally, into the Saskatoon real estate market specifically, the statistics definitely tell a different story.
National news media, and reports like the one from CMHC are largely based on statistics that come from the major cities in Canada like Toronto, Vancouver or Montreal. Comparatively, Saskatoon’s market is like a little island of calm amongst all of the madness.
Saskatoon’s market has undoubtedly been HOT since COVID-19 hit. 2020 saw a record high number of sales and 2021 has been even busier. As of October 3rd, the number of homes sold is up 34% compared to the same time in 2020.
Even though our market is busy, our market is still relatively stable. CMHC considers an unbalanced market to have around an 85 per cent sales to listing ratio, which is close to where Toronto and Vancouver are at, but Saskatoon is more in the 60 per cent range.
Also, we don’t have an excess of inventories in Saskatoon. There were 1338 active MLS listings as of Oct 3rd. There were 651 new listings in September which is down -20% for the month compared to September 2020.
Also, average prices are definitely up, but nothing compared to other major cities in Canada. The average sales price in Saskatoon was $362,973 as of October 3rd, which is up +5% compared to this same time in 2020.
The point we wanted to make is that sometimes you have to dig a little deeper into the National news headlines. You might hear that Canada’s housing market is headed for trouble, but when you zoom into Saskatoon’s statistics, our market conditions are actually much more favourable.
This is why it's always best to reach out to us if you see an article on the news and you have questions as to how it relates to our local market. We are happy to go over the data with you to give you a more accurate picture of our market landscape.
Here are the stats from the past month in Saskatoon…
In August, there were 492 homes sold, which represents an increase in sales of 7% compared to August 2020, where we saw 460 sales.
Currently there are approximately 1401 active listings on the MLS. Out of the total listings 821 are single family homes 583 are condos. Out of the 583 condos 204 are townhouses and 365 are apartment style.
735 new listings were posted in August which is down 5.8% compared to August 2020, where we saw 780 new listings.
The average sale price in August 2021 was $365,071. This is an increase of almost +6% YTD compared to this same time in 2020.
In Real Estate, we often talk about there being two main busy seasons each year. The first one is typically from March to the end of June and the second one is from September to the end of October. Now that summer holidays are over, and kids are back in school, people are looking to move before the weather gets cold and they are too busy with the holiday season.
As a seller, this makes it a good time to have your property on the market as there is an increase in buyers looking for homes.
As a buyer, this is a good time to purchase a home as there is still a relatively large supply of inventory in the market, and there's more to choose from than there might be in the cold winter months ahead.
Even though we aren’t quite ready for summer to be over, we are getting closer to cooler temperatures and the fall real estate season in Saskatoon. We are going to share what we can expect from the rest of the summer real estate market and how we think it might change as we move into the fall.
But first, Let's look at the stats from the past month...
In July, there were 488 homes sold, which represents a slight decrease in sales of 10.8% compared to July 2020, where we saw 547 sales. Keep in mind that sales in July 2020 were extremely high, and even the 488 sales we saw this month is still 25% more than July 2019. Even though this is the first month in 2021 where sales have been down a bit, compared to a regular year, like between 2017 - 2019, these sales volumes would still be considered very strong.
Currently there are approximately 1464 active listings on the MLS. 758 of those were new listings posted in July which is down 7% compared to July 2020, where we saw 816 new listings.
The average sale price in July 2021 was $366,416. This is an increase of almost +7% YTD compared to this same time in 2020.
In the first half of 2021, we saw an extremely HOT sellers market in Saskatoon with high sales volumes and low listing inventories.
With more and more restrictions being lifted in Saskatoon, things are starting to feel a bit more normal. We are starting to see people get back to their regular routines by going out to dinner more regularly, planning fall and winter vacations and spending more money on entertainment. This increase in spending may be resulting in less funds available to spend on real estate and might be contributing to sales slowing down a bit.
This is good news for buyers, because based on the rules of supply and demand, if sales start to slow down, and inventories start to rise, that creates a greater selection of homes to choose from in Saskatoon for buyers. So if you’ve been waiting to pull the trigger on buying a new house, this fall might be the perfect time to start searching for your dream home. Reach out to us and we would be happy to get a plan in place to start your home search.
For sellers, low interest rates continue to support a strong sales market. There are lots of potential buyers looking to upsize, downsize, or to buy their first home.
As always, if you would like any information on buying or selling your home in Saskatoon, don’t hesitate to contact either one of us.
Summer is almost officially here, and the weather is getting hotter in Saskatoon! Can we expect the summer real estate market to stay hot as well?
Our Summer 2021 Real Estate Market Preview is here! We are going to review the stats from the past month, and share our predictions for the summer season, and what you need to know if you plan to buy or sell.
Let’s take a look at the stats from May 2021...
Home sales are very strong
In May, there were 576 home sales which represents an increase in sales of +77% compared to May 2020 where we only saw 326 sales.
This is the third month in a row where sales have been over 500 homes - there were 570 sales in March, 550 in April and now 576 in May. This is an unusually high volume of consistent sales. The big question is, will this be able to continue?
If we try to determine the possible underlying cause for these consistently strong sales volumes, we could use the theory that COVID-19 has left many people with more disposable income right now as they aren’t spending money on things like vacations and going out. People have also been at home more, and have become more aware of some of the limitations to their existing spaces, like a lack of home office space, or recreation space. More people have the money available right now to consider upgrading their space to something that solves those problems.
This means that when things start to return to normal, with more vaccinations, and the relaxing of all of the restrictions, and people start spending what they used to spend, or more, on vacations and going out, this could result in less funds available to spend on property.
This leads to our prediction that this strong market will likely continue over the next couple of summer months while COVID-19 restrictions are still in effect, but as things relax in the fall we could see a softening of the market.
Inventories are going up
2021 started with extremely low listing Inventories, but we have seen an increasing number of listings being added to the MLS each month. There are currently approximately 1544 active listings on the MLS. There were 1015 new listings posted in May which is up +34% compared to May 2020, where we only saw 755 new listings.
When you consider the supply and demand equation, the more listings there are available in the market, the more competition there is for your property. If the number of listings continues to rise, this will eventually slow down the sellers market a bit. But we don’t expect to see this until closer to the fall.
Home prices surge
We’ve also seen a consistent surge in home prices over the last several months. In January, we started the year with an average sales price of $348,352, then $353,542 in February, $362,222 in March, $372,532 in April, and then $386,578 in May. May’s average sales price is an increase of almost +7.6% MTD compared to May 2020.
Part of the reason for this surge in average home prices is the significant increase in sales in homes over $750,000. In May, there were 6 homes sold that were worth over a million dollars. This is an unusually high volume of sales in that price category for one month. This increase in high worth property sales, does influence the average sales price overall.
So...after reviewing the stats from May, and our predictions for the rest of the summer, what does this mean for you as a buyer or seller?
What does this mean for you?
As a seller, it means that you should consider getting your home on the market sooner rather than later, as right now is still an IDEAL time to list your home in Saskatoon.
We are optimistic that this hot market will likely continue over the next few summer months, but once things start returning to normal we predict it might be hard for these current market conditions to continue. So to reiterate NOW is the time to get your home listed! Don’t wait!
For buyers, we are seeing more and more listings being posted to the MLS. This means there continues to be more selection for you to choose from when searching for your dream home. We can help guide you in the offer process to ensure you have the best chance of getting the home you want, when you find it.
As always, if you would like any information on buying or selling your home, or about the real estate market in general in Saskatoon, don’t hesitate to contact either of us.
2021 started off with a very busy real estate market in Saskatoon. We want to share why we think this means it's the perfect time to sell your home in Saskatoon, and what you need to know about the real estate market right now as a buyer.
Sales volumes and average sales prices have steadily increased and home inventories have continued to stay low in Saskatoon. Let’s take a look at the stats.
In April, there were 550 home sales which represents a staggering increase in sales of +159% compared to April 2020 where we only saw 213 sales. But keep in mind that this number is highly exaggerated as our real estate market was heavily impacted by the start of the COVID-19 pandemic last April and this skews the numbers dramatically. To get a more accurate sense of how the market is doing, we should compare the home sales from April 2021 to home sales from April 2019, where we saw 380 sales, which is an increase of +45.5% compared to 2021. This is still a significant increase and demonstrates how strong the market is performing.
Inventories have also stayed fairly low over the last several months due to high sales volumes, but we have seen an increasing number of listings being added to the MLS. There are currently approximately 1400 active listings on the MLS. There were 958 new listings posted in April which is up +96.3% compared to April 2020, where we only saw 470 new listings. But again, to get a more realistic picture, we should actually compare these numbers to April 2019 where we saw 777 new listings posted which compared to April 2021, is only an increase of +23.3%.
We’ve also seen a consistent surge in home prices over the last several months. In January, we started the year with an average sales price of $348,352, then $353,542 in February, $362,222 in March, and then in April it was up to $372,532. April’s average sales price is an increase of almost +8.3% YTD compared to April 2020 and an increase of +10.4% YTD compared to April 2019.
So...after several consistent months of these HOT market conditions, what does this mean for you right now as a buyer or seller?
It means that it is an IDEAL time to sell your home in Saskatoon. The combination of elevated average sales prices, extremely high sales volumes and low listing inventories has created the perfect storm for sellers. Especially, if you have a home that fits into a couple of specific categories in the market.
Homes between 350K - 500K are in VERY short supply right now with a 1.7 months supply. Anything below a 3 months supply is considered to be a sellers market in that price range. We are consistently seeing homes in this range sell extremely quickly and with multiple offers. If you have a home to sell in this price range, do not hesitate because NOW is the time to get it on the market. It will sell fairly quickly.
In April, there were 90 homes sold between 500K - 750K. This is a historically high volume of sales in this price range. If you’ve been waiting for the right time to sell your home in this price range, NOW is the time to take the leap and get it on the market.
We are optimistic that this hot market will likely continue over the next couple of spring/summer months, but once things start returning to normal with more and more vaccinations, and temperatures start to drop in the fall, it's hard to predict if these market conditions will be able to continue. So to reiterate NOW is the time to get your home listed!
Now more than ever before, with the market as hot as it is right now, it’s important to rely on a realtor you trust for guidance.
For buyers, we have been seeing multiple offer situations, and some homes selling over ask. We can help guide you in the offer process to ensure you have the best chance of getting the home you want, when you find it.
For sellers, in this vibrant market, we will help you create an effective strategy for marketing, pricing, and negotiations, as transactions aren’t as cut and dry as they might have been before.
As always, if you would like any information on buying or selling your home, or about the real estate market in general in Saskatoon, don’t hesitate to contact either of us.
Spring has finally sprung, and we’ve come to the end of the first quarter of 2021. This year has already proven to be an extremely busy one in the Saskatoon Real Estate Market.
We are commonly asked the same question by many of our clients:
“We’re ready to start looking to buy a new home...what are the next steps we should take?”
So we thought we would take some time to go over the initial steps you need to take in the house hunting process. But first, let's quickly go over the stats that were just released from March. One thing to keep in mind when looking at these stats, is that in March of last year we experienced the beginning of the COVID-19 Pandemic.
Saskatoon Market Statistics - March 2021
Last month, there were 570 sales, which is +297 more sales compared to March of 2020.
There were +926 new listings posted to the MLS in March, which is up +53.8% for the month compared to 324 new listings in March of 2020.
There were 1278 active listings in Saskatoon as of April 5th, 2021. 639 are single family homes, and 639 are condos. Out of the 639 single family homes, 401 are on the eastside and 238 are on the westside.
Home prices are up +7.34% compared to this time last year. The average sale price is $356,505.
All of these stats demonstrate what a busy market we are currently experiencing. So, if you’re ready to buy a new home in this market, you need to be aware of what your next steps should be.
Did you know, when you work with us to purchase a home, you will not need to pay any fees for our services on the purchase. The home seller actually pays the full commission for the services of both their own listing agent and the buyer's agent.
Ok, so what is the first step in the house hunting process?
Step 1 - Get Pre-approved
We often have clients come to us who are ready to buy a new home and they may have arbitrarily chosen a maximum purchase price. But this number isn’t always based on what they can afford or what they might actually be approved for.
So we highly recommend getting pre-approved for a mortgage before you even start your house hunt. This will help you determine your price range of homes you should be targeting in your search.
Your lender will look at your income, your debts and the cash you have available for a down payment. You will have to provide documentation to prove your income and credit history. Based on this information your lender will be able to advise you on your maximum purchase price. But you should also discuss with them, what that purchase price looks like as a monthly payment, and what you are realistically comfortable spending every month.
Your lender will provide you with a mortgage pre-approval in writing (it will likely be valid for 90 or 120 days) and will generally include an interest rate guarantee.
Step 2 - Refine your wishlist
Taking the time to identify what your needs and wants are is a critical step in the house hunting process.
Distinguishing between what is must-have, and what is a nice-to-have will help you narrow down your search and help you to determine which is the right house to put an offer on.
Step 3 - Start the search online
Starting to explore listings online can help you adjust your expectations on what you might actually get in a home within your price point in the current market.
Once you have determined your budget and wishlist for your ideal home search, we will set you up with an auto-email. This is a customized search of the entire MLS database for listings that match your criteria. Once the system finds a listing that matches your criteria, you will receive an email with a link to your own personal portal to view the listing data. This will ensure that you are notified immediately when a matching property comes on the market so that you won’t risk missing out on the perfect home.
We have also developed relationships over the years with an extensive network of seller's agents in Saskatoon. We are always keeping an eye out for homes that might work for you, even if they haven’t hit the market yet.
You can also start looking at listings online for yourself.
Realtor.ca is a website owned and managed by the Canadian Real Estate Association. The website allows you to search for available properties for sale directly from the MLS. It is good to note that the realtor.ca website is usually a day or two behind what’s happening in the market, so you are better off getting listings sent to you directly from us, but it can still be a good tool to explore what’s available in the market.
On our website, www.taitrealestate.ca we have a great MLS listing search tool that is super easy to use and includes a lot more information than what you’ll find on realtor.ca.
Step 4 - Start viewing in person
Now that you know your budget, you’ve defined your wishlist, and you’ve done your research on what to expect from the current market, you are in the best position to start viewing homes more seriously.
A property can look perfect on paper, and you can be lured in by the glossy photos, but you won’t really know if it's the right home for you until you check it out in person.
Once you’ve identified some listings that you think match your wishlist, we will contact the selling agents directly to set up appointments for us to view the homes. To view a listing in person, you have to be accompanied by a licensed Realtor. This is your opportunity to get a feel for the neighbourhood, the location, and ask any questions you might have about the property.
After two months into the new year, 2021 is continuing to showcase an extraordinarily busy real estate market in Saskatoon.
In February, home sales were up +53% for the month with 352 sales compared to 230 sales in February of last year. That’s 122 more sales during this same time.
Home prices were up 10.4% compared to February 2020. There were 1099 active listings in Saskatoon as of March 1, 2021.
This busy market can make finding a home to purchase more complicated, so this month we wanted to share some insights about what we think is a great home buying option to consider by buying a brand new home through a reputable home builder.
Both Jamie and I have extensive knowledge of residential home construction and renovations. I have over 25 years experience in residential construction as a general contractor and Jamie started his career as a journeyman carpenter.
After working as a carpenter, I eventually decided to transition my skills and knowledge of residential construction into real estate. I have been specializing in new home sales with various home builders over the past 10 years.
Ross and I have represented North Prairie Developments at the Meadows in Rosewood for the past 3 years. We would like to share the top things we think you need to know about buying a home from a new home builder.
1) The benefits of brand new construction
When you buy a new home through a builder, compared to buying a used home, you get the benefit of everything being shiny and new. No one else has ever bathed in your tub or used your toilets and you will be the first person to use your home appliances.
You will likely have to compromise less and you will get more of what you want compared to buying a used home, since you can choose the layout and finishings that suit your needs.
You also get the benefit of having a new home warranty. This means that if you experience any issues with your home it will be covered by your warranty within a certain time period. This will give you peace of mind when you move in knowing that you won’t experience any unexpected costs to repair that you might have if you bought a used home.
2) Prepare for some additional expenses
Typically in a new build, your basement will come undeveloped. If you know you need the extra living space or you’re planning to create an income suite in your basement, you will need to expect to pay more for the builder to develop this space for you, or you could hire a contractor to develop it after you move in.
Also, the level of development will vary in your front and back yard depending on the builder you choose. For example, when you purchase a new home with North Prairie Developments at the Meadows in Rosewood, your home automatically comes with front landscaping and a concrete driveway. With other builders in the city, you may have to pay extra to have those items included in your purchase price, or you may have to pay to have them completed after you take possession.
You should expect to spend some additional money on various projects around your home after you move in depending on what is included with the builder you choose, such as building a deck or fence, backyard landscaping etc…
3) Building your dream home takes time
Home Builders can sometimes have pre-built spec homes that are available to be purchased with an immediate possession. In this type of new build, you won’t get to customize the home to your taste or specifications. Currently, the inventory of pre-built spec homes in Saskatoon is very low, so you are more likely to have to wait and build a custom home.
In Saskatoon, it typically takes around 4-6 months for a custom home to be built. You will get to choose from a variety of floorplans at various sizes and price points. Depending on the builder, you will also likely get to select the finishings that you want to see in your dream home.
Once you have selected the home you want to build you will submit an offer on the home. The deposit required in a new build is generally between 5 - 10% of the purchase price which is a bit higher than the typical deposit required on the purchase of a used home. This deposit will likely need to be paid to the builder once your conditions have been removed. The home will also start to be built once your conditions are removed.
4) Work with someone who specializes in new home sales
If you are looking to sell your existing home and buy a new home build, you should work with someone who knows the in’s and out’s of the home building process.
As Realtors who specialize in new home sales, we can help you to:
Navigate the planning and building process
Strategically plan when to list your existing home
Negotiate a possession date that will work within the time frame of your new home build
This way you can seamlessly transition from one home to the next.
If you are interested in getting any more information on how to get started, please reach out to us and we’d be happy to help!
The first month of 2021 was a very busy one! We want to provide you some statistics that show you what we’re experiencing in the market right now, and share our top 3 tips on how to best navigate this fast moving market.
In January, home sales were up +26.9% for the month with 278 sales compared to 219 sales in January of 2020. That’s 59 more sales during this time.There were 1026 active listings in Saskatoon as of February 1. 496 of those listings are single family homes, and 530 are condos. Out of the 496 single family homes, 300 are on the eastside of Saskatoon, and 196 are on the westside.
These statistics show that, for example, if you were planning to list your single family home on the eastside of the city, you would only be competing with a maximum of 300 other listings. But that number is actually significantly lower than that once you filter out price ranges and specific neighbourhoods/areas. Right now your listing will be competing against a very small number of other listings, which could increase your chances of a quick sale.
The other important statistic to note is that the average sale price is up +6.8% compared to January 2020.
With the type of market we are experiencing right now, it's a great time to consider moving up. For example, if you’re looking to move from a condo to a single family home, or purchase a home with a bit more space, now is the time! The low inventory and the increased sales prices make it an ideal time to list your home, but on the buying side, you will need to work with your agent to come up with a solid plan of attack to find and secure your perfect new home in this busy market.
We’ve come up with our top 3 steps you need to take to buy or sell in these current market conditions:
1) Be ready to move FAST if the right listing pops up.
Whether you have an existing home to sell, or you’re a first time home buyer, the first step in the home search process is getting mortgage pre-approval. This will ensure that once you find your ideal new home, you already know that you are in a good financial position to make a strong and confident offer.
2) Get your home prepared to sell early
Complete any home repairs or renovations that are required to sell your home. If you’ve been needing to repair your trim and baseboards, or repaint a couple of walls, get it done as early as possible so your home is in the best condition to sell.
Get your home clean, decluttered, and depersonalized. A buyer should be able to immediately envision themselves in your home when they walk through the door. If you are considering using a professional stager, make sure to get them lined up early.
Once your home is looking its best, arrange to have your professional photos taken early. At Tait Real Estate, we always include professional photos with a real estate photographer when you list with us. Having these taken early will allow us to get your listing on the MLS as quickly as possible.
3) Write a personal letter to the seller
In competitive markets like we are experiencing right now, multiple offer situations are common. To stand out from the crowd, we suggest that you write a personal letter to the seller explaining who you are, and why their home is the perfect fit for you and your families needs. This will hopefully build a connection with the seller and tip the scales in your direction.
If you have any more questions about the current market, about Saskatoon, or are interested in getting a plan in place to buy a new home and maybe also sell your current one, reach out to us anytime and we would be happy to go over everything with you.
Happy New Year everyone! I’m sure we aren’t the only ones who are happy to welcome 2021 with open arms.
In our last market update we predicted that early 2021 would bring reduced inventories and a strong sellers market in Saskatoon. We want to share with you, if our predictions were right and what this means to you as a buyer or seller.
We ended 2020 with a very strong month in the Saskatoon Real Estate Market. There were 274 home sales in December, which means that sales were up 35% for the month compared to December of 2019, which only saw 203 home sales. That’s 71 more sales during this time.
In December, we also saw 347 new listings posted to the MLS, which means listings were up 14% for the month compared to December of 2019, which only saw 304 listings posted.
The average sale price in Saskatoon right now is $345,358 which is up 3.4% compared to December 2019.
As we predicted in our last market update, inventories are at an all time low. Back in December, we predicted there could be as low as 899 active listings in Saskatoon as of January 2, 2021. We were pretty close with our prediction… because as of January 4th there are 940 active listings in Saskatoon.
The reason we are experiencing this low inventory, is because of a high volume of home sales compared to the number of new listings. Even though we saw more listings in December this year than last year, it still isn’t keeping up with the number of sales in Saskatoon.
472 of those are single family homes, 272 are apartment style condos and 196 are townhouse style condos. Out of the 472 single family homes listed, 272 are on the eastside and 200 are on the westside.
We wanted to break this down for you to demonstrate, for example, that if you are thinking of selling a single family home on the eastside of Saskatoon, you would only be competing against 272 other homes on the eastside. This number would get even smaller when you start to narrow down other criteria such as neighbourhood, home style, number of bedrooms and baths etc…
What this means is that right now listings are like GOLD. This is the time to get your home on the market. There is no reason to hesitate or wait for the spring market. With the extremely low interest rates available, there are many motivated buyers actively searching for homes in Saskatoon right now.
Based on the current market conditions you will want to rely on us as your Realtors to guide you through this limited inventory. We have a wide network of contacts in Saskatoon who we rely on to get the most up to date listing information that we will share with you.
As always, if you would like some more information, or are interested in buying or selling a home, reach out to us and we would be happy to help.
We’ve made it to the last month of 2020, and what a crazy year it has been. Looking back over the last 12 months it feels like we’ve been on a crazy roller coaster ride. This is especially true when you review the past year in the Saskatoon real estate market.
2020 started out pretty strong from January through March and then when COVID-19 hit in April, it felt like the market came to a standstill. At that time, we weren’t sure what the rest of the year in real estate might look like in Saskatoon.
After another slow month in May, I don’t think either of us could have predicted the rocket-like trajectory the market would take for the rest of the year.
The month of June kicked off the strong market in Saskatoon and it continued to get stronger each month after that. Our monthly sales were consistently and significantly higher in comparison to the sales in 2019.
This past month was no exception. There were 358 sales in November 2020 compared to 243 sales in November of 2019. This is 115 more sales which means sales are up +47.3% for the month and +17.1% for the year.
Looking forward, what can we expect in 2021? There is no precise, crystal ball that can predict the future, but we are feeling confident that Saskatoon's strong market will continue into the new year.
I think one of the main things we are predicting in the first couple of months of 2021 will be a reduced inventory of listings in the market.
There are currently 1123 active listings in Saskatoon. 625 are single family homes, 498 are condos, of which 275 of those are apartment style.
Between now and January 2, 347 of those listings are expected to expire. Some of those expired listings may be renewed, but if we base our projections on historical info from 2019, we can likely expect 207 home sales and 330 new listings in December 2020.
When you do the math, this means there could be as few as 899 active listings as of Jan 2. We believe this number is aggressively low, and we expect listings to be higher than this, because of the strong market and low interest rates.
We believe this means that listings are going to be like GOLD in the first couple of months of 2021. Historically, spring is thought to be the start of the busy season in real estate in Saskatoon. Although, the past year has proven that you shouldn’t expect things to be status quo.
Moving into 2021, If you have a home to sell, we strongly feel that there is no reason to wait until spring to get your home on the market, as listings will be in very high demand, especially for single family homes.
If you’re looking to buy a home in early 2021, you will want to rely on your Realtor to guide you through the limited inventory. As Realtors, we receive hourly updates when new listings go on the market, which is considerably faster than commonly used websites and apps that may only update every 24 hours or more. We also have a wide network of contacts in Saskatoon who we rely on to get the most up to date listing information, sometimes even before a home hits the MLS.
So as always, if you have any questions please reach out to either of us, we would be happy to help. From our families to yours, we hope you have a very Merry Christmas and we hope to see you in the New Year.
With the cooler temperatures outside, you would normally expect to see the real estate market cool off...but that is not what we saw this past month.
In October we saw 430 home sales, which is a super high number for this time of year. This is actually the same number of sales we saw in September.
Historically at this time of year, things begin to wind down, social activities begin, and the market starts to cool off. For example, in October of 2019, we only saw 307 home sales. So that means for this October we are up 41.5% in homes sales compared to last year.
We commonly hear from clients that they think they should wait until spring to get their home on the market...but we want to show you why we think December is actually a great month to sell your home.
To prove our point, we wanted to collect some historical, end of the year data...and after digging around a bit, we found a trend that we had to share.
We went back a few years, and decided to look at sales to listings ratios. Sales to Listing Ratios measure supply and demand by simply dividing the number of sales by the number of new listings. It is a good indicator of the speed at which homes are selling.
In 2017, the sales to listing ratio for the year was 38.9%, but in the month of December the sales to listing ratio jumps to 63.8%.
In 2018, the ratio was 41.7% for the year, but 52.7% in December.
In 2019, the ratio for the year was 46.5%, but then 67.2% in December.
When you average out those 3 years, you have an average sales to listing ratio for the year of 42.4%, but in December the average is 61.2%.
This means, over the last three years, December has provided homeowners a 18.8% greater chance to sell their home compared to the rest of the year.
In 2020, COVID-19 may impact the sales to listing ratio even more, as we’ve already seen that October was a very strong month. We may find that December proves to be once again a stellar month, and it could be a great opportunity to sell your home.
If you have a home to sell, there is still time to get your home on the market to take advantage of the December upswing. If you have any questions about this, or specifically about your home, we would be happy to go over everything with you.
After three months of an extremely HOT real estate market in Saskatoon, we are cautiously optimistic that this upward trend may now be here to stay for a while. We want to share why we think this means it's the perfect time to sell your home in Saskatoon, and what you need to know about the real estate market right now as a buyer.
As the summer began, after the first initial shock of COVID-19, we started to see the real estate market heat up. At that time, we both thought that the increase may have been just an initial reaction to the pandemic, and that these conditions might not last very long.
However it looks like it might not be as short term as we initially thought. Sales volumes and average sales prices have steadily increased and home inventories have continued to stay low.
In June, home sales were up +37%, and then in July they were up +41% and now once again in August they are up +41.9% for the month and +8.84% for the year. This past month there were 461 sales, as compared to 325 in August 2019, which is 136 more sales during this time.
We’ve also seen a consistent surge in home prices over the last three months. In July, the average sales price was up +5.6%. This past month, the average sales price was up +9.6% for the month of August and +4% for the year.
Inventories have also been consistently low over the last three months. In July listings were down 9% for the year, and this past month listings are down once again -6.9%.
After three consistent months of these conditions, we are starting to feel cautiously confident that this isn’t a fluke, and that this hot market may continue even into early 2021.
So...what does this mean for you?
It means that it is a GREAT time to sell your home in Saskatoon. Especially, if you have a home that fits into a couple of specific categories in the market.
Homes between 300K - 500K are in very short supply right now. It is a sellers market in this price range, and we are seeing homes on the market sell extremely quickly and with multiple offers. If you have a home to sell in this price range, this is the time to get it on the market.
Detached condos are also in very low supply. There were only 19 active listings in this category in August, and there are active buyers waiting for properties to purchase.
There were 67 sales of homes over 500K in August. This is a very high volume of sales compared to the last couple of years. If you have been waiting to sell your home in this category, now is the time to take the leap and get it on the market.
The other factor that is heating up the Saskatoon real estate market is extremely low mortgage rates. This is great news for buyers, as it makes affording a new home that much easier.
We recently chatted with Deb Murdoch, a mortgage broker from TMG (The Mortgage Group) about what she has been seeing for rates.
The Best 5 year fixed rate is 1.89% If your purchase price was $350,000 & your down payment was 5% your resulting bi-weekly accelerated payment would be $723 ($1446/month).
The Best 5 year variable rate is 1.8% (prime - .65%) If your purchase price was $350,000 & your down payment 5% your resulting biweekly accelerated payment would be $715.573 ($1431.14/month)
Her recommendation is to take a 5 year fixed rate as it is guaranteed for 5 years.
She told us that she has been hearing that the interest rates are going to stay low until 2023. Maybe not as low as they are right now, but still low. OSFI, Canada’s banking regulator is starting to make some changes (ie: mortgage deferrals) due to the economy right now, so we would expect slight changes as we go along.
Now more than ever before, with the market as hot as it is right now, it’s important to rely on a realtor you trust for guidance.
For buyers, we have been seeing multiple offer situations, and some homes selling over ask. We can help guide you in the offer process to ensure you have the best chance of getting the home you want, when you find it.
For sellers, in this vibrant market, we will help you create an effective strategy for marketing, pricing, and negotiations, as transactions aren’t as cut and dry as they might have been before.
As always, if you would like any information on buying or selling your home, or about the real estate market in general in Saskatoon, don’t hesitate to contact either of us.
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