We’ve recently seen several national news headlines talking about how Canada’s housing market is declining and home sales and prices are dropping.
So should you be worried? What does this really mean for you?
This month, we are going to dig into the news headlines and share what you really need to know about the current market conditions.
Here are some National Headlines from the past week:
- A Global News article stated that “Canadian home prices were down 23% in July from February peak”
- The Financial Post had a headline that said “Bottom still a ways off for Canada's housing market”
- CTV News posted that “Canadians cope with a correcting housing market”.
If you were to rely on these national headlines alone for market information, you would likely conclude that market conditions all over Canada are declining rapidly. But you need to keep in mind that all of these headlines are based on National averages, not data specific to Saskatoon and surrounding area. We want to show that when you focus more locally, into the Saskatoon real estate market specifically, the statistics definitely tell a different story.
For example, when you compare the change in average sales price from July 2021, to July 2022 on a National level the stats show that prices have gone -5% across Canada.
But when you zoom into Saskatoon’s market, average prices have actually increased by 6.5% over the last year. That's an 11% swing between the national averages and the local Saskatoon averages. So this is just one example of why you shouldn’t always rely on national headlines to guide local market decisions.
Also, when you compare Saskatchewan’s housing prices compared to pricing across the rest of the country, Saskatchewan is actually the third most affordable province in all of Canada. In June 2022, the average home price in Saskatchewan was $333,400.00. In BC the average home price was a whopping $947,216.00 and in Ontario it was $881,475.00. You could almost buy 3 homes in Saskatchewan for the price of one home in BC or Ontario.
When you look at predictions for the housing market, many experts will agree that nationally we can expect to see the average home price decrease by as much as -12% by the Spring of 2023. In markets like BC and Ontario, RBC has stated that they think we could see declines that exceed 14%, but in Saskatchewan we will likely only see dips in prices of around 3%.
So just remember, the next time you hear a national news headline that is claiming that the sky is falling and the housing market is headed for the toilet, remember that you need to look closer into your local market statistics here in Saskatoon to get a better picture as to what is really going on and how it will affect you.
If you see an article on the news and you have questions as to how it relates to our local market, we are always happy to go over the data with you to give you a more accurate picture of our market landscape.
Contact Us:
Tait Real Estate - Realty Executives Saskatoon
Jamie Tait - 306.203.0004 - jtait@realtyexecutives.com
Ross Tait - 306.230.2338 - rtait@realtyexecutives.com
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