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.
Thanks and see you next month!
Tait Real Estate
Jamie Tait - 306.203.0004 - email@example.com
Ross Tait - 306.230.2338 - firstname.lastname@example.org