September Saskatoon Real Estate Market Update
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.