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.

Should I Refinance My Mortgage?

I think we can safely say that 2020 has been a strange year. A year of lockdowns due to a pandemic, financial support from the government, and the lowest interest rates in recent history. This has led to a rise in the number of homeowners who are considering refinancing their mortgage. According to a recent poll, approximately 20% of Canadian homeowners say they plan to refinance their mortgage in the next 12 months.

Like all financial decisions, it’s important to look at the bigger picture, which includes reviewing your goals.

First Things First -- What’s a refinance?

A refinance alters the terms and conditions of your mortgage – it’s essentially a new mortgage. Specifically, you are increasing the amount of your mortgage, whether to pay off consumer debt, finance a renovation, invest, or to get a lower rate.

Here are a few reasons to opt for a refinance:

1. Decrease your overall monthly debt payments by using the equity in your home to pay off those high-interest credit cards or unsecured loans.
2. Lower monthly mortgage payments. A borrower may be able to lower their monthly payments by either securing a lower mortgage rate or by extending their loan term, which would spread their payments out over a longer time period. This can be important for those with a tight monthly budget and who are looking for additional financial breathing room.
3. You can refinance to purchase another property. Using the existing equity in your home can be a great way to buy a rental property which, if done right, can also make the interest you pay tax deductible.
4. You could also take out some of the equity for investment purposes -- an option that many homeowners consider this time of year as they look ahead to the new year
5. And there are more uses for your equity such as helping putting your kids through school.
6. You can also finance a renovation or home improvements.

Repayment – What You Need To Know

Borrowing against your property is not free money – it’s a mortgage loan -- and like any other loan, it has to be repaid.

Speak to a Professional to Understand Your Options

There are many factors to consider before deciding to refinance. Each individual’s financial situation is different. Let’s talk about your unique situation and the options available to you.

Call Deb Murdoch today!

Deb Murdoch

The Mortgage Group

306.222.7900

debm@mortgagegroup.com

The housing market doesn’t come to a standstill during the holidays. In fact, we’ve found that December is actually a great month to sell your home. Although, selling your home through the holiday season can come with a few additional things you should consider. In addition to all of the regular things you need to do to prepare your home to sell quickly, like cleaning, depersonalizing and decluttering, you will also need to consider whether or not to decorate for the holiday season.

We think that the holidays are a perfect time to showcase the warmth and character of your home to prospective buyers. We don't think that you need to avoid decorating altogether, but that you should follow some simple tips to ensure your house looks it’s best for prospective buyers.

Here are some tips for decorating for the holidays when you are preparing to sell:

Less is More

Follow the “less is more” theory when it comes to decorating this season. Too many decorations can be overwhelming and distracting. Minimizing the amount of decorations you use will make your home feel more spacious and inviting.

If your space is full of clutter and decorations, prospective buyers will have a hard time seeing past it and envisioning your home as their own.

This is true on the exterior of your home as well. Holiday decorations are a fantastic way to add curb appeal and pleasantly welcome your potential buyers. Just try to avoid embracing your inner Clark Griswold. Too many flashing lights and large ornaments might be fun and playful, but they may distract or turn off a potential buyer.

Think smaller

You need to be very thoughtful about the size of decorations you use. For each item, be honest with yourself and ask whether it helps to showcase the space or actually detracts from the room's best features.

Your overall goal is to add some festive cheer and warmth to the space without detracting from the main features of your home. This might mean that you tone down the size of your christmas tree. Large trees and decorations, while festive, may make the room look smaller. Choose an oversized tree only if you have a really large room.

Go neutral or coordinate colors

You want every room of your home to be as appealing as possible to prospective buyers. So, if your favorite holiday decorations clash with the existing colors in your room, think twice about using those decorations this year.

Consider using neutral tones and metallics, such as gold, silver, copper, white or cream. These colors compliment almost every existing decor and is a great way to add class and charm. Think about replacing any multicolored tree lights with white lights for a more neutral and elegant feel. If you are still planning to use the traditional red and green tones, try using more red than green - scientifically, red is emotionally, a more appealing color.

Don’t make it too personal

When preparing your home to sell, you need to keep in mind that buyers want to be able to walk into your home and easily envision themselves, and their belongings, in the space. This means that your holiday decorations shouldn’t be overly personal.

Keep your decorations secular to avoid putting off potential homebuyers of different religions. Avoid displaying family photos, heirlooms and kids' crafts. Stick to more generic holiday decor, and try to create an overall festive ambiance. A good trick is to simmer some apple cider on the stove or bake some holiday cookies before your showing.

In conclusion, we believe that you can still enjoy decorating this home for the holidays even when you're preparing to sell. If you strike the right balance, and follow the tips we outlined above, your home will radiate warmth and charm that will appeal to potential buyers and help them to imagine living there. Enjoy what may be your last holiday season in your home.

Happy holidays!

Revisiting Fixed Vs. Variable Mortgages

It’s the classic rate decision many mortgage shoppers are faced with. And it’s only been made more complicated since the start of the pandemic. Towards the latter half of 2019, variable rates were flying off the shelves with rates as low as prime – 1%. A lot has changed since then.

In March, fears over the COVID-19 pandemic and the subsequent lockdown forced most banks and other mortgage lenders to cut their fixed rates from 3.95% to 2.45% within the span of just one month. At the same time, variable-rate discounts were scaled back to just prime – 0.15% to 0.25%. By the summer fixed rates were setting historic lows. That led to a dramatic shift in mortgage selection by borrowers.

Why the shift in mortgage preference?

First, the fixed rate mortgage is among the most competitive mortgage products on the market. And many believe variable rates have no more room to fall, given that the Bank of Canada’s overnight target rate is holding at 0.25%.

Second, homebuyers are attracted to the stability that fixed-rates offer. They can lock in a rock-bottom rate for five full years.

The outlook

The Bank of Canada, in its recent Monetary Policy Report, suggested that rates won’t be rising until at least 2023, which is when inflation is expected to return to full capacity. Some forecasters, such as those at TD Bank, don’t expect the first-rate hike until 2024.

With forecasts like that both variable and fixed could be good options.

If you are in the process of shopping for a mortgage and are undecided whether to take a fixed or variable rate, I can help you understand the pros and cons and offer personalized solutions.

If you need additional information on this topic, please feel free to reach out to me at 306.222.7900 or debm@mortgagegroup.com

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.

Thanks and have a great November!