AUGUST 2020 MONTHLY REAL ESTATE IN REVIEW
The Real Estate market in Saskatoon sets record numbers for the summer of 2020 and August was no different. The amount of sales are up 41.8% over last year at this time and year to date up 8.9%. The sales dollar volume saw a large increase of 55.5% over last August and is up 13.3% for the year. New listings had an increase of 7.7% compared to last August but down 6.4% for the year. With all this demand the sale price actually rose 8.7% in August and is up 2.9% for the year. This unexpected activity continues to be fuelled by the all time low interest rates. Minimal supply of product within the market. And people needing more space with COVID-19.
IT’S A BUBBLE:
The real question everyone should be asking is how long this so-called ” bubble “ will last. The Bank of Canada has certainly stimulated the market with shockingly low interest rates and it’s worked judging by our current market.
There are a couple factors to consider when looking at how the market could adjust in the near future. The first is if businesses can survive when the wage subsidization ends at the end of the fiscal year. If not this will certainly have a trickle down effect in our economy. The second is if we see an increase of new Covid-19 cases as everyone gets settled in our new routines and the children are back in school. If we see a spike in either of these areas it will have effects on our market.
WHAT ABOUT PURCHASING
We are obviously hoping for the best but still cautioning people to live well within their means when purchasing. By saying that we see no indications that this market activity will slow down until possibly the new year or we have a spike in Covid-19 cases.
For those looking to sell, it is certainly a great time to do so as we move into fall. It typically is one of the most active times of the year as everyone is back from holidays and wants to move prior to the winter months with this year being no different.
If you’re looking to buy, it might be time to wait depending on your situation and what type of property you are looking to purchase.
As always, in any market, we can help! When selling your home it is crucial to price at market value and have your home ready to show. The proper decluttering, staging, professional photographer and marketing is also a must in our current market to help buyers see value.
If you need help buying or selling our team is here to help!