Even with interest rates on the rise, Saskatoon still see’s the demand for residential real estate out way the supply. Property values hold strong as inventory levels remain low.
The Saskatoon Real Estate Market
In August the buying frenzy seemed too slow with interest rate hikes and property values increases. Although activity remained strong through all sectors of the market. Buyers are just being more cautious as expenses continue to increase across the board. There still is a level of urgency for buyers because of the lack of inventory to purchase or even rent.
August 2022 Monthly Real Estate Review
In August 2021 491 homes sold and August 2022 had 440 homes sold putting the year over year decrease at 10.4%. Last August there were 1461 on the market and this August, only 1254 were on the market.
From August 2021 the median sale price was $330,000.00 and in August 2022 the median was $363,983.00. This shows an increase of 10.3%.
Active listings are down 18.2% this year.
Now that summer holidays have completed and school has started it is typical that we see an increase of new inventory coming to the market. If the August 2022 monthly real estate review is an indication of what’s to come, fall and winter might be slower.
The Bank of Canada is still expected to increase interest rates by .75% again in September. This will put the overnight rate at 3.25%. Once you add the 2% Benchmark rate, most people will have to qualify at 5.25% now. Even with these large increases we still do not see property values declining in the near future. This is due to our lack of supply and continued delays with new construction.
As always – if you need help buying or selling your home please contact Ryan and Gregg Bamford.