The Last Couple Of Months In Saskatoon:
Saskatoon sales rose 158.2 percent over April 2020 to 550 units, up from 213, according to SRA.
Surrounding towns and cities in the region also saw considerable increases. Martensville had 22 sales, up 175 percent from eight last April; and Warman sales jumped to 43 from 10, up 330 percent.
Getting To A Balanced Market:
A couple of things are probably going to contribute to a balanced market.
First, there has been some talk about increasing qualifying mortgage rates to cool the market, the low-interest-rate environment has continued to fuel the fire but when the interest rate moves, so will the buying/seller’s market.
Secondly, people are not spending money on traveling or going out all of that is changing with the opening and vaccination rates. When people can resume life as normal (or back to normal) there will be less money in the bank as it will be going back into the economy.
Third, the spring market is starting to cool. People will be spending more time at the lake, traveling, and getting back into routine and the spring home-buying frenzy is going to cool down.
There are also more listings than there were even a month ago. Landlords who were reluctant to sell and are underwater on their properties are starting to enter the market as well.
A balanced market occurs when supply and demand are about the same, with home prices rising in line with a long-term average rate of inflation. A balanced market is in the four-to-six-month range of inventory.
Typically this is indicated by a sales-to-active listings ratio between 12% and 20%. We are hopeful the market will be better balanced this fall.
As always if you need help buying or selling a home contact Gregg Bamford or Ryan Bamford.