Fall Housing Market:
Many adjustments have happened in our market over the last 90 days. The amount of active listings have declined by 441 units since the start of September. This brings us under the 5 year average for active listings on the market in Saskatoon by 55 units. Sellers have either adjusted their prices to reflect the actual market value or decided not to sell at this time. Buyers are taking advantage of the current pricing and current mortgage rules which are changing in January 2018. All in all this very positive news to help create a more balanced market.
In November we saw the amount of sales increase by 7% compared to November 2016. Single family homes between 300,000 – 500,000 account for roughly half of our residential sales year to date. Definitely the most active part of our market. Sales activity ranging from 750,000 + have remained almost unchanged compared to last year. We do have an excess of product and are still seeing new developments in respects to multifamily units. It will take some time for the market to absorb these developments and pricing could still adjust.
Yes, the mortgage rules changing in January 2018 will affect the approval amounts of the buyers applying for a conventional mortgage. This is not necessarily a bad thing, it will create a more stable market for when interest rate do increase.
In the new year we will continue to see positive activity with Single family especially, entry level homes.
New buyers will continue to keep this part of the market strong and prices should stabilize. With luxury homes we are seeing a lack of high end lots which could slow down this part of the market unless developers release some soon. Multi-family will remain a buyer markets and continue to be very competitive.
When selling your home it is a must to price at market value and have your home ready to show. The proper de-cluttering, staging, professional photographer and marketing is a must in our current market to help buyers see value.
As always, if you need help buying or selling please do not hesitate to contact us at any time.
Gregg Bamford and Ryan Bamford