Beginning of 2021 break records
The Beginning Of 2021
It comes as no surprise, it’s a buying frenzy in Saskatoon’s Real Estate market. 2021 is seeing some shocking stats and we do not see the market slowing down anytime soon. For the month of February, the number of sales saw a 53% increase over last year. This time and year to date are up 40.3%. The sale dollar volume also had a large increase at 69% over last February. It is up 52.5% for the year. New inventory coming to the market did see a modest increase of 15.8%. This is an increase of 5.8% year to date. Even with this slight increase in new listings, Saskatoon has 23.6% less active listings than last year at this time. All in all, if you are looking to sell it might be time to do so.
Supply and Demand
With such limited supply buyers are having to be available and ready to drop everything when the right home comes to market. Most single-family homes if priced at market value are selling within the first day or two. Either, the first day with buyers trying to secure a quick offer or some sellers are giving buyers more time and trying to maximize the sale price by doing a presentation of offers.
The last time we saw enough demand to be able to do a presentation of offers was in 2007 & 2008. Yes, there are some similarities to that market but by no means are they the same. The big differences are that buyers are still able to be protected when competing offers are in place with conditions like financing and home inspections. Property values are on the rise but nothing like the increases we saw in 2007 & 2008. The most important thing we have to remember is this market is being stimulated by the government in many ways during these tough times and it will come to an end at some point.
In the coming months, buyers could feel a little extra urgency as the five-year fixed rates did see an increase of .25 – .30% from most lenders. This means pre-approved buyers will now have either 90 or 120 days to get possession of their new home to be able to hold the rate at which they were pre-approved. Even with this modest increase interest rates are still under 2% for insured mortgages.
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 are also a must in our current market to help buyers see the value.
If you need help buying or selling our team is here to help!
Gregg Bamford and Ryan Bamford