Many people suggest the “Sask-a-boom” is over. Whether or not you agree with that, there are some sobering numbers to look at in Saskatchewan right now.
First and foremost – the foreclosure rates continue to go up year after year. We are at an 80% increase over the last 5 years.
Commercial real estate vacancy is currently at 16.7% in our competitive Saskatoon downtown office market but that number does not reflect 40% of the space yet to be leased within the 300,000-square-foot Nutrien Tower which just recently started construction.
The residential vacancy rate is hovering around 9%. An elevated annual rental vacancy rate above its critical threshold (around 6%) signals moderate overbuilding.
What Does All Of This Mean For Buyers:
Buyers, you may be in luck. A report from the province offers stats from the Provincial Mediation Board, which show the number of Notices of Mortgage Foreclosures have jumped from 772 in 2014-2015 to 1,409 in 2018-2019.
The numbers include properties involving vendor and third party financing.
What this means is you could potentially buy a situation. If the houses are auctioned off you could get a great price on the perfect home for your family.
Alternatively, with more people not being able to afford homes (and more homes going through foreclosures) you may be able to get the home of your dreams for even less of the asking price.
What Does This Mean For Sellers:
New numbers show more homeowners appear to have trouble making their mortgage payments in Saskatchewan.
If you are selling your home you need to consider a lot of variables:
- Location of your home
- Timing the sale
- Costs associated with moving
- Price of your home
- Alternatives to selling – such as renting – or lease to own
Selling in this type of market can be tricky because it is a buyers market – and the buyer is typically looking for a great deal.
If you cannot reduce the price of your home any further – renting might not be an option any more due to the numbers we listed above. So you will have some hard choices to make
The Saskatoon housing market continues to experience pressure from government policies with regards to new home builds. The average home price in Saskatoon continues to decline which also adds a layer of pressure on buyers and sellers.
Foreclosures are real and they are happening in our community.
Buying and selling a home in this environment can be a little tricky. No matter your situation please let us know if we can help.
Gregg Bamford and Ryan Bamford