Will the rise in inventory levels decrease demand?

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Saskatoon Housing Market Inventory

The buying frenzy continued for the Saskatoon Real Estate Market in April. The number of sales increased by 158% over last year at this time and year to date is up 87%. The sales volume also saw a stunning increase of 185% over last April while year to date settles at an increase of 103%. New listings have been coming quickly with an increase of 95% over last year at this time and year to date is up 40%. Even the MLS Home Price Index composite continues to climb with an increase of 10.6% over last April and the year to date is up 8.8%. Keep in mind these numbers are shocking but we’re comparing last April which was one of the slowest months in the real estate market last year. Inventory has not changed a lot since then.

 

Single-Family Homes

Recently most of the talk has been around single-family homes because they are in the highest demand but this is just one part of the residential market in Saskatoon. The townhouse sector has not seen near the demand and has remained quite stable with improved activity levels but no real increase in value over the last year. Condominiums on the other hand have seen a decline in value as more homeowners are looking for privacy and not interested as much in higher density buildings at this time. Although, this could shift in the coming months as many students are planning to return to classes at the University of Saskatchewan for fall 2021.

 

Government Intervention

Over the last month, there has been a great deal of discussion on what the Government would do to slow down the Real Estate Markets across Canada. On April 19 the Federal budget did not propose any new requirements to the lending practice like a higher stress test, raised down payment, or capital gains adjustments. This is tremendous news as these new requirements would be for all of Canada and our local market is not nearly as inflated as the larger centres like Toronto or Vancouver.

Even without new requirements to the lending practice in Canada, change is still coming due to the rise in inventory levels in Saskatoon. The amount of active listings has been on a steady increase since the start of the year. If this stays on track by the end of July we could see more of a balanced market as buyers would have an adequate amount of properties to choose from.

 

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!