JUNE 2021 MONTHLY REAL ESTATE IN REVIEW
Saskatoon’s Real Estate Market sees a decline in activity to start the summer. In June the number of sales had an increase of 18.3% over last year and year to date is up 64.9%. The sales volume is also up 28.8% compared to last June, while year to date it settles at 78.8% over last year. New listings coming to the market did see a slight decline of .5% compared to last year at this time and year to date is up 29.9%. When looking at the Home Price Index Composite it did increase to 6.1% over last June and is up 6.4% for the year. Even though we still see positive numbers almost across the board, these stats show there was a significant decline in activity for the month of June.
NEW STRESS TEST RULES
As of June 1, 2021 the new stress test rules came into effect and certainly caught some purchasers off guard. Typically when an adjustment to how people are qualified for a mortgage takes place, the bank will honour a pre-approval for 90-120 days depending on the lender. This was not the case as some lenders decided not to honour any of their pre-approvals. Each client then had to qualify at the new stress test even though insurance providers like CMHC and Genworth would still honour the original pre-approvals. As you can imagine this was quite frustrating as some people had accepted offers on properties believing they were buying within their means and then did not qualify for the mortgage with the new rules.
THE CURRENT MARKET
The market continues to soften even with low inventory levels and low-interest rates. With prices where they are, many buyers are frustrated and have decided to wait until things cool down a little or until they find the perfect home. The other factor to keep in mind is as the province opens up many people are planning to get back their regular summer activities to enjoy this beautiful weather we are having. It seemed priorities have changed a little and buying a home might not be top of mind for some at this moment.
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 is 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