Saskatoon’s Real Estate Market continue to see less homes hit the market, a decrease in unit sales and less dollar volume overall.
It is the quintessential buyers market in Saskatoon.
June 2018 Real Estate Review:
June seemed to bring more activity with buyers but the numbers show they are very cautious. Unit sales are down 8% over last year and usually we have our strongest months from March – June.
We will see less activity in July and August with the school year complete and people enjoying their Saskatchewan summers. We should continue to see entry level homes at high demand. Especially in the coming months to meet our university housing needs of roughly 25,000 students yearly.
Interest Rate Changes:
The Bank of Canada is also predicting an increase of interest rates in July, 2018. Should the banks increase interest rates, it will tighten budgets once again.
Pricing Your Home:
Seller’s are still trying to test the market which has resulted in an increase of inventory. With the decrease in sale price over the last 3 years many people are having a hard time moving onto their next home.
Some sellers have now accepted that this is not the best time to sell homes. They have decided to wait until they are in a better financial situation.
When selling your home it is crucial to price at market value and have your home ready to show. This is not easy to hear if you bought your home during the peak of the cycle.
The average sales price for a Saskatoon home on the MLS in 2005 was $144,943 and ten years later it was $353,685; an increase of 144%. The simplest explanation for this drastic change was a sudden but permanent change in demand and a shortage of supply that was slow to respond.
That being said, looking at past statistics; Q3 of 2015, we saw a slight slowdown in demand with record highs of inventory and a falling sales-to-listings ratio. So logically, if a supply shortage led to a price increase, a supply surplus may very well have the opposite effect. What does that mean for sellers? If you bought your home during the peak (within the last six years) selling your home now is going to require a different selling price than what you purchased your home for.
The proper de-cluttering, staging, professional photographer and marketing is also a must in our current market to help buyers see value.
As always, if you need help buying or selling our team is here to help!
Gregg Bamford and Ryan Bamford