May 2021 Real Estate review – Is the market as hot as the weather

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Monthly Review

Saskatoon’s Real Estate market shows signs of a slight cool down ahead. For the month of May, the number of sales saw a 76.7% increase over last May and year to date is up 84.3%. The sales volume also had an increase of 90.1% over last May and up 99.2% compared to last year at this time. New listings continue to increase, this month by 34.4% over last May and up 38.6% year to date. The Home Price Index composite did see an increase of 9.4% over last May but year to date had a slight reduction to 6.6% for the year. Even though these numbers look extremely strong they do show a slight decline in the buying frenzy for Saskatoon.

When looking outside the city at acreages or recreational properties, they are still in very high demand. Inventory for this part of the market is quite limited and will likely remain this way well into the summer months. By saying that we do expect to see new inventory coming soon, which is typical for this time of year.

Government Interventions

After months of hearing rumors about how the Government will cool the Real Estate Markets across Canada in May we received some news. The stress test saw an adjustment, effective June 1, 2021 anyone that is looking for a conventional mortgage will now have to qualify at either 2% higher than the posted 5-year rate or at 5.25%, whichever is higher. Keep in mind this is only for anyone putting 20% or more as a down payment. This will not affect any first-time home buyers or anyone that just decides to put less than 20% down for their purchase.

The Selling Approach

With the market starting to tighten, sellers are now taking a different approach compared to earlier this year. Many people are deciding not to do a presentation of offers and instead of asking buyers to leave offers open for 24hrs. This still allows an adequate amount of time for buyers to view the home prior to the sellers reviewing any offers. If done right this can still result in a multiple offer scenario. We know every seller is looking to maximize their returns and this has been the most effective approach when selling in our current environment.

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

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Ryan Bamford