May Real Estate Review
May brought many changes to the Saskatoon Real Estate Market. The amount of sales saw a decrease of 22.6% over last may and down 14.1% compared to last year at this time. Even with these negative numbers we did see an increase of activity throughout the market especially compared to prior months. The Dollar volume saw a decline of 16.7% over last may and down 11.2% over last year. This is expected when we see such a large decline in sales. New listings to the market also had a decline of 17.5% over last may and down 16% year to date. With limited inventory available, we have actually seen the average sale price increase by 7.6% over last May and up 3.3% for the year.
The Spring Market
Our Spring market has finally arrived and we expect June will continue to be a strong month for sales. Inventory levels are still low but they are increasing quickly. Depending on the amount of new listings coming to market we could see the demand decrease soon. As supply levels increase, we will most likely see property values be affected. So, if you are looking to sell in the near future, now might be the best time to get the most value for your home.
CMHC just released an update saying Canada could see a 9 – 18% decrease in property values this year. Because of this they are now changing their underwriting policies for insured mortgages and this will certainly affect how much buyers will be approved for. Effect July 1, 2020, potential buyers will require a Gross Debt Services (GDS) of 35% down from 39%, Total Debt Service (TDS) 42% down from 44%, and now a minimum credit score of 680 is required. This will certainly drive the activity for anyone looking to purchase prior to the rule change.
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 value.