Sales slow for the Saskatoon real estate market as inventory levels continue to dwindle. Over the month of October the number of sales were up only .7% over last year at this time and remain 29.8% up for the year. The sales volume saw a 5.9% increase over last October while year to date is up 3.9%. When reviewing these numbers the most important is the Home Pricing Index Composite number and it shows a 7.8% increase over last October and year to date up 3.8%. New inventory had another decline by 5.5% compared to last October but is still up 12.1% for the year. Active listings also declined by 9.3% over last year at this time and is down 8.74% year to date. Overall we are seeing much less inventory with the same amount of sales as last October but prices have increased by 7.8%.
The Saskatoon Real Estate Market:
Many factors have contributed to this unpredictable market over the last couple years. Moving forward the two greatest factors to watch will most likely be interest rates and inventory levels. Inventory levels are on a steady decline which typically creates more demand but the activity seems to have slowed. This could be due to a lack of quality homes on the market or the rise in interest rate. Fixed rates are still quite low but as they continue to increase the incentives for the many buyers to enter this bullish market might not be as beneficial any more.
For the first time since 2016 new construction is in high demand. Before Covid-19 new builds could not compete with the used sector of the market due to the price points. Now that prices have risen and the used inventory is so picked over, we are seeing many people opting into building new even with the price increases and delays on materials. Even though new homes are in high demand, builders are still not making great margins with all the increases on materials over the last couple years.
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.
If you need help buying or selling our team is here to help.
Gregg Bamford and Ryan Bamford