Saskatoon’s real estate market see’s record numbers for the month of September. The number of sales increased by 41% over last September and are up 12.3% over last year. New listings coming to the market saw a 13.4% increase but for the year are still down 4.2%. The sales volumes also had a large increase of 43% over last September and is up 16.6% year to date. Low inventory levels and low interest rates continue to drive the demand for housing. We even saw an increase in property values by 4.6% compared to last September and up 3.1% year to date. We will wait and see if this unusually high demand for all types of dwelling will continue into the new year.
Supply and Demand
Our demand has continued to out way the supply for most of 2020. For example in the fall we would usually see around 2000 active listings but all year the active listings had not risen over 1550. This is one of the major factors that has created this fear of loss for potential buyers and driven up the prices. The other reason is the all time low interest rate and buyers believing that this will increase right away. The reality of it is our economy is so vulnerable until we see improvements the interest rate will remain low.
COVID + Real Estate
Over the next couple months we will start to see what effect Covid-19 has had on our economy and the real estate market. As of October 1st most people that opted into the mortgage deferral program will start to make their regular payments again. As these regular bills start we will start to see if or how the average homeowner has been affected in these uncertain times.
Keep in mind we are still in a pandemic. The number of Covid-19 cases are on the rise and flu season is upon us. Our market and economy are still quite vulnerable and If we continue to see an increase in cases this will affect our market. Remember we still have not seen any negative effects from Covid-19 in the real estate market and most likely will not until the government’s wage subsidization ends.
Real Estate Bubble
For those looking to sell there is still time to capitalize on this real estate bubble we find ourselves in. Our team is here to help create a strategic plan to capitalize on in this current market.
When looking to buy, even though interest rates are very appealing it might pay off to be patient when purchasing depending on your personal situation unless you’r planning on living in your new home for the next seven to ten 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