It’s not secret. We are in a buyers market.
“Saskatoon’s housing market peaked in 2014, and we’ve seen a pretty consistent slowdown in the quarters since,” a Saskatoon Real Estate brokerage owner.
Looking strictly at the numbers – the median price of a two-storey home fell 3.0 per cent to $398,260, and the median price of a bungalow declined 1.7 per cent to $337,057.
CREA states, “The total number of residential home sales for the month of November in Saskatoon on the Multiple Listing Service (MLS®) totaled 203 units. This represents a 22% decline compared to the same month last year.
The highest total for sales to the end of November was in 2014 reaching 4,203 transactions. This total has been steadily declining since with year to date sales at the lowest in ten years.
At the end of last month there was a total of 3,167 residential MLS® transactions in the city, this is a 25% decline from the high of 2014.”
What Does That Mean?
There are a few things happening in Saskatoon. One is we have a continuous dropping of commodity prices and these have substantially hurt our economy. Now, combine that with the new mortgage stress test rules. Add another lay of the rising interest rates and you have a perfect storm for a downturn in real estate.
Now there is less demand in our community and a higher level of inventory than normal. Last but not least – throw in a looming global recession and – well…. The waiting game begins.
What About Pricing:
Most people jump right on the bandwagon when housing prices go up. No one stops and companies that their house just took a 25% increase.
But… when pricing takes a turn for the worst most people take a stance of refusing to budge. This typically leaves houses on the market for longer than expected. It usually means people do not sell (if they do not have to) and it usually means those that have to sell will take a loss.
Right now, Saskatoon real estate is slow. Sellers do not want to drop prices and buyers don’t want to pay for a home’s value of yesterday’s pricing.
Where Are We At?
Home buyers have been taking a wait-and-see approach for most of 2018. This has allowed the number of homes available for sale in Saskatoon to become oversaturated. This activity is helping home prices edge down, across all property types.
We have buyers and sellers asking us, “What should we do?” Our answer is simple, If you are a seller and you bought your home within the last 5 years. Wait. Do not sell if you do not have to because you will take a hit.
If you are a buyer and you can afford to buy, buy a house. Yes, the market may continue to decrease. But, chances are when you go to sell in a few years down the road, you will still make money selling your home.
As always, if you need help buying or selling your home, contact us.