Real Estate Information Archive

The May numbers are indicating that we are seeing the market softening a bit. It is encouraging to see that the price range of $300,000 to $500,000 has shown an increase in unit sales of 16% higher than May 2009. Over all the unit volume was 4% lower in the same month last year. YTD units sales this year are up 8%. I noticed that things have tightened up since the CMHC rules were changed. They have made it more difficult to qualify by forcing people to qualify for the five year term, which is at the 6% rate. This change has made the buyers a little tougher in negotiations.

I was discussing the real estate mood with a car salesperson the other day. It was felt that the used car market is similar to the real esate market in that the buyers are tougher when negotiating their purchase.

There will always be people needing to buy homes and those who need to sell.  It may take a little longer sometimes and the prices may vary a little, but the is always a buyer for a good property.

Sales have declined in Canada overall. We are influenced by the national situation to some extent, but we have a stronger economy in Saskatchewan and particularly in Saskatoon.

All the rain we are getting will have a pretty significant effect on the farmers throughout the province. I guess we will see how much as the year passes. We were worried last year and it ended up being a very good year. It doesn't look good for the farmers as of this writing. I guess time will tell.

Spring fever has hit Saskatoon!  Activity has increased dramatically in February. Both listings and sales are up from January, as shown by the chart below:

While the numbers show dramatic increases January to February the figures compared to last years numbers year to date are good, but not quite as rosy as the February over January appear to be.

I have noticed a wide range of activity in the different price ranges.

The greatest increases are in the $125,000-150,000 range and the $200,000-$250,000. range. There s been a drop in volume in a couple price ranges.

The $275,000-$300,000 range saw a YTD drop of 30%. I think this is largely due to a lack of houses for sale in this price range.  We are seeing lower levels of activity in the over $500,000. price range, with only one sale over the $750,000. mark. The volume in the $500,000 - $750,000 range is the same as last year.

It appears that we are loking to another good year overall, with unit sales in the major catigories up over last year.

I can see shortages of product in the mid to lower prices ranges (especially the $200,000.- $350,000.range) in all areas in the city.

The average sale price has moved by 1% over last year, which is what we in the industry expected. We are doing well in the economic climate in Canada.

The average sale price in Saskatoon's rural residential is up a little with unit sales being down slightly. I believe what we are going to need to see in the rural residential to bring the volumes up, is more inventory. We have an over supply of vacant land parcels and a shortage of developed properties. Prices have stablized and we now need some volume for people to feel good about purchasing in the country.

The average sale price is up 2% over 2009 in the rural areas around the city. (much the same as within the city)

So overall we are doing well in Saskatoon.  It is a great time to sell if you have been thinking about it.

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We are following the traditional patterns of falling inventory as we go into the winter season. There were 1291 properties on the market at the end of July. We are now at 971 units on the market at the end of October.

The market has seen brisk unit sales in September and October in the $200,000.00 - $350,000.00 range. There has been a significant decline in unit sales over the $350,000.00 range from last year in the same period.  Overall unit sales YTD has increased by 5%, while new listings are declining. This is showing up in the lower inventories.

This is good news for the sellers. It is getting more difficult for the buyers to find properties in the lower price ranges in the more popular areas such as the older South East areas. (area 2).

Area 2 unit sales are up 12%. This is primarily in the under $300,000.00 price range.  In the extreme East area (area 1) of the city, home unit volumes are up by 17% over last year.  Judging by the price range volumes, this is in the townhouse and condo markets for the most part.  Area 3, especially in the single family units has a short supply of homes in the $250,000.00 – 350,000.00 range.  Unit sales are down in area 4, in large part due to lack of supply. Area 5 is having a good year with the expansion in the Hamptons as well as a strong demand from first time home buyers for the $200,000.- $250,000.00 single family resale homes. Unit sales YTD over $350,000.00 are down overall.

I feel this tells us that the majority of the buyers today are first time home buyers who are encouraged by the low interest rates and attractive mortgage terms offered by the lenders.

I expect we are going to see a solid market in the coming year as sellers begin to realize that we are not going to get a major step up in prices. We are back into the stable slow growth market that we were accustomed to in the past.

Saskatoon is a great place to live. We are enjoying a level of prosperity and stability here that is envied by the rest of the country. I believe that we are better to have stable growth rather than the huge price swings that the west coast and central Canada has seen in the past.

So if you are considering selling, the market is good for sellers. The buyers are having trouble finding the property they are seeking at what they consider as good value.

If you have been wondering what the value of your property is, and what to expect in your price range and area, I will be happy to sit down and discuss it with you.

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After many years of work, the Government Relations Committee is pleased to see the government has acted on their commitment to address the property tax issue.

When measured against the last two years which were an anomaly, the market has softened. When measured against activity over the last five years, market activity is on par and ahead of sales figures from 2004, 2005 and 2006. Home.  The greatest challenge facing sellers currently is to adjust their expectations in this changed market place.

The February residential home sale market performed as forecasted. Unit sales are expected to soften during the first half of 2009. Demand for property in the month of February remained steady. REALTORS® sold 211 residential unit sales in February that number down 42% from February 2008 when 365 properties were sold. Year to date unit sale numbers are ahead of 2005 and 2006 sale figures.

Residential inventories remained above average for the month of February with home buyers having 1313 properties to select from at the end of the month. Inventory numbers are up 256 % from 2008 when 369 homes were available for purchase. Expectations are that it will take the better part of the year for this inventory to move through the market.

Consumer confidence in the Saskatoon economy remains steady. We are receiving numerous inquires of buyers from other provinces. Markets are cyclical and the market in Saskatoon is at a low point and should begin to return to normal in the next few months. As a result, now is a good time to purchase a home or investment property.

(Information taken from MARCH MEDIA RELEASE by Harry H. Janzen, CAE, Executive Officer, Saskatoon Region Association of REALTORS®)

If you're interested in an accurate estimate of value for your home, please call me for a comparative market analysis.

Mike