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Market Comments - Second Quarter

  • 07-20-2018
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  • By: Mike Gustus
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   The market in Saskatoon seems to be in a constant change. Inventories are declining somewhat, but the prices are as well. The residential inventories at the end of June in 2017 were at 2260 and in 2018 were at 2088. The YTD unit sales were also down from 2320 YTD in 2017 to 2184 in 2018.

     New listings YTD in 2017 were 6772, 2018 total YTD listings are 6085. Days on the market average in 2017 was at 57 days while in 2018 it is at 61 days. These are YTD numbers. Inventory is sitting at 7.6 months in 2018 while it was at 7.4 in 2017, a slight increase.  Buyers seem determined to pay lower prices. (I believe they are concerned that the home they buy may be worth less in a year from now)

     The trend indicators are showing the most active price range is in the $300,000 - $350,000 range. The second category is in the $500,000 - $750,000 range.

     The interest rate increases will make owning a home Saskatchewan with a mortgage more costly over the next few years. As interest rates increase, the buyers will qualify for a smaller mortgage. This will have the effect of driving prices down further. When we look at the interest rates, they are still very low compared to some years ago. History tells us that when interest rates are higher, prices tend to be lower for home ownership to be viable for most folks.

     Talking about home affordability, it is interesting that Saskatchewan has some of the lowest income ratios to home ownership costs in Canada, at 26 -32% of disposable income.  Markets such as Vancouver are at 80+% of disposable income to service the home ownership costs. I don’t believe that is sustainable. I guess our lower prices are a blessing in some ways.

      Those clients who accept the market as it is today and allow me to be creative in my marketing methods, as well as take my pricing advice, are getting their houses sold. On a positive note, activity in the market has picked up in July.

      For many free reports on how to prepare your home to sell in today’s market, you are welcome to go to my website mikegustus.com, anytime, and click the “seller” dropdown to access all kinds of free information about selling.

     If you are considering selling, please give me a call for a free consultation.  I will be happy to provide you with tips on how to sell your home for the most amount of money in the Saskatoon market today,  especially on where and where-not-to invest money to enhance the value of your home.  Just call 306-668-1800 anytime.

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