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Saskatoon Market Comments

  • 08-09-2017
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  • By: Mike Gustus
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We are at the halfway point in the 2017 calendar year. The number of unit sales compared to last year is almost unchanged and the median price is pretty much the same as well. An increase in sales of properties over $600,000 has kept the median prices up and stable, although the majority of homes sold are still under that amount. We have also seen an increase in condo sales from last year. Part of the reason for this shift are the new rules to qualify for an insured mortgage. With the increase in interest rates, I expect this trend to continue. The head of the Bank of Canada is now considering making it more difficult for buyers who do not require mortgage insurance. There is a real push to make it more difficult to qualify for mortgages, as the government has become more and more concerned with

 people getting over-extended with their mortgages, as interest rates begin to rise.

     When we compare the Saskatoon inventories of 375 homes on the market in 2007 with today’s over 2000 homes on the Saskatoon market, it clearly indicates a huge shift. Even though the population has gone from 210,000 some years ago to the 268,000 today, it still does not reflect that kind of increase. Based on the average time to sell of 45 days (condos are about 65 days), this means we have about a 5 month supply.

     What really concerns me is the fact that the list-to-sell ratio is about 37%. This means that only 37% of the houses that are listed are selling; this is a clear indication that a lot of houses that are listed are priced higher than the market is willing to pay.

     The volume of home sales indicates that buyers are out there. Sellers must be aware that buyers have a lot of choices and are tough on the price when they make their purchase. As I have said before, when we have well cared-for homes listed at the right prices, they sell within a reasonable time frame (within the average days to sell).

     Where we are going in terms of pricing over the next year we really don’t know, but with increasing interest rates, qualifying getting more difficult, and high inventories, I do not expect any real increase in prices.

     If you are curious as to what your home is worth in today’s market, give me a call. I will be happy to spend some time determining the best value for you.

 

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