February Real Estate Report

Posted by Andrew Slater on Tuesday, March 9th, 2021 at 9:03am.

SASKATOON REAL ESTATE REPORT

February Update:

February's residential sales of 352 units were up from January's total of 278. They were up 53.04% from February 2020 which saw 230 units sell!

- 131 of the 352 were in the price range between $200,000 - $349,999 (37.22%)

- $200,000 - $299,999 had 85 units sell (24.72%)

- $300,000 - $349,999 had 38 units sell (12.50%)

Here are some interesting numbers for February

-$500,000 - $750,000 had 37 units sell, February 2020 saw 15 units sell

- $750,000 - $999,999 had 8 units sell, February 2020 saw 0 units sell

- $1,000,000+ had 1 unit sell, February 2020 saw 0 units sell.

When home sales are up, along with higher priced homes, it's an indication that consumers are confident in the economy. The Consumer Confidence Index is the highest it's been since April 2020! The unemployment rate in Saskatchewan is 7.2%, higher than January 2020 (6.1%) but still the lowest of all the provinces and well below the national average of 9.4%. With current interest rates, you can get 1.45% variable, consumers are jumping at the opportunity to upgrade their homes.

My next point about these numbers is you may hear "The average sales price is up 10.4%!". This is misleading in my opinion. When people see or hear this they think that the price of their home has gone up 10.4%.

Where this number comes from is the average sales price in February of 2020 was $320,249 and the average sales price in February 2021 was $353,542, but as we can see from the data above, there were a lot more higher priced homes sell this February than last February. 

A more accurate method would be to use the Home Price Index. 

This example is all residential properties in Saskatoon, February 2021 was $308,800 and last February it was $283,400 a difference of 8.96%. Compared to 5 years ago it is only up .5%. So it also depends on when you bought your property.

The top chart is apartment style condos in area 5 of Saskatoon, where the average price has gone down 3.4%. The chart below it shows that single family homes in area 2 have gone up 10.5%

       

       

 

  

As you can see, there are a lot of factors that go into determining if your property has gone up in value. To know if your house has gone up in price you would need an experienced real estate agent to do a market analysis of your property.

The video below gives a brief explanation on how the HPI works 

 

What types of properties are selling in Saskatoon? 

 

 

- Of the 352 sales in February

 - 227 were single detached (64.5%),  down from 67.63% in January

 - 64 were Semi Detached (Townhouses, 1/2 duplex) 18.18%, up slightly from 17.99% in January

-  56 were Apartment style Condos (15.91%), up from 12.23% in January 

- The remaining 5 were Mobile homes (1) and both sides of a duplex (4)

For more details on these stats, compiled by the Saskatoon REALTORS® Association click here.

What is happening in the rest of the province?

Across the province sales were up 74% this February from last February. 

 

City

Feb

2020

Feb

2021

%

Change

Saskatoon 230 352 53.0%
 Regina  154 239   55.2%
 Prince Albert  18  50  177.8%
North Battleford   10  21 110.0% 
 Melfort  1  13  1200.0%
Moose Jaw   25 39  56.0% 
 Swift Current  17 16  (5.9%) 
Yorkton 8 23 187.5%
 

To read the full report click here

 

How long is it taking to sell?

February

- 19 units sold in the first 7 days (5.40%) down from 6.12% in January  

- 92 units sold in the next 7 days, 14 days on the market (26.14%) more than double the 12.23% in January 

- 58 units sold in the next 7 days, 21 days on the market (16.48%) up from 12.59% in January 

48.01% of the houses that sold in February sold in the first 21 days, up from 30.94% in January.

This is a huge increase! Will this trend continue?

What could be the reason for this increase in sales in the first 21 days on the market?

Are more sellers pricing their homes correctly?

Are buyers willing to pay more?

 

If yours was one of the ones that didn't sell, click on one of the links below

Click the link below for more information.

Tips for getting your house sold fast

 

Great that houses are selling fast! But what if you're a buyer?

 

Tips for buying in a seller's market.

1. Mortgage Pre Approval

Talk to a Mortgage Specialist! I would stay away from mortgage brokers, there is more chance of your funding falling through. Mortgage Brokers will shop around to find you a great interest rate, but they can't borrow money from RBC, CIBC, BMO or National Bank. Most of the big lenders will match (or beat) any rate that you can find with a mortgage broker. There are a lot of reasons I recommend  RBC, the biggest one being, once you are approved, you're not going to have your funding pulled at the last minute. Other lenders will check your credit or employment up until the day before the mortgage is supposed to be funded, if anything has changed you could be denied. If that happens and you have removed conditions, you could lose your deposit!

2. Free Up Your Schedule

Be prepared to go see a good house the day (or hour) it comes on the market! Wait until the weekend and it may already have an accepted offer.

3. Hire a good agent!

Interview a view, these days you can do that by a quick zoom meeting. A good agent will let you know what the market is like, what price houses are selling for and how to write an offer that will stand out. They should also be listing to what you want. If your looking for 3 bedrooms, 2 bathrooms, a finished basement and near a school, if they are showing you 2 bedroom homes with unfinished basements it's time to "cut them loose"!

4. Writing a good offer

Your offer should be as "clean" as possible. "Clean" means not a lot of extra conditions, for example; don't ask for 3 months possession, don't ask the seller for their furniture or paint before you move in. If you have to sell your house, don't write in a condition of selling your house first!

5. Sell Your House First

Don't worry, a good agent won't let you sleep in the street! They will know how to get your house sold and get you into your next house!

Why is the real estate market so hot?

 

Interest Rates!

Interest rates are the lowest they have been .................. EVER!

The average sales price in Saskatoon is just under $350,000

 

If you can afford to buy..why keep renting?

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