Real Estate Report November 2020

Posted by Andrew Slater on Tuesday, December 8th, 2020 at 5:41pm.

 

November 2020 sales 47.33% higher than November 2019!

 

November Update:

November's residential sales of 358 were down from October's total of 430. They were up 47.33% from November 2019 which saw 243 units sell!

- 158 of the 358 were in the price range between $200,000 - $349,999 (44.1%)

- $200,000 - $299,999 had 108 units sell (30.1%)

- $300,000 - $349,999 had 50 units sell (14.0%)

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

What is selling the most; Single Detached? Townhouses? Apartment style condos?

- Of the 358 sales in November, 247 were single detached (69.0%) Down from 74.2% in October

 - 50 were Semi Detached (Townhouses, 1/2 duplex)  (14.1%) Up from 13.0% in October

- 57 were Apartment style Condos (16.0%) Up from 11.2% in October

- The remaining 4 were Mobile homes (2) and both sides of a duplex (2).

How long is it taking to sell?

In November

- 14 units sold in the first 7 days (3.9%).  October 12 units sold in the first 7 days (2.8%)

- 59 units sold in the next 7 days, 14 days on the market (16.5%). October 84 units sold in the next 7 days, 14 days on the market (19.5%)

 

- 60 units sold in the next 7 days, 21 days on the market (16.8%). October 70 units sold in the next 7 days, 21 days on the market (16.3%)

37.2% of the houses that sold in November sold in the first 21 days.  38.6% of the houses that sold in October sold in the first 21 days.

 

Here are some interesting numbers;

In August, September and October:

- Houses that were newly listed, 4.7%, 4.6% and 2.8% sold in the first 7 days. In November 3.9%

- Houses that were newly listed, 21%, 27.7% and 19.5% sold in the next 7 days, 14 days on the market. November 16.5%

- Houses that were newly listed, 19.7%, 18.4% and 16.3% sold in the next 7 days,  21 days on the market. November 16.8%

- Houses that sold in the first 21 days on the market, 44.7%, 46.3% and 38.6%. November 37.2%

So why are houses not selling as quickly?

Is it because new sellers are pricing their houses higher? No, the average list price was lower in October!

The number of new listings per month has been around 800 since June, October was 622 and November was 424. The Law of Supply & Demand  would indicate that demand is decreasing, if there is less supply and more demand one would think buyers would be purchasing quicker for fear of losing out! 

Months of Inventory

Since June we have been in a "Seller's Market"; a seller's market is when we have 4 or less months of inventory (balanced is 4-6 months and buyer's is 6 or more). This year we have had 3 months of inventory for every month from June thru November, except for September when it went to 4. Typically, months of inventory will start to rise in September or October, peak in December or January and start to decline in March. Since 2015 our market in Saskatoon has been in a balanced state, except for the past 6 months. Since 2015, November thru February have moved into a "buyer's market" according to months of inventory, will that happen this year? I don't think so, I think the highest we will get would be 5-6 months of inventory.

Will there be deals for buyers in December, January and February? Maybe, but those houses will probably need some type of work. Remember, good houses sell!

For a more in depth look at the real estate cycle click here

 

Good House are Selling!

 There are currently 1,115 residential properties for sale in Saskatoon, 867 have been on the market for over 21 days, 77.8%!

Why aren't these houses selling? Click this link for more information; Top Ten Reasons Your House Isn't Selling

If your house is for sale right now, do you know what is happening in the market around you?

You should know if any houses near you have sold, weekly!

You should know if any houses have been listed near you, as soon as the hit the market!

Knowing this information will help you adjust your price to keep competitive! If a house comes on the market in your neighbourhood that is as nice or nicer than yours and is priced lower, your price is just helping that house sell!

The Saskatoon real estate market has been great since May!

What is happening provincially and nationally?

The next 5 slides show that since we came out of the Covid lockdown in late April early May, real estate sales and prices have been their best since 2017!

Is 2021 the time to buy or sell?

YES!

With interest rates at an all time low, sellers and buyers should be acting!

As a current home owner, are you living in your dream home? If not, you should be selling your current home and getting the home you want. Your current home is worth the most it has been in that past 4 years and with today's interest rates you can afford to upgrade!

Thinking of becoming a first time home owner? Now is the time! Why are you still paying someone else's mortgage?

Thinking of buying investment properties? Why not with the current interest rates? Let's face it, there are always going to be people that can't afford to buy, they need to rent. Shouldn't you be buying investment properties and having others pay them off for you?

Recreational properties - This is the time to sell! With COVID on the rise again, people are not going to be travelling for a while, they are going to be looking for other ways to enjoy their leisure time! In 2019 there were 291 recreational properties sell, 2020....459, a 57.7% increase!

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