Real Estate Report October 2020

Posted by Andrew Slater on Wednesday, November 4th, 2020 at 8:59am.

October 2020 sales 41.45% higher than October 2019!

 

October Update:

October's residential sales of 430 were the same as September's total of 430. They were up 41.55% from October 2019 which saw 304 units sell!

- 175 of the 430 were in the price range between $200,000 - $349,999 (40.7%)

- $200,000 - $299,999 had 105 units sell

- $300,000 - $349,999 had 70 units sell

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 430 sales in October, 319 were single detached (74.2%)

 - 56 were Semi Detached (Townhouses, 1/2 duplex)  (13.0%)

- 48 were Apartment style Condos (11.2%)

- The remaining 7 were Mobile homes and both sides of a duplex.

How long is it taking to sell?

In Oct

- 12 units sold in the first 7 days (2.8%)

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

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

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

Here are some interesting numbers;

In August and September:

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

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

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

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

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. 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! Yet there were just as many sales in October as September. Perhaps the quality of houses being listed isn't as good as before, therefore making houses that have been on the market longer, more appealing? 

 

Good House are Selling!

 There are currently 1,330 residential properties for sale in Saskatoon, 970 have been on the market for over 21 days, 72.9%!

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!

As you can see from the chart above our unit sales have been much better than 2019! Our market was starting to look better prior to the Covid-19 shut down.

If you want to know where our housing market was before covid-19 click here.

 

What is causing this rise in sales? 

Interest Rates!

There are mortgage rates for 1.79% right now! These are the lowest rates in history! The average rate in January 2020 was 3.08%

Update on interest rates! Bank of Canada to keep rates low until 2023! Read more here.

Let's look at some numbers:

Based on a $350,000 property

Mortgage payment at 3.08% with 5% down - $1,650.71

Mortgage payment at 1.90% with 5% down - $1,447.66

The average rent for a 3 bedroom house in Saskatoon is $1,600.........why would you rent? Are we seeing a lot of first time buyers?

What about buyers who want to upgrade? Now is a great time to move from that condo into a single detached house, or move from your 900 sq ft house to a 1,400 sq ft house.

Of course everyone's situation will be different, but the main point here is..........record low interest rates, take advantage of these rates and get your first house or upgrade to the house you want!

Could another reason be that Saskatchewan has become a more desirable to place to live? We have more affordable housing and we have been practicing "Physical Distancing" since we became a province.

Here are some interesting stats from Google Trends

When you search "houses for sale" in Canada here are the top searches:

Saskatchewan was #2

 Check out which city was #1! We were #1 in July as well, then fell to #3 in September.

 

 

 

 

Have house prices been affected?

I like to use the Home Price Index. With this we can look at what prices are doing nationally, regionally, locally, even down to a neighbourhood! Check out these videos for an explanation.

 

The following chart show that the Benchmark Price is up $7,700 or 2.6%, over the last 3 months. This average includes all residential properties in Saskatoon.

This next chart shows that single family homes have gone up, on average, $8,700 or 2.8%, over the last 3 months

 

Did Your House Go Up In Value?

I feel the HPI gives a clearer, more accurate picture on what home prices are doing, but to find out if your house price has increased you have to look more closely and compare "apples to apples". When you hear or see someone proclaiming "The average house price is up 15%!" (or any other number). Ask yourself, "Compared to what?" Last month? Last year? Overall? Single family homes? Condos? Stonebridge? Pleasant Hill? 

 There are many factors to look at when pricing a home, if you would like an estimate on your homes value click the link below. It doesn't have to involve me coming to your home, I can give you a fairly accurate range through a zoom meeting!

Click Here.

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