Saskatoon Real Estate Report Update

Posted by Andrew Slater on Wednesday, October 14th, 2020 at 11:55am.

 

August 2020 sales up 41.85% from August 2019!

September sales up 40.07% from September 2019!

My apologizes for falling behind on the market reports!

August Update:

August's residential sales of 461 were down from July's total of 550, but were still up 41.85% from August 2019 which saw 325 units sell!

- 203 of the 461 were in the price range between $200,000 - $349,999 (44%)

- $200,000 - $299,999 had 116 units sell

- $300,000 - $349,999 had 87 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 461 sales in August, 346 were single detached (75.1%)

 

- 62 were Semi Detached (Townhouses, 1/2 duplex)  (13.4%)

- 51 were Apartment style Condos (11.1%)

- 2 were Mobile homes 

How long is it taking to sell?

In August

- 20 units sold in the first 7 days (4%)

- 97 units sold in the next 7 days, 14 days on the market (21%)

- 91 units sold in the next 7 days, 21 days on the market (19.7%)

44.7% of the houses that sold in August sold in the first 21 days!

 

September Update:

 September's residential sales of 430 were down from August's total of 461, but were still up 40.07% from September 2019 which saw 307 units sell!

- 173 of the 430 were in the price range between $200,000 - $349,999 (40%)

- $200,000 - $299,999 had 94 units sell

- $300,000 - $349,999 had 79 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 September, 316 were single detached (73.5%)

- 63 were Semi Detached (Townhouses, 1/2 duplex)  (14.7%)

- 50 were Apartment style Condos (11.6%)

How long is it taking to sell?

September

- 20 units sold in the first 7 days (4.6%)

- 100 units sold in the next 7 days, 14 days on the market (27.7%)

- 79 units sold in the next 7 days, 21 days on the market (18.4%)

46.3% of the houses that sold in September sold in the first 21 days!

 

Good House are Selling!

 

There are currently 1,472 residential properties for sale in Saskatoon, 1,041 have been on the market for over 21 days, 70.7%!

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

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%

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 house for sale and pick Canada here are the top searches:

Saskatchewan was #2

 Check out which city was #3! (We were #1 in July!)

 

 

 

 

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 charts show that the Benchmark Price is slightly higher for July compared to June and slightly higher than last July. We still aren't at prices that we saw 3 years ago or 5 years ago. 

As you can see the Benchmark price has gone up 2.5% since July

 

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? Detached houses? Etc. 

The average house price in June 2020 was $335,213 ...... July 2020 was $350,458 an increase of 4.5%,  did all house prices go up 4.5%? The HPI shows an increase of 1.8%. You have to look at the MIX of what sold.

 

June 2020, breakdown of number of houses sold in price ranges. Check out June's report here.

 

July 2020, as you can see, more higher priced homes sold in July, thereby affecting the average price! Check out July's report here.

 

Lets look at single family homes (The stats we looked at previously were all residential properties)

Single family homes have gone up 4.3%

Now if we break things down further, we see that single family homes in area 2 have gone up 5.8%

 

 

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