Saskatoon Current Market

The Saskatoon real estate market is different than what we are used to and there are a lot of listings right now. It would appear that we had a brief sellers market in March and the beginning of April, but now we are seeing a lot more houses coming on the market so it should be more balanced. We are only seeing about 25% of listings coming to the ‘multiple offers’ or bidding system whereas other properties in Saskatoon are sitting on the market for a week or more which isn’t abnormal! Our Saskatoon real estate market had a huge jump last year, over 50%, but this year it is more conservative and I think too many sellers wanted to wait until spring to list this year after what happened last year. The problem with that is that the buyers were smarter this year and were much more anxious to buy a house in Saskatoon early than wait until spring.

So it is much more reasonable for most buyers now as they have a chance to see a few properties and then decide.

I see a lot of people still listing privately, but with more than 600 listings on the Saskatoon MLS system, private sellers are going to have a harder time. Most buyers prefer the safety of doing a real estate transaction with a real estate agent as we have to follow very strict rules and regulations when buying and selling real estate in Saskatoon.

So if you are in the market to buy, you are in a more balanced market than even a month ago. If you are looking to sell, let a Saskatoon real estate agent speak to you about the benefits of listing with us. With Century 21 you do get air miles in the purchase and the sale of a property, so call me today!

There are 3 different types of market conditions in real estate.

Buyers Market

What it is: When the supply of homes on the market exceeds demand. Characteristics of this market place are: high inventory of homes, not a lot of buyers for this inventory, longer times before the home sells and stable or possibly reduced prices.

What it means: buyers spend more time looking for a home, and when they negotiate they have more leverage than the seller.

Sellers’  Market

What it is: When the number of potential buyers exceeds the supply of homes on the market.

There is a smaller inventory of homes with many buyers therefore homes sell quickly and prices usually increase.

What it means: Prices may be higher than list price and buying decisions must be made very quickly. Often times conditional offers may be rejected. Great for the seller but this can be costly to the buyer.

Balanced Market

What it is: This is when the number of homes on the market is roughly equal to the demand. Because the demand equals the supply, the seller accepts reasonable offers, homes sell within a reasonable time period, and prices generally remain stable.

What it means: there is less tension between buyers and sellers as there are a reasonable number of homes to choose from.

Many of you heard of the competitive buyers market we recently had this spring and into the summer, so this was very much a “Sellers Market”.  It appears things are slowing down and the ‘bid system’ seems to be phasing out, but it is not over just yet. The market seems to be balancing out (“Balanced Market”)which is not abnormal for this time of year, however some people make the mistake of thinking the market has dropped, which is not the case. People are not as desperate as they were a few months ago so the bidding is more reasonable, therefore home sales are generally receiving bids that are closer to asking price as it is less competitive than before.

Here is what the CMHC (Canada Mortgage and Housing Corporation) has to say about our province;

Thanks to firm demand for its natural resources, Saskatchewan will experience the longest and strongest period of economic expansion in 15 years. The province’s impressive oil reserves will encourage investment in the energy sector, leading to heightened levels of production. Elevated commodity prices will also stimulate potash and uranium output over the forecast period. In 2010, uranium production will receive a further boost when Cameco’s Cigar Lake project becomes operational. With a favourable economic outlook and aggressive policies to maintain its residents, net migration in Saskatchewan will turn positive for the first time since 1984. Accordingly, total housing starts will average 3,700 units annually through 2011, representing the best fiveyear performance for housing starts in Saskatchewan in over 20 years. Urbanization will continue to elevate the share of residential construction in the province’s two largest centres.

Provincial Highlight

Saskatchewan experienced an important milestone in the last three months of 2006, as 1,524 more people moved to the province than left. This represents the first quarter in nearly 20 years that net migration was positive. Interprovincial migration was the largest contributor to this gain, totaling 1,086 people on a net basis. The majority of interprovincial migrants arrived from Manitoba and Ontario. However, Saskatchewan was also a magnet for Albertans in the fourth quarter, a notable result considering that over the past five years, Alberta gained almost 26,000 people from Saskatchewan through net migration.