In my last post, I described the differences between the various types of real estate markets and what typically needs to occur for there to be either a buyer’s, seller’s or balanced market. In today’s post, I’ll be talking about Saskatoon’s real estate market today and what it can mean for those looking to buy or sell.
Saskatoon’s Buyer’s Market
According to Jason Yochim, CEO of the Saskatoon Region Association of Realtors (SRAR), the current economy has created a buyer’s market for real estate in Saskatoon.
The number of properties listed on Saskatoon MLS, a benchmark that’s often used for tracking properties that are up for sale and people looking to buy, has been on the rise in the recent past. This means the number of houses being put up for sale is growing every month. However, the total number of properties purchased every month is proportionately low. This means the demand for houses has reduced.
Houses costing between $450,000 and $500,000, and $750,000 and $900,000 have experienced lower sales compared to other houses in lower price ranges. Reports indicate that these prices will go down with every increase in the number of properties listed on Saskatoon MLS.
Analysts predict the price index will decline as buyers gain more leverage in negotiating transactions. They will have a wider pool of houses to choose from and unlimited time to check them all out. This could lead to deals taking longer to close, and as Yochim says, “If someone is serious about selling their home they need to sharpen their pencil regarding price to ensure a successful sale.” This decrease in demand has resulted in less homes being constructed in the region. Housing starts have reduced significantly in both single and multi-family housing.
Many Real Estate Opportunities Remain
Despite the prevailing market conditions, the Saskatoon real estate industry is still considered a viable investment opportunity. In fact, players in the industry advise that this is the ideal time for property owners to purchase bigger, better and more modern homes.
Cam Bird from Re/Max Realty said, “It’s a perfect situation if anybody’s in an existing home, to actually upgrade to a brand new home, because there’s a lot of selection to choose from.”
Sellers, on their part, will have to adapt to the changes and employ better marketing tactics. They have to flawlessly present their properties in a manner that will attract more buyers. They have to be strategic, because buyers can be picky.
The solution? Align yourself with a realtor who knows the local market inside and out! Contact me for more information on buying or selling in Saskatoon: (306) 227-6661.