As expected, 2017 saw a slight decline in most aspects related to the real estate market, sales, average price and overall sales volume.
One key indicator that reached record levels was the number of available residential properties for sale. The past couple of years have been a challenge economically for most of western Canada and some cities have weathered the storm better than others.
Although the export of commodities make up a large part of the provincial economic output, the diverse economy in the Saskatoon region appears to have helped sustain jobs and subsequently residential real estate sales.
Over this same period the availability of money became tighter as the federal government introduced several measures to cool overheated markets in Toronto and Vancouver. In spite of these challenges the real estate market in Saskatoon and region experienced a very slight decline in sales activity.
As of the end of November the total dollar volume was $1.5M, a 9% decline from the same period last year. The total number of residential sales to the end of November was 4,455 units representing a 5% reduction from 2016. The decline in demand and increase in new listings introduced to the market, resulted in record levels of available housing stock in the new and existing markets. Therefore Saskatoon is firmly situated in a buyer’s market with a gradual decline in the average price.
This is good news for those looking for a home as they will never have better selection along with affordable borrowing rates. My advice would be to not wait for the market to bottom out, if you do then you will end up buying on the upswing. For those who are looking at selling, in a market with plenty to choose from, it is critical to know what is happening in your neighborhood, what your competition is and to get sound, experienced and impartial advice to price properly. This will ensure that the maximum sale price is achieved as opposed to sitting on the market for months.
Looking forward, I sense that we are at least a year or two away from a reversal in the market. As markets like Vancouver continue to become less affordable, I sense that buyers will start looking east to more affordable ones. We are seeing this impact in cities like Calgary and Victoria and I predict it will be coming our way as well. It will be a much needed boost to housing in Saskatoon but not to the extent we saw in 2007.