Posted by Ryan Womeldorf / Uncategorized / 0 Comment
Saskatchewan Housing Market Continues to Soar
Canada’s housing market has been hot in general over the last year. The Saskatchewan housing market continues to ride the nationwide frenzy behind housing. The numbers are all in and the province as a whole remains hotter than ever.
With the outbreak of the COVID-19 pandemic came plenty of questions and even more uncertainty. With so many Canadians losing their jobs and facing uncertain financial futures, it begged the question of what would happen for the Saskatchewan housing market and beyond.
In March of 2021 alone, over 1,700 homes were sold across Saskatchewan. That is an incredible rise of over 85% versus March of 2020. Not only that, new listings were up over 41 percent according to the Saskatchewan Realtors Association (SRA).
What do the numbers look like across the rest of the province? Here is a further look at the happenings in the major cities across Saskatchewan for 2021.
Saskatchewan Housing Market Numbers
The numbers across Saskatchewan at large continue to soar. While all of the buzz seems to surround major markets like Toronto and Vancouver, the Saskatchewan housing market is nothing to sneeze at. Here is what the forecast looks like for the major cities in the province.
The demand, according to the SRA, has been fueled not only by higher demand but by a shrinking inventory. Experts predicted that the market would suffer facing the uncertainty of the global pandemic, but the opposite has come to fruition.
Saskatoon
In Bridge City alone, sales were up a whopping 109 percent from the previous year. The numbers increased from 273 homes sold in March 2020 to 570 in March of 2021. Not only that, the number of new listings jumped from 602 to 926, a 54 percent increase.
With the increased number of listings and sales, the time that homes are staying on the market is shrinking. Homes in the city were only up for sale for an average of 36 days in March 2021. That is a drop from 55 days (34.5 percent) from the previous year.
According to the MLS Home Price Index (HPI), Saskatoon also saw the average home price rice by 8 percent. That took the average from $290,500 to nearly $315,000 just from last year.
Regina
Regina also saw a major increase in their sales. The number of homes sold in March 2020 (213) jumped by 70 percent, increasing to 362 homes sold. Not only that, the new listings in Saskatchewan’s Queen City shot up by nearly 60 percent. There were 430 listings in March of 2020 with 680 in March of 2021.
The average time on the market is slightly longer than those of Saskatoon, but not by much. The average time on the market in Regina is 41 days, down nearly 40 percent from the March 2020 average of 68 days.
The MLS HPI has noted that the hot housing market is pushing the average price for a home up across Regina. There was a 9.5 percent increase in the last year alone.
Moose Jaw
Still not convinced of just how hot the Saskatchewan housing market is? Sales in Moose Jaw were up almost 94 percent from the prior March. The numbers are much smaller compared to other cities in Saskatchewan. There were only 31 homes sold last year compared to 60 this March.
New listings actually fell compared to last year. The drop is just one percent, going from 87 listings in March 2020 to 86 in March 2021.
Just like the rest of the province, though, the average time on the market is substantially less. The average time on the market in Moose Jaw is roughly 62 days. Compared to 86 days as of March 2020, that is a nearly 30 percent drop.
Prince Albert
Home Sales were on fire in Prince Albert over the last year as well. The city saw a near 80 percent rise over the past year, though it does have smaller numbers in comparison to Regina and Saskatoon. March 2020 saw 24 homes sold while March of this year saw 43 homes bought.
The new listings, though, have increased by quite a bit. There were 60 new showings in March 2020 with a 43 percent leap, topping out at 86 new listings.
Prince Albert holds one of the longer market periods, though. The average time on the market has actually increased from March of 2020 as well. The average time on the market was 68 days in March 2020, with the average time on the market being 81 days as of 2021.
How to Handle a Hot Saskatchewan Housing Market
What can you hope to do in this market as a buyer? Are you simply doomed to wait until the market cools off? Here are a few tips that can help buyers navigate markets like the Regina housing market and find the home that they have been looking for.
Having Finances in Order is an Absolute Must in a Hot Saskatchewan Housing Market
Before you even begin shopping for a new home, there are more than a few financial tasks that you should have in order. Some take more time than others but having your financial ducks in a row can save you a lot of time, hassle, and can give you an edge over buyers who don’t have theirs in order.
Start by checking your credit score. Review your credit report. Verify that everything is accurate and take
some time to work on improving it if your score is worse than “good”. Your credit score is the most important aspect of buying a home. Even if you get approval, you may be staring down ungodly interest rates.
You should also have money saved for a down payment. Knowing well ahead of time – years, even – that you want to buy a home can give you the time that you need to save. Having 20% down is preferable to avoid having to pay for private mortgage insurance, but 5% is the absolute minimum.
On top of the down payment, you need money to cover a few other fees. Appraisals, inspections, etc. will add up in no time. Have money saved on top of the down payment to cover them.
Finally, get your pre-approval. Simply being pre-qualified will not be enough in a market like this. Pre-approval means having your finances examined thoroughly by a lender with a promise in writing that you financially qualify. That pre-approval can make all the difference in the world in a market like this.
You Need a Knowledgeable Real Estate Agent in the Saskatchewan Housing Market
In a market like Regina’s, your real estate agent is going to become one of your most important tools. An agent that is slow to find new properties and even slower to respond can wind up costing you the opportunity to see homes, let alone offer on them.
An experienced real estate agent is a must in this market. They have a knack for understanding what their buyers are looking for, they communicate well, and devote their time to the buyer. More importantly, they know the area(s) the buyer is searching, able to find homes just before they list.
Don’t just do a cursory Google search, either. Talk to friends and family, especially those who have bought or sold a home recently. Check out reviews left on that agent, seeing what others have had to say about their experiences.
A good real estate agent is important for navigating a hot housing market. An agent that is difficult to
get ahold of or is not as proactive as they should be can wind up costing the buyer a house or two, especially in a market like this.
You Need a Strong Offer in the Saskatchewan Housing Market
There is one important thing to know before offering on a home in a seller’s market. There will not be room for negotiation or haggling. Putting in a lower-than-market offer is the fastest way to rejection and nothing more.
In a buyer’s market, there may be that room. Perhaps some aspect of the home needs work and the price can be lowered to accommodate that. But in this market, homes are flying off the market regardless of condition. That means the seller can simply ignore your offer and move on to the next, more likely higher, bidder.
Realtors will encourage buyers in this kind of market to offer full asking price or at least close to it. In more than a few instances, they will suggest bidding over the asking price (and well over it at that). It really depends on the conditions of the market and the home in question.
Offering a high bid (or the highest) will no doubt interest the seller. In most cases, it is difficult for the seller to look past the money. But it is not as simple as having the highest offer on the home in question.
A solid offer can include fewer demands or contingencies to the seller. Putting down more earnest money or even guaranteeing the sale amount past the appraisal can show the seller a new level of seriousness.
There are more factors that go into a quality offer than simply offering the most. While that does not hurt, fewer contingencies or guaranteeing over appraisal are just as strong when it comes time to make an offer.
SaskEquity Can Help in this Scorching Saskatchewan Housing Market
Perhaps most importantly, have the help that you deserve when finding the right home. SaskEquity has the tools, knowledge and experience to help you every step of the way. Going it alone means running into situations that you are not prepared for.
By having a guiding hand like SaskEquity in the mix, you can feel comfortable and confident during your home buying journey. Don’t find yourself in a position you would otherwise like to avoid. Let our team help you through the homebuying process.
Navigating through a tough housing market can feel scary and, at times, impossible. With SaskEquity at your side, you can not only find the home that you have been looking for but avoid giving up your rights. More importantly, you can avoid falling into a money pit of a home that has dragged down countless buyers before.
