To say last month was a crazy month of real estate would be an understatement. The Saskatoon Real Estate market saw record numbers in the month of June.
June 2020 Monthly Real Estate Roundup:
The unit sales had an increase of 38.4% over last June but year to date is down 3.6%. Low inventory levels and low interest rates helped stimulate this recent surge of activity. New listings coming to the market had an increase of 5.9% over last June although year to date they are down 11.6%. Even with this small increase, inventory levels remain quite low. The sales dollar volume also had a large increase of 36.1% over last June and down 1.4% for the year. With all this activity we actually saw property values increase by 3.1% over last June and are up 1.3% for the year.
Record Setting During A Pandemic:
How did we set records in June during a pandemic? Interest rates saw a reduction and were at an all time low. CMHC changed its pre-qualifying standards which came into effect July 1, 2020 and drove some buyers to make a decision on a timeline. Inventory levels continue to be roughly 300-500 listings below the ideal number for a balanced market. Last but not least most years sales have slowed down by June but this year due to Covid we had spring activity in June. So for the sellers it was like a perfect storm having lots of activity, low interest rate and buyers on a timeline.
What Do The Next Few Months Look Like?
In the coming month this activity and demand will likely decline with the slowing economy. Early in July we just saw another reduction in interest rates for the second month in a row. Now we are seeing some 5 year fixed rate as low as 1.99%. This is good news for many people looking to refinance. In all reality, these interest rates show that the Bank of Canada is trying to stimulate our economy. If you are considering selling in the near future, time is of the essence. We do not expect this activity or these prices to last.
As always, in any market, we can help! When selling your home it is crucial to price at market value and have your home ready to show. The proper decluttering, staging, professional photographer and marketing is also a must in our current market to help buyers see value.
If you need help buying and selling our team in here to help!
Gregg Bamford and Ryan Bamford
