Saskatoon expecting to move from balanced market to seller’s market in early 2021, prices to increase 5%
Saskatoon real estate is currently considered balanced, but strong activity is anticipated to push it to a seller’s market in early 2021. Low interest rates will continue to drive market activity in the new year, and an uptick in demand for larger properties is expected to continue in 2021. The average sales price in Saskatoon increased by 5% to $346,239 in 2020 (Jan. 1 – Oct. 31), compared to $331,359 in 2019 (Jan. 1 – Dec. 31). The RE/MAX Outlook for Saskatoon real estate in 2021 is an increase of 5% in average price to approximately $363,550.95.
Who’s Driving Demand for Saskatoon Real Estate?
Move-up buyers are currently driving demand in the Saskatoon real estate market, which is expected to continue into 2021. The most popular property type with move-up buyers are single-detached homes.
First-time homebuyers in Saskatoon are typically young professionals looking for single-detached homes. These properties typically range in price from $275,000 to $330,000. Moving into 2021, it is expected to be easier for first-time homebuyers to enter the market, as interest rates are expected to be historically low. There has been no hesitation from first-time buyers entering the market, as they know it is a hot market.
Move-up buyers in the Saskatoon housing market are typically families with younger kids. Similarly to the first-time homebuyers, there has been very little hesitation from move-up buyers as they know the market is hot and interest rates are low. Limited supple and competitive offers have been some of the difficulties that move-up buyers have faced when looking to purchase a home in 2020.
The condominium market in Saskatoon is most popular with single homebuyers, with the average condo price in Saskatoon being $248,231. An increase in sale prices for condominiums has been a challenge for those looking to enter the condo market in Saskatoon.
Saskatoon’s luxury market is currently driven by move-up buyers, with the average starting price for a luxury home in Saskatoon being approximately $750,00. COVID-19 has had some impact on the luxury market in Saskatoon, as the market has seen an increased demand for luxury properties, with lower inventory.
Saskatoon’s Hottest Neighbourhoods
Saskatoon’s top-selling neighbourhoods in 2020 were Brighton, Stonebridge and Evergreen. These neighbourhoods are expected to continue to be popular in 2021. North End Saskatoon is also anticipated to be the in-demand neighbourhoods in 2021 due to the area’s proximity to industrial and manufacturing jobs.
Saskatoon New-Home Construction
The new-home construction market in Saskatoon is currently booming, with hardly any new-construction properties available. New-construction had been slow up until COVID-19; now whatever is available has been sold, with a lot of pre-sales taking place. New-home construction prices are higher than those of resale properties, and the current number of new-construction builds is just right in terms of meeting demand.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While we’ve seen a significant shift in buyer preferences this year, we believe factors such as the supply issue, pent-up demand and historically lower interest rates will continue to fuel activity in 2021.”