As Saskatchewan’s largest city and business hub, the Saskatoon market is energized with activity. The prairies were affected by COVID-19, but quickly rebounded to strong activity – notably, Saskatchewan has outperformed last year’s market.
The city of Saskatoon had fewer cases of COVID-19 compared to other urban centers and was able to control the virus early to avoid the devastation experienced by other provinces. As a result, this market is showing promising signs of resiliency and recovery.
Here are a few market conditions that show the activity ahead in the Saskatoon real estate market:
Buying and Selling in Saskatoon
The province experienced a slight uptick in COVID-19 cases in September, but this hasn’t deterred people from participating in the Saskatchewan real estate market. In fact, there was a 52 per cent increase in sales from last September.
Activity was evident during the summer months where some REALTORS® even noted the occurrence of bidding wars and homes selling within days. June was one of the busiest months in years. This was a sure sign of market recovery following slower Spring real estate activity due to coronavirus. The market has even outperformed last year’s figures.
Despite the pandemic, buying and selling of homes waged on in this prairie province. Sale prices continue to be high, while inventory is low, showcasing that this market has seemingly recovered from the instability the coronavirus caused.
It’s important to note that home prices in Saskatoon remain steady. Homes in the city stayed on the market an average of 40 days in September, which is a 27.3 per cent decrease from 55 days last year. All of these factors point to a seller’s market in this city.
Low Interest Rates
Across the country, low interest rates will offer more Canadians the opportunity to dip their toes into the real estate market. The Bank of Canada has slashed interest rates to the lowest they’ve ever been at 0.25%. The rates are expected to stay for a while in order to bolster the economy.
Saskatoon is an attractive real estate market for young people and first-time homebuyers due to its affordability, compared to other markets across the country. For homebuyers who previously had trouble borrowing amid pervious market conditions, these accessible rates make jumping into the market a little easier.
Leveraging Technology to Get Deals Done
For those who aren’t deterred by the coronavirus and are willing to adapt to new public health measures to facilitate real estate transactions, the market conditions are prime. Technology solutions are providing the opportunity for people to scoop up their dream home in the Saskatoon market.
From virtual tours to e-signatures, there’s been a few changes to the way home sales are occurring within the current climate. Real estate agents have pulled out all the stops to ensure their clients feel safe when attending open houses and conducting business. Their dedication to innovation and commitment to putting clients first has helped keep the real estate industry afloat, despite shaky economic conditions across the country.
Can We Expect Strong Real Estate Activity Ahead?
Will demand for Saskatoon real estate be sustained into 2021? The Saskatchewan Real Estate Board does expect some of this demand to fall off as fall winds down and transitions to winter. Yet, consumer confidence continues to be high…for now.
RE/MAX brokers and agents are estimating a three-per-cent increase in average residential sale prices for the remainder of the year. Research indicates that 56% of Canadians who feel confident in the real estate market are likely to buy or sell even in the event of a second wave.
Real estate professionals are cautiously optimistic that Saskatoon will see at least average activity during the fall and winter seasons. Although, as government funding tapers off, it remains uncertain as to whether this activity will continue to be as strong. Some people may not have strong financial power to purchase homes. Yet, some industry observers suggest that the affordability of this prairie market may still attract homebuyers regardless.
Saskatoon is a fast-growing city with a buzzing real estate market that has thrived despite the COVID-19 pandemic. Although the coronavirus affected the market early on, with increased confidence and improving market conditions, Saskatoon is expecting the strong market activity to continue through the winter season.