Murray Wood: Who's scary... and who's scary good?
Every Friday, Murray Wood takes a look at the week's news and decides who's hot... and who's not. This week, in a specia...
As home sales in Saskatoon heat up this spring, the CEO of the Saskatchewan Realtors Association said it’s a “tense market” right now, and it’s not expected to let up anytime soon.
“I say tense because it’s not very comfortable for buyers or sellers. Things are moving very quickly because there’s not a lot of inventory on the market,” Chris Guerette said, adding the crunch has been predicted for a while now.
She says in the first week of April of 2023, 26 per cent of homes were sold either at the listing price or above the listing price.
“Well, in this week, April 1st to the 7th, 2024, we had 55 per cent of listings going at asking (price) or above. That’s almost double and indicative to us of an acute shortage of listings and that’s problematic for anyone who’s trying to dabble in the real estate market right now,” she said.
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Homes that are priced under $400,000 are especially in tight supply, and that includes new construction.
“That’s where we seem to have the most acute shortage in our inventory. And we are forecasting at some point this year (that) interest rates will start going down, or that we will have cuts. Once that happens, the market will speed up even more,” she explained.
The notion that Saskatchewan is often thought of as one of the most affordable provinces to buy a home in Canada falls flat for people who are struggling and looking to buy a home.
“Our housing continuum will be strong when it’s varied and there are various price points, so that people can move up and down that housing continuum with relative ease,” Guerette said.
She said sellers are also being put in a tough position where there’s a lot of demand and they try to choose buyers who they believe are best for their property.
“It doesn’t really allow for enough time to really make one of the biggest decisions in your life,” she added.
An influx of residents to Saskatoon, with many looking for a home, also adds pressure to the market and erodes affordability.
“We need to be producing more and faster, especially if we are welcoming more to our city, which is the forecast moving forward,” said Guerette.
She said at its basis, it’s a supply-and-demand question. When there’s too much demand for the supply, prices shoot up.
According to the latest information from the Realtors Association, inventory levels are down 21 per cent year over year, and are down 50 per cent below long-term trends.
The benchmark price of a home in Saskatoon in March rose to $394,000 from $388,300 in February.
