Accurate Pricing Key in Successful 2017 Market

Year over year unit sales for the city of Saskatoon saw a 7% decline in 2016. As at December 31, there was a total of 3,679 transactions recorded versus 3,933 in 2015. The total dollar volume for Saskatoon also indicated a 7% decline by years end. There was also a decline in the number of new listings in 2016 of 5% with 9,290 properties placed on the MLS system in Saskatoon last year. In other words, 38% of the homes that were listed ended up selling which is considered a firm buyers’ market. This ratio is what is referred to as a sales-to-listing ratio. A ‘balanced market’ is when one home sells for every two listed and is considered a balanced market at a 50% sales-to–listing ratio. The market for the month of December was in balanced territory with 191 sales and 392 new listings.

The market surrounding Saskatoon which includes the cities of Martensville and Warman saw a year end decline in unit sales by 11% with a total of 1,010 sales by December 31. The total number of new listings for 2016 in the markets outside of Saskatoon was 3,192, a sales-to-listing ration of just under 32%. The city of Martensville saw a 10% increase in unit sales in 2016 while Warman saw a whopping 35% decrease in units sold from 2015 to 2016. Other bedroom communities surrounding Saskatoon saw very little change in units sold year over year.

A home in Saskatoon took an average of 51 days to sell realizing 96.7% of the asking price on average. “There are buyers out there who are ready to act and are willing to pay market value.” Comments Jason Yochim, CEO, Saskatoon Region Association of REALTORS®, “What this tells me is that if a seller is serious about selling their home the best thing they can do is get sound advice on pricing to the current market we are in. The result is a quicker sale for the maximum sale price. Buyers are well educated and not often fooled into overpaying.” He adds.

The average selling price for a home in Saskatoon in 2016 was just over $350,000 which was only a decline of 1% compared to the average selling price of $354,000 in 2015. This average price was maintained by a year over year increase in the number of homes that sold over $750,000.

The MLS® Home Price Index® is considered to be the most accurate determinant of where a real estate market is trending. The composite benchmark value is an aggregate value of various property types and is used to compare changes in market values and trends. The composite benchmark value has been trending downward slightly since August of 2016. The composite value of $299,700 is down 1.6% from the same period in 2015 and looks to continue downward for the near future.

“2017 is not likely to see a significant change in market conditions, however being properly informed on what those market conditions are and how to properly price is where one of our REALTOR® members is invaluable” adds Yochim. “One of the best ways to stimulate an economy is through a home sale. The average home sale in Saskatchewan generates nearly $50,000 in spin off economic activity. Multiply that by 3,700 transactions.” He adds. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

The month of November saw a decline in sales activity as well as new listings coming on the market in Saskatoon and region. Total dollar volume year to date was $1.65 B, a 4% reduction from 2015 and 18% lower than the same period in 2014.The number of homes that sold in Saskatoon for November was 243 units representing a 14% reduction compared to November 2015. As of the end of last month there was a cumulative total of 3,489 home sales, this is 7% lower than a year ago. The number of homes listed for sale to the end of November 2016 was 8,897. Currently there are1,687 residential properties available for sale in Saskatoon, only the month of January had less product available with 1,612 units. At the current level of sales it would take nearly seven months to liquidate this inventory.

 The average selling price continues to remain virtually unchanged at just over $350,000. Two years ago the average selling price two years ago by comparison was $357,000, at a time when the market was more active. “An increase in sales in the higher end homes has helped to support the average price in the Saskatoon market” states Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. Sales in every price range below $750,000 saw decreases in unit sales however homes priced above that increased year over year. For sales over $1M there were 25 units sold year to date compared to 13 units a year ago. Homes in the price range between $750-800,000 were up 50% year to date over 2015.

 The current sales to listing ratio for November was 37% which is firmly a buyers’ market as it has been all year. Homes are currently taking 50 days on average to sell in Saskatoon with sellers realizing 97% of the asking price. “These statistics tell me that sellers who price to the market will realize a sale in much less time than the average of 50 days and close to their asking price. Those who do not price to market are typically responsible for the low sales to listing ratio.” Comments Yochim. “Buyers are more educated than at any other time and typically know where the market is at.

 There are positives in this quieter real estate market. The recent selling out of the much awaited River Landing condominium project in less than four days proves that location, location, location is key in any market conditions. This occurred in spite of an oversupplied condominium market with somewhere in the neighborhood of 1,000 multi-family units available for sale.

 “The best advice I can give to those who are needing to sell is to get sound pricing, marketing and timing advice from a professionally licensed and trained REALTOR® member of The Saskatoon Region Association of REALTORS®. Real estate is local to specific markets in Saskatoon and every seller’s situation is unique. Impartial and objective advice is critical in a successful sale of residential real estate.” cautions Yochim. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

The month of November saw a decline in sales activity as well as new listings coming on the market in Saskatoon and region. Total dollar volume year to date was $1.65 B, a 4% reduction from 2015 and 18% lower than the same period in 2014.The number of homes that sold in Saskatoon for November was 243 units representing a 14% reduction compared to November 2015. As of the end of last month there was a cumulative total of 3,489 home sales, this is 7% lower than a year ago. The number of homes listed for sale to the end of November 2016 was 8,897. Currently there are1,687 residential properties available for sale in Saskatoon, only the month of January had less product available with 1,612 units. At the current level of sales it would take nearly seven months to liquidate this inventory.

The average selling price continues to remain virtually unchanged at just over $350,000. Two years ago the average selling price two years ago by comparison was $357,000, at a time when the market was more active. “An increase in sales in the higher end homes has helped to support the average price in the Saskatoon market” states Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. Sales in every price range below $750,000 saw decreases in unit sales however homes priced above that increased year over year. For sales over $1M there were 25 units sold year to date compared to 13 units a year ago. Homes in the price range between $750-800,000 were up 50% year to date over 2015.

The current sales to listing ratio for November was 37% which is firmly a buyers’ market as it has been all year. Homes are currently taking 50 days on average to sell in Saskatoon with sellers realizing 97% of the asking price. “These statistics tell me that sellers who price to the market will realize a sale in much less time than the average of 50 days and close to their asking price. Those who do not price to market are typically responsible for the low sales to listing ratio.” Comments Yochim. “Buyers are more educated than at any other time and typically know where the market is at.

There are positives in this quieter real estate market. The recent selling out of the much awaited River Landing condominium project in less than four days proves that location, location, location is key in any market conditions. This occurred in spite of an oversupplied condominium market with somewhere in the neighborhood of 1,000 multi-family units available for sale.

“The best advice I can give to those who are needing to sell is to get sound pricing, marketing and timing advice from a professionally licensed and trained REALTOR® member of The Saskatoon Region Association of REALTORS®. Real estate is local to specific markets in Saskatoon and every seller’s situation is unique. Impartial and objective advice is critical in a successful sale of residential real estate.” cautions Yochim. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

Just moved into a new house and don’t think the color of the walls match your furniture? Or are you just tired of looking at the same color in your living room that you’ve had for the past year? Time to bust out those paint rollers and dress in your oldest clothes to get this job done. But maybe money is a little tight right now, as the holidays are literally just around the corner. So here are 6 ways to get those walls painted without breaking the already broke bank:

1. Check Local Recycling Centers

Most recycling and hazardous waste centers accept old and unused paint cans from residents and businesses. Everyone knows that paint has a very long shelf life, so it’s common to find paint at these centers. Best of all, it’s free

2. Illuminate the Walls

Make sure to have plenty of sunlight or bring out your own lamps to shine on the walls so that you don’t miss any spots on the walls. It is always the worst to finish the job, clean up everything, only to learn a week later that you missed a few spots.

3. Use a Primer

Everyone should know to always use a primer before starting. Ladies know before painting their nails that they need to apply a base coat before painting on the actual color to save the nail. The same applies for walls. The primer will help the paint adhere to untreated surfaces, such as raw wood or unfinished drywall. Also helps if you’re dealing with either stained or rough surfaces that could need more than one coat.

4. Buy the Expensive Brand

Cheaper isn’t always better when it applies to paint. Cheap paint won’t shine as bright, look as smooth, and could always require more coats to achieve a finished look, which will add up that cost. Most high-quality paints, many which already include a primer in the mixture, can go on in one coat. These can cost more per can, but the job is complete with less paint and less time.

5. Don’t Rush for Color

It’s a known fact that there are some people will pick the first color they see to save time, while others will agonize over it for hours. Never rush on this. You will have to look at this color for a while, so it is always good to take your time, even collect some samples and see which would look best. Rushing into a color could result in having to repaint everything after it’s all finished because the mustard yellow you picked out, doesn’t exactly go with Grandma’s couch.

6. Read Up on Finishes

It is always a must to know about the 4 kinds of finishes you can use. These 4 are:

-        Flat: This finish is perfect for interior walls and ceilings.

-        Eggshell: This finish is great for living rooms, bedrooms, as well as dining rooms as its easy to wash and touch up.

-        Satin: This finish is insanely easy to clean, which makes it perfect for any high traffic areas in the house.

-        Semi-Gloss/Gloss: This finish should be mainly used for the trim, cabinets, kitchens, and bathrooms as it gives great coverage and its highly washable.

Following these tips can definitely help you save time, money, and any headaches along the way so that you can get that beautiful living room you have always wanted. Or any room for that matter. 

Home sales in the Saskatoon market last month were up 8% over October of 2015. “This is a very positive change and speaks to consumer confidence in our market,” states Jason Yochim CEO with the Saskatoon Region Association of REALTORS®. Recent changes to lending rules by the federal finance minister were also a contributing factor in activity as buyers scrambled to beat the October 17^th deadline when these changes came into effect. “Regardless of the factors leading to a sale, it is always good to see stronger sales activity.” he adds “every home sale contributes almost $50,000 of additional economic activity in the local economy.”

Strong sales in August and October of this year coupled with an overall decline in new listings has resulted in an 11% reduction in the inventory of active listings in Saskatoon. Active listings peaked at 2,047 units in June of this year and have declined steadily to 1,745 at the end of last month. This will have a positive impact in several areas. It will help maintain the average price as well as start to move the market in the direction of a seller’s market, although we’re not there yet. Total number of sales for Saskatoon year to date were 3,249 compared with 3,457 for the same period last year. The sales-to-listing ratio indicates whether we are in a buyer’s or seller’s market. It is determined by dividing the number of sales by the number of new listings for a period. A 50% ratio is considered balanced. Currently the market is at 42% which is a buyer’s market.

Another positive sign is the days of inventory which determines how long it would take to liquidate the current active listings at the current level of sales. Based on October’s numbers there is currently just over five and a half months of inventory. This is just slightly above the five-year average of five months. The overall dollar volume for the Saskatoon and surrounding market is only down 3% from last year and currently sits at just over $1.5 Billion dollars. Overall dollar volume has remained strong despite a 6% year to date reduction in sales. This is largely due to an increase in sales over $750,000. Year to date there were 51 units sold between $750-800,000 compared to 40 last year. Comparatively, sales were down 10% year to date for homes priced between $250-450,000. “There is no doubt that the recent federal change for homebuyers qualifying for a mortgage will further impact our market with an average price of $350,000” comments Yochim. “It has yet to be seen how much the impact will be.”

The good news for those selling is that sellers are realizing 97% of their asking price. Sellers who choose to list too high over the market are finding it difficult to obtain that sale. The closer the asking price is to market the tighter the offer will be to the list price.

Sound pricing and timing advice can be provided by one of the 640 professionally licensed and trained REALTOR® members of The Saskatoon Region Association of REALTORS®. REALTORS® also subscribe to a strict code of ethics and are dedicated to developing professional standards and continuing education in the real estate profession.

For many the average sale price is used to benchmark where the market is at. Year to date statistics reinforce why that is not a sound practice. As of the end of September, a total of 2,936 unit sales were recorded, a 7% drop from the same period in 2015. By comparison, the average sale price of $351,835 remains virtually unchanged from one year ago. Furthermore, the average sale price for September 2016 was 6% higher than last September. The reason, an increase in the number of properties selling at the higher end of the price range coupled with a decline in more affordable home sales. More specifically, year to date the number of units selling between $300,000 and $500,000 declined by 12% while the number of units selling above $750,000 increased by 20%.

The Home Price Index (HPI) tool was created by the Canadian Real Estate Association (CREA) as a way to more accurately reflect changes in home pricing and predict pricing trends. The HPI uses a starting point of January of 2002 and establishes a “benchmark” value for a typical property type. This value is then indexed over time to reflect changes in the market. The composite benchmark value for a home in Saskatoon in January of 2002 was $115,000. Currently the composite benchmark price is $308,600. This index has changed very little since January when it was at $305,400. This would indicate little change in value over the first nine months of the year and has remained virtually unchanged since June.  New listings for September were down 20% compared to September of 2015. 

“A reduction in new listings has a positive impact on the overall inventory levels in Saskatoon which have been elevated since the spring of 2015”. comments Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. “Ideally we would like to see the number of active listings around 1,500 units” he adds. At the end of September, the number of active listings was 1,841, the five-year average is 1,625 units. The high water mark for active listings was 2,081 in June of 2015.

The number of sales for September was 324 units which is a 9% reduction from last year. Year to date the total unit sales was down 7% compared to 3,167 units a year ago. The average time to sell a home in Saskatoon is currently 51 days, the five-year average is 41 days. These homes have been selling for 97.4% of the asking price. “The key element in the sale of a property is proper pricing, buyers are more educated today than ever before,” adds Yochim.