Saskatoon – The whole economy changed with the advent of COVID-19 in March, 2020. But prior to that, things were, well, more normal. And that’s why year-over-year realty sales figures in Saskatchewan for January, 2021, stand out, because they are up – way up.
On Feb. 3 the Saskatchewan Realtors Association (SRA) said in a release, “Building off the momentum seen in 2020, the Saskatchewan real estate market started 2021 off strong. Across the province, sales were up over 49 per cent from last January (going from 616 to 919), new listings were down just over five per cent (going from 1,855 to 1,758). Inventories were also down in 18 of the 19 markets that the SRA tracks.”
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“We haven’t seen a January like this since 2012,” said SRA economic analyst Chris Gbekorbu in the release. With new listings down 10 per cent from their historical averages, there are fewer houses being put on the market. At the same time, the rising number of sales combined with falling inventory suggests strong demand for what housing is available. This could put upward pressure on prices and help to encourage potential sellers, according to the SRA. “Although it is only one month and another COVID-like event could slow things down again like it did last March and April, this strong start should help us be optimistic for 2021,” said Gbekorbu.
The SRA noted that while some analysts have suggested that national housing numbers could suffer significantly this year, “most analysts project that home prices will rise and that the economy will see strong growth as we continue to recover from the effects of COVID. Most consumers are also optimistic about real estate, expecting the market to continue to grow and be a good investment opportunity.”
Samantha Krahn, director of external and government relations with the Saskatchewan Realtors Association, said by phone from Saskatoon on Feb. 4, “What is going on is pretty much across the entire province. People are still looking for homes, and there’s definitely less homes out there. So, the ones that are available, people are clamoring for. We saw a lot of pent-up demand that basically drove the market up and we had one of the best years ever, last year, in real estate probably the last five years in almost all of the markets that we actually keep track of things for.
“So it’s pretty extraordinary, considering the pandemic. You know, people really want to find a home and they’re spending more time there.”
This is happening despite an economy that saw thousands in Saskatchewan lose their jobs and businesses fighting to stay alive due to pandemic restrictions. Asked how that squares with the current realty market, Krahn said, “We had the lockdown in March, April and May. We were pretty stagnant; pretty much almost everything was on hold, it felt like in the market. And then June rolled around and things kind of just slowly picked up from there and even this month again, there’s definitely less stock on the market but there’s people out there looking for it.”
She said in Saskatoon, in particular, they are seeing something called a “delayed presentation of offers.” That’s were five to as many as eight potential buyers may view a home, a number of offers are accepted and then at a certain time, they’re all presented to the homeowner. Krahn said that hasn’t happened in probably 10 years, according to some of their members. “It’s definitely a sellers’ market now,” Krahn said.
Various markets
While prices are up about five per cent across the province, she said that Moose Jaw reported on Feb. 3 they’ve seen prices up 61 per cent, from December 2019 to December 2020.
While Moose Jaw is one of the hot spots, southeast Saskatchewan is at the lower end.
Southeast Saskatchewan had some of the lowest numbers highlighted, but even they saw an increase, with sales up 13.3 per cent going from 30 in January 2020 to 34 in January 2021, up 27.8 per cent from the 5-year average (and 12.2 per cent above the 10-year average). The total number of sales in Estevan was flat at 8 and fell 36.4 per cent in Weyburn, going from 11 to 7. Sales in Estevan were 5.3 per cent above the 5-year average and 22.3 per cent below the 10-year average, while they were 14.6 per cent below the 5-year average and 20.5 per cent below the 10-year average in Weyburn.
The number of new listings in south east Saskatchewan fell 1.1 per cent, going from 93 to 92.
In other areas of the province, Melfort sales were up 133 per cent, going from three to seven sales year over year, with the region going from 10 to 22 units sold. It was up 34.6 per cent over its five-year average and 42.9 per cent over its 10-year average. The Melfort region was up 50.7 per cent over its five-year average and 59.4 per cent over its 10-year average.
North Battleford saw sales go from 10 to 28 year-over-year, an increase of 180 per cent. The region went from 33 to 52, up 112.1 per cent over the five-year average, and 131.4 per cent over the 10-year average.
Prince Albert sales went from 15 to 41 year over year for the month of January, an increase of 173.3 per cent. The region saw sales go from 27 to 68, an increase of 91.6 per cent over the five-year average and 80.6 per cent over the 10-year average.
Yorkton saw sales up 77.8 per cent, from nine to 16 year-over-year. The overall region went up from 31 to 84, an increase of 171 per cent. For the Yorkton region, that’s a 68 per cent increase over the five-year average and an 82 .6 per cent increase over the 10-year average.
Swift Current saw the only decrease, with a drop from 18 to 17 sales, year-over-year for January. Even then, it was up 4.9 per cent over the five-year average and 6.2 per cent for the 10-year average. The region was up 7.9 per cent over its five-year average and 9.9 per cent over its 10-year average.
Commercial
Looking at commercial real estate more in depth in the fourth quarter of 2020, Krahn said their economist found that, “COVID has accelerated trends that were already happening; less need for retail space and way more need for warehouse space, things like that,” according to Krahn.
She added, “It’s definitely, I think, accelerated a lot of the trends that we’ve been seeing.
“You look at the southeast part, like Weyburn, Estevan, obviously things are a little bit less rosy down there, I think, probably because of resources and some of that. Same with Calgary, normally one of the hardest markets in Western Canada,” she said.
Asked if we’ve crested, Krahn responded, “That’s tough to say.”
She doesn’t see anything going downwards anytime soon. Right now, everyone is waiting for the COVID-19 vaccines.
Some businesses have seen their staff working from home for nearly a year now. She said anecdotally they are hearing of buyers who are looking at bedroom communities of Regina and Saskatoon – going as far as Moose Jaw, with respect to Regina. “If you can work from home and you’re paying a lot less to live, a lot of people are considering doing that. So, I think that that may be a trend to keep an eye on, too.”
One of the barriers to that is the quality of internet connection they are able to get.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
