3 Key Real Estate Market Statistics & What They Mean For Sellers
by Kent Braaten
on Tuesday, July 7th, 2020 at 12:00pm.
Whether you’re planning on buying a home or selling your property, staying up to date on your local real estate market is essential in any housing transaction. And I’m not just talking about watching for other new listings and recent sales in the neighbourhood. While those are important market indicators to watch, more pertinent data that can give you a clearer picture of current trends can actually be found in market statistics released in reports every month.
Reading these statistics, however, can feel a bit like reading an astrophysics equation if you’re not sure what they mean. It may seem like a jumble of words and numbers that you know are supposed to make sense...but they don’t. Luckily, you don’t need to understand them all. And the few that you do? I’m breaking them down for you right now!
Sales to New Listings Ratio
You’ve heard the terms “seller’s market” and “buyer’s market” before, but how do you really know which we are in? Well, here’s how! The sales to new listings ratio tells you the percentage of homes that sold compared to new listings that hit the market last month. So, if the percentage is showing more new listings than sales (40% and below), this indicates that there is more supply than demand—ergo, a buyer’s market. If the percentage is showing more sales than new listings, though (60% and above), this shows more demand than supply—a seller’s market!
Currently in the Saskatoon real estate market, as of June 2020, the sales to new listings ratio is sitting at about 58%. And as this is not below 40% or above 60%, it means we are in what is known as a “balanced market”. This means that there is a healthy balance of both sales and listings in the market today, though slightly favouring sellers (so if you’re thinking about selling your house, it may just be the perfect time!).
Exactly as it sounds, the average price statistics are all about that happy middle ground for homes listed on the market. These are a great way to get a feel for both the cost of living if you are planning on moving to Saskatoon and also the general price range for homes if you’re thinking of selling. But just because the average price may be sitting at a healthy $322,513, that doesn’t mean you can just go ahead and slap that listing price on your home, too!
It’s important to remember that the average price number falls firmly in the exact middle of home prices in the city. This means that it is factoring in everything from that $4 million property on Saskatchewan Crescent all the way to that $22,000 trailer in Forest Grove.
Depending on a wide range of factors—from square footage to number of bedrooms to the year it was built—your home could fall either above or below the average price, and the only way to know for sure where it sits is to get a comparative market analysis done by your trusted real estate professional.
Sale to List Price Ratio
Another handy ratio for you, the sale to list price comparison gives you the average percentage of the listing price sellers have been getting for their properties! While many, many years ago, this number may have been above 100% (meaning sellers got more than what they listed for), as of June 2020 we are seeing a sale to list price ratio of just over 96%. So, sellers are getting about $12,000 below asking, if we are using the average price.
As a seller, it’s very important to be aware of this number when listing your property. While your REALTOR® may be giving you a listing price of $320,000, you need to keep in mind that the selling price will likely be lower, so use this ratio to help regulate those expectations and help you better assess lower offers you may receive.
When it comes to selling a house, you want to know that you are making the best deal possible for you and your home, so equipping yourself with market knowledge is key. To stay up to date on the latest real estate market statistics, sign up for my monthly newsletter today!