As you may have heard in the news, on social media, or even from a friend, the Saskatoon real estate market in 2021 was unlike any other we have ever seen. With record-breaking sales, low inventory, and high demand, it was the perfect recipe for a seller's market, which, thankfully, many were happy to take advantage of! So what exactly was the breakdown of the real estate market statistics? Here are the highlights:
2021 Home Sales in Saskatoon
Saskatoon closed out the 2021 real estate market at the end of December with 5,403 sales. Not only was this 27% above the sales seen in 2020 and 36.8% above the 10-year average, but it was actually record-breaking for the city's industry. In fact, we didn't just surpass the previous sales record set in 2014, but we blew it out of the water by 19%—meaning we didn't just have a great year for home sales; we had the best one!`
2021 Listings in Saskatoon
While sales may have been at an all-time high for Saskatoon in 2021, new listings just couldn't keep up. With a total of 8,289 new listings in 2021, we were only 10% above last year's level—which, while still good, isn't matching pace with the 27% increase in sales—and actually 0.1% below the 10-year average. This caused our supply levels to drop, tightening market conditions and leading to a few other exciting trends seen this year.
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2021 Inventory & Supply
Saskatoon real estate inventory in 2021 was down 9% compared to 2020 levels and 19% below the 10-year average. Months of supply stood at just 2.91, 28% below last year and 42% below the 10-year average—the lowest levels we've seen in Saskatoon since 2006! Supply simply couldn't keep up with demand, leading us to the significant price increases we saw this year.
2021 Home Prices
In Saskatoon in 2021, the average home price rose to $365,723—up 6% over last year's levels and 7% over the 10-year average. The most significant rises in home prices happened for homes in the $200,000-$499,999 range. However, slight increases were seen in every price bracket and property type on the market. Most notably, single-family homes have seen particular strength, finally recovering from the record-high home prices seen in 2014. Condos, however, though still above last year's levels and in an excellent position for sellers, remained well below their previous highs.
Why & How
Industry experts believe the number one reason for the 2021 real estate boom largely came down to all-time low mortgage rates. Many buyers, particularly first-time homebuyers, could either afford more or finally afford at all. So, with their mortgage pre-approvals in hand confirming their price ranges, they flocked to the listings in droves.
This eager demand for new listings subsequently led sellers to put their homes on the market, as well, whether they were selling after becoming a buyer in this market or simply to see how much they could get listing in 2021. But, with demand so much higher, listings just weren't enough for the hungry market, causing inventory levels to plummet and home prices to rise—the ideal combination for one of the best seller's markets Saskatoon has ever seen!
Moving into 2022, many believe we may see a slow in the market after last year's business, with mortgage rates reported to increase over the next few months. However, we still have not seen signs of that slowing as of yet in January. Sales continue to hold firm, while new listings and active inventory continue to be down in comparison. But the only way to honestly know how the 2022 real estate market will shake out will be to see it in action over the coming weeks.
Wondering if it might be the right time to dive into the market? Contact me, and let's chat about your real estate needs today!
Posted by Kent Braaten on
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