2020 was an interesting year for real estate as prices increased due to a buying demand and a limited supply of housing stock. This scenario resulted in a sellers market. Below is what you can expect in 2021 for Saskatoon’s real estate market trends; sales, listings and house prices.
2021 REAL ESTATE TREND #1: SALES NUMBERS
Sales numbers will not surpass 2020 numbers. The level of sales in 2020 only got as high as it did because of the increased demand due to pandemic-related restrictions. There are many variables at play. This makes it difficult to say whether it will be a weak year or a strong year for real estate. Sales numbers, based on Saskatoon real estate trends are ultimately expected to fall relative to 2020.
2021 REAL ESTATE TREND #2: HOUSE LISTINGS
It’s really tough to say what will happen with listings in 2021. A rise in listings is expected based on real estate trends. There are two main reasons:
- People see that the market is really strong and prices have risen so they decide to list their home; and/or
- Many people are in a tougher financial situation than ever before and may be forced to list their home. At this point, there are no major reasons why listings would drop significantly in 2021.
2021 REAL ESTATE TREND #3: HOUSE PRICES
Based on Saskatoon real estate trends, MLS sales prices in 2021 will likely see an increase compared to 2020 due to current low housing inventory. As per usual, apartments, townhouses, and detached houses all have different supply and demand ratios right now. I plan to further analyze these ratios in the near future and explain what they should mean for prices going forward. Average MLS sales price will rise in 2021, with the only obvious exceptions being if there is some kind of economic and financial issues that arise largely as a result of the pandemic measures (i.e. major interest rate increases, job loss, business closures, severe inflation etc.) which are all possible but may not manifest in 2021.
HOME PRICE INDEX TRENDS
When it comes to home price index values, detached house values are expected to rise significantly. Townhouse prices will rise moderately, and apartments to see little movement. Construction should stay strong in 2021 due to the shortage of inventory, especially for detached houses. Now that builders have likely received the signal, the summer of 2021 could be busy for home builders.