Have you taken the time to browse through the listings in Saskatoon? If you have, you may have noticed a lack of options available, especially homes ranging in price between $300,000 and $500,000. It’s all thanks to the seller’s market that we are currently experiencing!
Seller’s Market vs Buyer’s Market vs Balanced Market
Understanding the difference between a seller’s market, a buyer’s market, and a balanced market is important no matter if you’re buying a home, selling a home, or trying to do both at the same time.
A seller’s market signals that there is more demand for homes than there is supply. A buyer’s market, on the other hand, happens when there’s ample supply but less demand. In a buyer’s market, not only is there more inventory to choose from, but sellers must compete harder for the attention of buyers. In a seller’s market it’s the buyers that are in competition with each other.
Buying in a balanced market is a much more predictable endeavour. With an equal ratio of buyers and sellers, home prices stabilize and the atmosphere of transactions are more relaxed.
Before the Hunt Begins
A seller’s market favors sellers, since they have leverage over potential buyers. With a pool of eager buyers hoping to purchase their home, some sellers may see competing offers, bidding wars, and contracts favoring the seller. Some buyers may even forgo common requests, like home inspections, to make their offer more appealing! And it’s not uncommon for a house to sell for at or above list price in a seller’s market (here in Saskatoon, the benchmark price for single family homes this November was $323,400, up from $306,500 just 6 months ago and up from $306,500 a year ago!). In this type of market, some properties may be purchased by all-cash buyers, who can typically close faster than a buyer who needs to finance the purchase.
In addition to a seller’s market affecting the sale price favorably for sellers, there are other parts of the process that can be affected. The average time it takes for a home to sell is typically less in this type of market. For instance, in November, homes in Saskatoon averaged just 51 days on the market compared to 65 in 2019 and 74 in 2018, this is close to our 8 year low of 50 in 2014. Homes can also sometimes be in such high demand that they never officially get listed, instead they sell through what is known as the “back pocket”. This means the listing agent may first look to their personal network for a buyer or private deals before publicly listing the property.
How Can a Seller Capitalize on a Seller’s Market?
The best way to capitalize on a seller’s market is to work with an experienced local REALTOR®. We will ensure your home is priced “right” and marketed well. This is key in a sellers market, you want to ensure buyer’s don’t pass by your home if you are pricing too high.
With the “right” price your home could receive multiple offers and possibly even achieve over asking. Then, once there are offers on your home, we will help you understand the differences between those potential multiple offers, ensuring you choose the one that will best suit your needs and get you the most for your home. It’s possible you’ll be tempted to accept the first offer you receive, but if you have just a bit of patience in this market, with the help of your REALTOR® you could possibly see a higher offer!
If you’re thinking of listing in today’s seller’s market in Saskatoon, the best place to start is to determine the value of your home. Contact me for your free custom market evaluation today and let’s get started on getting you more for your property!