Buy and Sell Saskatoon Real Estate

Fixed Vs. Variable Mortgages: decisions, decisions, decisions!

As a busy real estate agent in Saskatoon, SK we chat with clients all the time about what is best and of course refer them on to a great mortgage broker. There really isn't a "correct" answer ever because everyone's personal circumstances are unique. But consider the following:

Interest Rates: Opt for stability with fixed-rate mortgages, where a consistent interest rate is your financial anchor. On the other hand, variable mortgages may tempt you with initial savings, but brace yourself for the rollercoaster of fluctuating rates.

Payment Flexibility: Simplify your budgeting with fixed mortgages, offering predictability in monthly payments. Conversely, variable mortgages may kick off with lower initial payments, but their ever-changing nature demands adaptability in financial planning.

Risk Tolerance: If stability and predictability are your priorities, fixed mortgages are the route to take. However, for those ready to embrace some risk in pursuit of potential savings, the allure of variable mortgages beckons.

Long-term vs. Short-term Perspectives: Plotting a course for long-term stability? Fixed mortgages are your steadfast companion. On the flip side, if you're eyeing potential short-term gains and navigating market volatility doesn't faze you, variable mortgages may be the strategic choice.

Economic Considerations: Decode the economic landscape by understanding current and forecasted conditions, including interest rate trends and governmental monetary policies. This knowledge is your compass in the decision-making journey.

Personal Financial Goals: Customize your mortgage to harmonize with your unique financial goals. Whether it's homeownership duration, specific investment strategies, or your risk appetite, aligning your mortgage choice ensures a cohesive fit within your broader financial plan.

As always - reach out if you want to chat about the Saskatoon market and I'll get in touch!

Market Update for October 2023:

  The City of Saskatoon reported 382 sales in October, a yearover-year gain of 20 per cent and 12 per cent above long-term, 10-year trends. New listings failed to offset a sixth consecutive month of above-average sales, resulting in the lowest October inventory levels reported in the Bridge City since 2007. With just over two months of supply in Saskatoon, we continue to see upward pressure on home prices. The benchmark price reached $382,700 in October, up from $381,900 in September and nearly 4 per cent above October 2022. Year-over-year price gains were reported in all property types, ranging from one per cent in semi-detached properties - to an eight per cent increase in townhouse/row-style properties. (Saskatchewan Realtors Association)

Lower inventory of houses = sellers market + higher prices.

If you are buying a home in Saskatoon right now you will find less homes available than usual, making the decisions quicker and you may be offering above asking price. 

If you are selling a home right now in Saskatoon you are likely getting above your expectations and happy with all the showings.

Stage your home correctly and make sure it presents itself nicely and you will be surprised at what it can fetch in today's market!

As always reach out with questions to me anytime.

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Saskatchewan reported 1,259 sales in October, a year-over-year gain of 11 per cent and nearly 13 per cent above long-term, 10-year trends. Above-average October sales in the province can be attributed to gains in the detached, apartment and townhouse/row-style sectors. Despite year-to-date sales remaining slightly below levels experienced last year, Saskatchewan continues to report sales activity much stronger than the 10-year average.

As seen in prior months, supply challenges continued to persist across many regions of the province in October. Inventory levels fell by over 15 per cent compared to last year and remain over 30 per cent below the 10-year average. Adjustments to sales and inventory levels, paired with declining new listings, resulted in the province reporting below five months of supply in October, a 23 per cent year-over-year decrease and over 40 per cent below long-term, 10-year averages.

“Higher lending rates continue to impact both demand and new listings in our market, which is likely preventing even stronger October sales numbers,” noted Association CEO, Chris Guérette. “Prospective move-up buyers are facing challenges amid higher interest rates and ongoing inflationary pressures, and we’re seeing a trickle-down effect with limited supply growth in the lower price ranges, which remain extremely competitive.”

With 4.5 months of supply, the province is reporting the tightest conditions heading into November since 2007. Despite tight market conditions, home prices remained relatively stable this month. Saskatchewan reported a benchmark price of $327,300 in October, down from $328,000 in September and up nearly 2 per cent from October 2022.

“Our market continues to demonstrate its resilience, as many have predicted, and we’re once again reporting strong sales despite inventory challenges, inflationary pressures, and higher lending rates,” said Guérette. “Saskatchewan is affordable, we’re growing at the fastest pace in over a century, and we’re well positioned for stable demand in home ownership.”

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News dropped this week of a new grant I think many people will take advantage of. Here are the details:

"The Saskatchewan Secondary Suite Incentive (SSI) grant program is designed to improve housing affordability by generating supplementary income for homeowners and increase the availability of rental units in our communities. The grant program will provide 35% of the cost to build a new secondary suite at an owner’s primary residence, to a maximum grant of $35,000 per qualifying property.

The SSI is administered by the Ministry of Finance. Participants of this program may also be eligible for the Provincial Sales Tax (PST) Rebate for New Home Construction." 

- https://www.saskatchewan.ca/residents/taxes-and-investments/tax-credits/saskatchewan-secondary-suite-incentive-grant-program

This is great for anyone looking to supplement their monthly mortgage payment with a secondary suite and make it affordable to build one. 

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