The real estate market here in Saskatoon and area seems to be losing a bit of the momentum from earlier this year. Having said that, things are still moving rapidly and we are seeing increases in sales volume, the number of sales, as well as overall price of houses in the Saskatoon area.

“The market continues to level off from the highs seen earlier this year,” said Chris Guérette, Saskatchewan Realtors Association’s CEO.

This month-over-month levelling off in activity is expected and is being seen across the country.

“As more people get their COVID vaccines and the economy continues to open up, people’s spending decisions are going to include things other than housing,” said Guérette, “That’s going to temper demand somewhat. But so far, market activity remains positive.”

Sales were up 18.3 per cent in Saskatoon, (going from 513 to 607), up 36.0 per cent in Martensville (going from 25 to 34), and up 23.5 per cent in Warman (going from 34 to 42).

Sales volume was up 28.8 per cent in Saskatoon, going from $171.8M to $221.3M in 2021 (42.9 per cent above the five-year average, and 39.5 per cent above the 10-year average).

In Martensville, sales volume was up 48.6 per cent, going from $7.3M to $10.9M (50.4 per cent above the fiveyear average, and 62.0 per cent above the 10-year average).

In Warman, sales volume was up 29.9 per cent, going from $12.4M to $16.1M (67.2 per cent above the five-year average, and 57.2 per cent above the 10-year average).

The MLS® Home Price Index (HPI) — a more accurate measure of house price trends — varied across different centres in the region. Saskatoon saw the price of the benchmark singlefamily home rise 12.9 per cent yearover-year, going from $293,700 to $331,500. The price of the benchmark single-family home in Martensville rose 9.0 per cent (going from $365,500 to $398,500), and rose by 10.8 per cent in Warman (going from $372,000 to $412,300).

This month we are going to discuss valuation of a single-family home. This seems appropriate given the activity that is happening in the real estate market in Saskatoon and area.

The way that a single-family home in priced is called the direct comparison method. The definition of the direct comparison method is “a property valuation method that is based on the principle that the price paid for a commodity will be equal to the cost of acquiring a substitute under the same market conditions.”

What this means for a homeowner is that when a single-family home is being marketed, it is compared to other homes in the area that are of similar size, style and age.

If you are looking at selling a 1,600-square-foot, four-bedroom, three-bath two-story house, the most accurate way to determine the price is to ask your Realtor to find out what other similar houses in your area sold for. It doesn’t work to compare that 1,600-square-foot, two-story house to a 900-square-foot bungalow.

Another factor to consider is that you must have sufficient number of similar properties in your area in order to do an accurate comparison. If you have 20 other two-story homes in close proximity to the subject property, you will be able to get a good idea of what the market value will be. However, if you are the only house for sale in a small town, deciding on value will be more difficult.

Now, you are going to say, “But Brad, my house has a new bathroom, and we just renovated the kitchen.” or “…we have a beautiful deck, and new flooring, so our house is worth more”.

This is where there is a bit of an art to setting the prices. Part of a Realtor’s job is to understand how much value each of those renovations will add to the price of the property.

As we discussed last month, not all renovations will add an equal amount to the value of the property. Generally speaking, an older house that has had significant renovations will be worth more than an older house that has not had the renovation completed.

Until next month, get out and enjoy the beautiful weather and some of the amazing opportunities that Saskatoon has to offer.

Brad Chisholm is a Realtor and real estate investor based in Saskatoon Sk. You can find him at bradleychisholm.exprealty. com or email him at brad.chisholm@ exprealty.com

-Brad Chisholm