As we enter the summer months I am happy to share the warm news surrounding not only the beautiful weather we have had, but also the up-sweep of our promising real estate market, rates and incentives! Sales have shown a climb of 16% this May, proving to be the highest ranking months of 2016 thus far, as we compare the 330 sales closed in May of 2015 to this years’ month of May, which recorded 384 ends.
Regina’s average sale price in May was up 2% at $326,656, when looking at the numbers in comparison to last year. A 2% increase in average sale prices is not an extreme climb; but overall the various market indicators are favourable. Additionally, we have encountered a 6% increase in our year to date sales posted for both the City of Regina and the bedroom communities, showing 1348 sales. Saskatoon recorded an average sale price of $338,153 for the month of May, with 1915 sales recorded for year to date sales. Another promising variable to note is the fact that our rising sales dollar volume of $125.4 million is up 19% from last year in the Regina area.
It is safe to say that the optimistic predictions among the real estate professionals in your community are in fact correct for those who encouraged the forecast of a balanced market making its way. This is now a proven and beneficial turn-around for us all, being that it was a tough last few years during the market correction. Looking onward, I believe this will be unremitting and excel for the remaining summer months. Additionally, statistics show the fall season to be consistently sustaining a healthy market status. So, unless the inventory increases significantly, I do not foresee a buyer’s market revisiting anytime soon.
I am also pleased to mention that there has been a new home buyer incentive implemented called the Saskatchewan Graduate Retention Program – First Home Plan. Approved applicants in the Graduate Retention Program (GRP) can become eligible for an interest free loan of up to $10,000 to use towards the down payment on the first home they purchase in Saskatchewan. The maximum of $10,000 is allocated from the potential $20,000 available via the Graduate Retention Plan. This is a CMHC approved loan, although keep in mind; banks are still implementing their policies and familiarizing themselves with this program, so make sure to have a independent mortgage broker navigate through the different banks for you to help include this loan on your mortgage application. The different banks may structure in the loan on the mortgage application differently depending on their own policies for that specific product. It is also recommended to apply for the initial approval before having your mortgage broker apply this to your financing application. As of June 28th, 2016 230 people have been approved for this loan, after just a few months of this program launching.
Information regarding the Graduate Retention Program First Home Plan was collected from and can be found on the Government of Saskatchewan website: http://www.saskatchewan.ca/
- Individuals receiving the First Home Plan loan are not eligible to claim the Saskatchewan First-Time Homebuyer’s Tax Credit.
- Two or more individuals may combine their First Home Plan loans to put towards the down payment of one home.
- Individuals will continue to claim their GRP tax credits through the Canada Revenue Agency.
- Individuals may be eligible for other home owner programs. Con-tact Saskatchewan Housing Corporation (SHC) for more information.
I am available to make referrals to local mortgage brokers who can help to answer any questions regarding this program and how it will be used to help students contribute this loan to their down payment for their first purchase. If you are looking to apply for a mortgage at this time, I have mortgage brokers on call who also can offer rates as low as 2.29% for 5 years, conditions apply. For more market up-dates, information on incentives, contact me today!