In June, the real estate landscape of Regina painted an interesting picture. While the market witnessed a modest deceleration in sales compared to the same month last year, it remained a robust arena for property transactions, well above the ten-year average trends.

Regina reported 367 property sales this June, reflecting a near 10 per cent year-over-year decline. However, it's noteworthy that, despite this marginal dip, the sales volume still hovered over 11 per cent above the long-term decadal trends. This underlines the continued vitality and resilience of Regina's real estate sector, even amid shifting market dynamics.

The month of June also observed a simultaneous contraction in sales and new listings, resulting in inventory levels that mirrored the preceding month's statistics. The inventory in Regina's property market is nearly 30 per cent lower than long-term trends, hitting its lowest level for June since 2014.

With a scant 2.8 months of supply available, the Queen City's current market conditions are the tightest they've been in any June over the past decade. This squeeze in supply is a major contributing factor to escalating property prices. The benchmark property price in Regina reached $318,700 in June, seeing a modest rise from $316,100 in May.

However, when we turn our gaze to the overall average price, the upswing appears to be more noticeable. The average price across the city nudged up to $334,893 in June this year, reflecting an appreciable ascent from $320,084 in June of the previous year.

In summary, despite a minor slowdown in sales, Regina's property market remains active with prices on an upward trajectory. As inventory levels continue to lag behind the long-term trends, buyers and investors should anticipate a further tightening of market conditions and potentially higher prices in the coming months. This underscores the importance of savvy decision-making and strategic planning for those wishing to navigate Regina's real estate landscape successfully.

Hi, Martin here! In this post, I'll explore the current trends in the Regina housing market, focusing on its steady growth and the availability of affordable housing options. Whether you're a potential buyer or an investor looking for opportunities, Regina offers an attractive market worth considering.

Steady Price Appreciation:
Regina's real estate market has experienced consistent price appreciation over the years. While the rate may vary across different property types and neighborhoods, the overall trend has been positive. This steady growth makes Regina an appealing destination for buyers seeking long-term investment opportunities.

Balanced Market Conditions:
One of the key strengths of Regina's real estate market is its balance between buyers and sellers. This equilibrium creates favorable conditions for both parties, with reasonable time on the market for properties and a fair negotiation environment. The balanced market fosters stability and minimizes price volatility, providing a reliable foundation for investment decisions.

Development and Expansion:
Regina is a city in motion, with ongoing development and expansion projects. This growth not only enhances the city's infrastructure but also creates new opportunities in the real estate market. New residential and commercial projects contribute to the supply of housing options, attracting buyers and investors alike. As the city continues to evolve, it presents a promising landscape for future growth.

Affordable Housing Options:
Regina's real estate market is particularly appealing for buyers seeking affordable housing options. The city has a range of properties that offer excellent value for investment. First-time homeowners, in particular, find Regina an attractive destination due to the availability of affordable housing. With favorable financing conditions and competitive prices, Regina stands out as an ideal place to enter the housing market or expand your investment portfolio.

Conclusion:
Regina's real estate market showcases steady growth, balanced conditions, and affordable housing options. The city's consistent price appreciation, along with its ongoing development and expansion, make it an exciting market to explore. Whether you're a buyer or an investor, Regina offers a range of opportunities worth considering. Stay tuned for more updates on Regina's real estate market, and don't hesitate to contact me or a member of our expert team for personalized guidance on your real estate journey.

Cheers!

I know that many people are hesitant to invest in real estate right now, as interest rates are high. However, I believe that this is actually an excellent time to invest in real estate. 

First and foremost, high interest rates can actually be beneficial for real estate investors. When interest rates are high, it means that borrowing money is more expensive. This may seem like a disadvantage, but it actually creates an opportunity for investors to negotiate lower prices on properties. Sellers may be more willing to accept lower offers when interest rates are high, as they may have trouble finding buyers who are willing to pay the higher prices that were more common when interest rates were low.

Additionally, high interest rates can be advantageous for real estate investors because they tend to result in higher rental rates. When borrowing money is more expensive, it means that fewer people are able to purchase homes, which means that more people are likely to rent. This can and has driven up rental rates, which can be very profitable for real estate investors.

Another advantage of investing in real estate right now is that it is a tangible asset that can provide a hedge against inflation. When inflation is high, the value of money decreases, which means that the purchasing power of your cash and other investments may be reduced. However, real estate is a physical asset that can hold its value during times of inflation. Additionally, rental rates tend to increase during times of inflation, which means that real estate can be a good investment to protect against the effects of inflation.

Finally, investing in real estate can provide steady cash flow over time and properties tend to appreciate in value over time, which can provide long-term growth potential. By investing in real estate now, while interest rates are high, you may be able to lock in a lower purchase price and benefit from potential appreciation in the future. Remember, the property is long term, but the rate is not!

In conclusion, while it may seem counterintuitive, investing in real estate right now, while interest rates are high can actually be an advantageous decision. With the potential for lower purchase prices, higher rental rates, protection against inflation, and long-term growth potential, real estate can be an excellent investment opportunity for those willing to take the plunge. 

New Year, New Home? Set Homeownership Goals Whether You’re Buying, Selling, or Staying Put

The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021.

Home buyers, is this the year you work to improve your credit score, pay down some debt, or save for a down payment? 

Home sellers, we’ve laid out plans for you to get top dollar for your property, including timing your home sale, making your property stand out from the crowd, and investing in your extra living space. 

And even if you’re staying put for awhile, homeowners, you can resolve to improve your status quo by evaluating your home budget, finalizing your home maintenance schedule, or maybe investing in a second property.

So no matter your homeownership status, we’ve got some ideas and advice for you to make this year your best one yet. Read on to learn more.

HOME BUYERS

Resolution #1: Qualify for a better mortgage with a higher credit score.

Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. Therefore, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report and credit score, available directly from Equifax and TransUnion.¹

Your credit score will be a number ranging from 300-900. Generally speaking, a credit score of 725 or higher is considered very good to excellent.² If your score drops below 725, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit.³

Resolution #2: Improve your credit health by paying down debt.  

Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can't spend on your new home, but your debt-to-income ratio also affects your credit score, which we discussed above. The less debt you have, the higher your score and the better mortgage you can obtain.

If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that "extra" money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms.

Resolution #3: Create a financial safety net before applying for a mortgage. 

Don’t forget that buying a home requires some cash as well. The down payment depends on the home’s price, but the minimum is 5% for a purchase price of under $500,000, and closing costs range from 2-3%.^4,5 You’ll also need money for moving expenses and any initial maintenance tasks that might pop up. And as the pandemic taught us, you never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs.

Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it.

HOME SELLERS

Resolution #4: Decide on the right time to sell your home.

In a typical year, spring is when home sales spike in Canada. This might be the best time to take advantage of the price increase predicted by the Canadian Real Estate Association, which says, “The national average price is forecast to rise by 9.1% in 2021 to $620,400.”⁶

But sales price isn’t the only thing to consider. You might not be ready to sell your home yet because you don't want to uproot your kids during the school year or because you need to tackle some minor upgrades before placing your home on the market. 

This means that there is no one month or season that is the perfect time to sell your home. Instead, the right timeline for you takes into account factors such as when you’ll earn the highest profit, personal convenience, and whether your home is even ready to put on the market. A trusted real estate professional can talk you through your specific needs to clarify when to sell your home. 

Resolution #5: Boost your home’s resale value by making your property shine.

Housing inventory is at historic lows across the country, and that means the market is fiercely competitive.⁷ Selling your home in 2021 has the potential to net you a huge return right now, and you can maximize that amount with some simple fixes to make sure your property outshines your neighbors’ for sale down the street. 

In your home, you might need to tackle a minor remodeling project, such as upgrading the flooring or adding a fresh coat of paint. According to one remodeling impact report, simply refinishing existing hardwood floors recoups 100% of the cost at resale, and completely replacing it with new wood flooring recovers 106% of costs.⁸

Outside, you might consider improving your curb appeal by removing a dead bush, trimming a tree that blocks the front window, or power-washing your moldy driveway and sidewalks. In fact, real estate agents say cleaning the exterior of your house can add $10,000 to $15,000 to a home’s sale price.⁹ And improving a home’s landscaping may increase its value by 15 to 25%.¹⁰ 

A good agent should provide custom-tailored suggestions to ensure your property pops inside and out. Ask us about our local insider secrets that will make your home stand out from others on the market.

Resolution #6: Invest in your “extra” living space to meet current buyers’ needs. 

Due to COVID-19, more people are staying at home to work, go to school, exercise, and stay entertained. And these lifestyle changes are showing up in home buyer preferences. For example, according to one study, buyers are looking more and more for homes with formal, outfitted home offices, private outdoor spaces, and updated kitchen appliances.¹¹

So if you’ve got an underutilized room, consider turning it into an office, home gym, schoolroom, or multi-purpose room to meet current home buyer needs and attract better offers on your home. Got some underwhelming space outside? You could turn it into an outdoor entertainment area by adding a firepit, upgrading the patio furniture, or installing a grilling area. Be sure to consult with a local real estate professional before investing in a renovation, however, as each market’s buyers have different tastes.

HOMEOWNERS

Resolution #7: Evaluate your household budget to reflect financial changes.

After this past year, in particular, your financial picture may have changed. Maybe you were furloughed, had your hours reduced, or got a new job further from home. Perhaps you’ve kept the same job, but you’re now working remotely. A work-from-home arrangement could mean less money spent on gas, tolls, a professional wardrobe, and dining out for lunch. 

But this could also mean new (or increased) expenses now that you’re working at home, such as new tech-related purchases, faster Wi-Fi, and higher energy bills. January marks the perfect opportunity to update your income and expenses and review last year’s spending habits, tweaking as needed for 2021.

For more specific ideas, contact us for our free report "20 Ways to Save Money and Stretch Your Household Budget."

Resolution #8: Save money now (and earn more later) with a home maintenance plan. 

Having a schedule of regular home maintenance projects to tackle will save you money now and in the long-term. You’ll avoid some surprise “emergency fixes,” and when you’re ready to eventually sell your home, you’ll get higher offers from buyers who aren’t put off by overdue repairs.

Even if nothing necessarily needs fixing right now, you can lower your energy costs by maintaining and upgrading your home. For example, consider upgrading some features to ENERGY STAR high-efficiency products. You could save 10% in energy costs if you switch out your gas broiler, and up to 45% if you change your windows!^12,13

For a breakdown of home maintenance projects to tackle throughout the year, contact us for our free report “House Care Calendar: A Seasonal Guide to Maintaining Your Home.”

Resolution #9: Invest in real estate for a better standard of living. 

Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021. 

Have cabin fever from the long quarantine? A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer. Just be sure to consult with a real estate professional to get a realistic sense of a property’s true income potential.

Want more information on how a second property fits into your 2021 plans? Request our free report, "Move Up vs Second Home: Which One Is Right For You?"

LET US HELP YOU WITH YOUR 2021 GOALS

Without a plan and a support system, 73% of Canadians will break their new year’s resolutions.¹⁴ Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent to keep you motivated and on track.

As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to us today for a free consultation and commit to a happy and prosperous new year.

Sources:

1. Government of Canada -
   https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html
2. Equifax -
   https://www.consumer.equifax.ca/personal/education/credit-score/what-is-a-good-credit-score/ 
3. Government of Canada -
   https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/improve-credit-score.html 
4. RateShop -
   https://www.rateshop.ca/page-minimum-down-payment-in-canada  
5. Bank of Montreal -
   https://www.bmo.com/main/personal/mortgages/closing-costs/ 
6. Canadian Real Estate Association -
   https://www.crea.ca/housing-market-stats/quarterly-forecasts/ 
7. Canadian Mortgage Trends -
   https://www.canadianmortgagetrends.com/2020/12/tight-market-conditions-keep-home-sales-and-prices-at-historical-highs/
8. National Association of Realtors -
   https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf 
9. House Logic -
   https://www.houselogic.com/save-money-add-value/add-value-to-your-home/adding-curb-appeal-value-to-home/ 
10. Ottawa Citizen -
    https://ottawacitizen.com/life/homes/landscape-tips-to-increase-your-homes-value
11. HomeLight -
    https://www.homelight.com/blog/top-agent-insights-for-q2-2020/
12. Government of Canada -
    https://www.nrcan.gc.ca/energy-efficiency/spotlight-energy-efficiency/2020/10/21/23081 
13. Government of Canada -
    https://www.nrcan.gc.ca/energy-efficiency/spotlight-energy-efficiency/2020/11/26/winter-coming-top-tips-heat-your-home-less/23141 
14. Ipsos -
    https://www.ipsos.com/en-ca/three-ten-31-canadians-will-set-new-years-resolution-yet-three-quarters-73-eventually-break-them 

Sales in Regina were up 1.9%, going from 210 in March 2019 to 214 in March 2020.

Sales were approximately 2.0% below the 5-year average and just over 9.0% below the 10-year average. Year-to-Date (YTD) sales in Regina fell 8.6% over last year, decreasing from 525 to 480.

Sales volume was up 5.3% in the city, going from $62.4M to $65.7M in 2020 (3.4% below the 5-year average). YTD sales volume in the city was $141.5M, a decrease of 9.3% from last year. 

The number of new listings in Regina fell a significant 19.5% from March of last year, going from 534 to 430 (over 13.0% below the 5- and 10-year averages).

Active listings also fell 4.6% in Regina (down from 1,344 to 1,282).

The sales to listing ratio was 49.8% in Regina.

Homes in Regina stayed on the market an average of 68 days in March—down 6.8% from 73 days last year (but still above the 5-year average of 58 days).