A longtime Weyburn realtor, Winston Bailey, said there are many positive aspects to the real estate market in the city and area right now, in a presentation he gave to the Weyburn Rotary Club on Thursday via Zoom.
He noted he’s been in business in the city for 46 years, since he began with a construction company in 1976, and in real estate for the last 16 years, “and I have no intentions of quitting just yet.”
Sharing statistics about how real estate is doing in this area, Bailey noted that provincially the real estate market has had one of its strongest ever starts to a year, according to the Saskatchewan Real Estate Association, with housing values up by one per cent after going down for the previous four or five years.
One factor is the low interest rates, said Bailey, pointing out that on a recent home sale the buyers were able to get 1.79 per cent on a 20-year mortgage with a five-year term.
Comparatively, when he built a home in 1983, the interest rate went down from 14 per cent to 11.5 per cent, “and I said yep, we can afford this — so that’s quite a difference.”
He added that in the last few months, he hasn’t seen any interest rates higher than 2.25 per cent, which can make a large difference in mortgage payments.
Currently the number of houses and other properties on the market has dropped by about 30 per cent, which has the positive effect of quick sales for a seller — unless it’s a condominium unit, which are “very sluggish” right now with 41 condos on the market in Weyburn right now.
Overall, there are about 135 properties on the market in Weyburn right now, including the condos, where normally the city has over 200 properties for sale. Bailey noted that “well over 200” properties sold in 2020, and “that’s pretty impressive. We haven’t seen that for a long time.”
There are few housing starts right now due to the high cost of building materials, said Bailey. He noted his son, Chad, recently built a fishing shack, and a sheet of plywood cost about $60, up from the past average price of around $22-23 a sheet.
The strongest real estate markets right now are in the larger cities, like Regina, Saskatoon and Prince Albert, while in the smaller cities, like Weyburn, Estevan, North Battleford and Kindersley, most of them have a strong presence of the oil industry.
“When the boom was on, it was our cities that grew the most. We’re suffering a little bit right now, but by the same token, we’re not in trouble. I don’t think that’s too negative a thing, I’m still very optimistic,” said Bailey.
Farmland values have been very strong in the Weyburn region, particularly good quality farm land from Yellow Grass, Lang and Colfax areas up to Regina, said Bailey.
He pointed to two recent land sales just north of Yellow Grass, with six quarters selling for $3,500 an acre in one sale,…