A closer look at the Saskatoon real estate statistics for February 2009
The Saskatoon Region Association of Realtors recently reported February results for the entire residential category of Saskatoon real estate, which includes single-family homes, condominiums, semi-detached properties, duplexes, mobile homes and vacant lots. Unit sales totaled 211 properties across all of these property types, and an average sale price of $281,681. Let’s have a look at how houses (single-family detached homes) and condominiums did in comparison to the entire residential category.
After leveling off in January, active listing inventories took an upward turn through the month as February. The stock of available single-family homes (detached houses) grew to 761 units by month’s end, up about 10 percent from January, and sharply higher compared to February 2008 when a dismal 204 Saskatoon houses were offered for sale. Condo inventory took a similar turn growing to 412 units, up from 363 last month. At the close of February last year just 127 condominiums were available on the Saskatoon MLS system.
Following a remarkably strong month for single-family home sales in January, unit sales weakened some in February sliding to 147 units, down from 164 the month before, and off 45 units (-25%) compared to the same month last year. Condominium sales showed an increase of thirteen units over the previous month, but fell substantially on a year-over-year basis to just 53 units, down from 147 units (-64%) during the same month last year.
In spite of weaker sales volumes, single-family homes saw a month-over-month price bounce using all four value measures during the month of February. The average sale price for the month was sharply higher for the second consecutive month rising from $293,073 in January to $305,130 in February but gained just $1,500 compared to the same month last year. The median sale price inched up to $280,000 from $277,450 the month before, but lost some ground over February of 2008 when it reached $287,000. The three-month average increased $1,500 over the previous month, and finished roughly $4,000 ahead of last February’s number of $288,677.
The average price per square foot that buyers paid for single-homes also edged up but the gain over the previous month was smaller (2.5%) than the gain in the average sale price (4%). The cost per square foot increased just one-dollar in area one, compared to 8-dollars in area two, while it fell in areas three through five. Heavier volume on Saskatoon’s east side was enough to push the city wide average to $252 per square foot, up six-dollars from the previous month, and down just one-dollar compared to the same month last year.
Given that the demand for Saskatoon condos was off by 64% on a year-over-year basis you may have expected that prices would have taken a serious hit. Instead, they actually appear to have experienced some real gains on a month-over-month basis. The average sale price increased nearly $6,000 from $220,408 to $226,148, and finished nearly $16,000 higher compared to February of 2008 when the average price of a condo was just $209,507. I will point out that the average size of the condos that sold was also substantially higher at 1,014 square feet this year, compared to just 865 square feet last year. That is distorting the year-over-year numbers. The median price slid to $212,500 from $219,500 the month before, but again, it finished sharply higher than the $192,900 median recorded in February of last year. Note that last year the median price experienced one of those more extreme movements on the graph, due mostly to the size of the homes that sold.
Average price per square foot numbers probably paint a slightly more accurate picture of Saskatoon condo prices. Again, they saw a rather impressive bump from $213 in January to $223 in February, but finished down on a year-over-year basis falling twenty-one dollars from $242 last year. Areas two and three saw large gains while area one remained stable. Area four failed to record a single condo sale for the eighth consecutive month. I’m predicting a fairly serious dip in the purple line on that graph if we ever do sell another. ☺
See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports
I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.
Norm Fisher
Royal LePage Saskatoon Real Estate
16 comments so far. We'd love to hear your thoughts.
April 15th, 2009 at 11:26 AM
building permits take big jump in province in january
http://www.leaderpost.com/business/Sask+bucks+another+national+trend/1358093/story.html
April 15th, 2009 at 11:26 AM
Hey, real estate aside for a minute, I’m looking for some investment advice from some on here. probably a lot of us are in the same boat. Gotta put my rrsp money in something, want to act now, and want to invest in the stock market in North America broadly. I always top up my RBC Growth Fund, but the management fee is pretty high if I recall. Isn’t there some easy S&P tracking fund, or some such? Would like to just grab a pool of big name stocks in the US.
April 15th, 2009 at 11:27 AM
Norm,
As I recall, there were a number of $400K+ properties sold last month- I’m not sure if it was an unusually high number for the month or not. How much do you think this contributed to the rise in the average price, if at all?
Thank you!
April 15th, 2009 at 11:27 AM
Crikey,
Good question. This is what the $400K+ home sales have looked like over the past six months.
February 25/211 = 11.8%
January 22/213 = 10.3%
December 17/162 = 10.5%
November 21/181 = 11.6%
October 23/215 = 10.7%
September 33/246 = 13.4%
February was near highest but there aren’t really wild swings in any months. We did have a $1 million+ home sale in Feb which would have impacted the average by about 5K, but there was also one in January and three others in the months listed.
Mark,
Sounds like you’re after an “index fund.” Your contact at RBC can probably help.
April 15th, 2009 at 11:27 AM
From last thread, Crikey: “I’m in a bit of the same conundrum. Are you thinking of sector-specific funds or something more diversified?”
Wasn’t thinking sector specific, just want to be broadly invested in North American big cap stocks, with the hope of a good run over the next 12 months.
“Sounds like you’re after an “index fund.” Your contact at RBC can probably help.”
Thanks Norm. That sounds right. I self direct them online, so I’ll just have to grab one.
April 15th, 2009 at 11:27 AM
Mark,
Try running a stock search for “ishares” and you should get a couple of hundred results of various index funds. Fairly easy to sort through on GlobeInvestor.com. I don’t own any of these but I understand management fees are very low and they actually trade like stocks. I’m led to believe that you can buy and sell them at their value this minute instead of whatever they’re at at the end of the trading day.
April 15th, 2009 at 11:28 AM
Thanks Norm. The actual ishares site is great for sifting through the options. S&P 500 index fund is what I’m after there I think. Something similar in Canada as well.
April 15th, 2009 at 11:28 AM
Good day, Norm.
I’m encouraged by your analysis of the numbers, but I am still concerned about the future for smaller communities surrounding Saskatoon (50 Km away, or less). Are you seeing similar trends for the “bedroom” community housing market?
April 15th, 2009 at 11:28 AM
Juan,
Sales in those communities were off nearly 55% in February so there aren’t enough unit sales to give any reliable averages. Typically, those communities which are close to Saskatoon (Warman, Martensville, etc) follow city trends fairly closely.
April 15th, 2009 at 11:34 AM
norm is selling the much maligned down town lofts?
now what will be the butt of our jokes?
April 15th, 2009 at 11:34 AM
http://www.macleans.ca/article.jsp?content=n030581A
You want people to leave Ontario for this?
The houses aren’t even cheap!
April 15th, 2009 at 11:34 AM
No, but we were thinking you might eventually want to leave Ontario for this.
http://tinyurl.com/awbgja
captcha: Schmitter 674-2560 (I’m tempted to try it
April 15th, 2009 at 11:35 AM
Wow. That’s a great piece on SK.
captcha: No logging
April 15th, 2009 at 11:36 AM
Correct me if I’m wrong, but wasn’t that CNN story based on what Brad Wall thought?
Hardly objective!
And it’s nice we’re mentioned in one story,
but remember, commodities are down, and by an objective study, Saskatoon is more expensive to live than most places in Canada, some with good job opportunities (Regina, Edmonton, Winnipeg) all Less Dangerous according to Maclean’s.
Doesn’t mean Saskatoon is doing bad,
but one news story based on a what the premier has to say – the day before Maclean’s announces us as the “Most Dangerous City in Canada” is just that.
Maybe next month they can interview the premier of Manitoba, with its slow but steady population and economic growth over the past several decades. Or the premier of Alberta, where Edmonton still offers Highers wages and more affordable housing than Saskatoon – in a bigger, more metropolitan and safer city.
April 15th, 2009 at 11:36 AM
That last thing I need is for -more- people to start moving here. How overpriced are homes going to be with yet another influx of people? $500,000? $600,000?
April 15th, 2009 at 11:36 AM
Folks, I moved here from Victoria, BC 3 years ago, from a housing market that had gone berzerk. When I left, WW II era 750 sq ft homes on postage stamp lots were going for upwards of $350,000, and they weren’t much to speak of. This was in a town with no real industry, except to support government and tourism, and a very high cost of living.
Today, I have a relaxing 35-40 minute door-to-door commute for work and my home is perfect for my needs. If I had to purchase today, even with the changes in the market in the last 3 years, I would still consider my home a good deal, particularly with the current economic situation in this province.
Small town living isn’t for everyone, but I am very happy with my circumstances. I’m originally from Alberta, and had always planned to retire there, but I now intend retire in the Saskatoon area. I like the province and the people.
Any opinions?