New listings moved sharply in the opposite direction as local agents brought 131 new listings to the Saskatoon multiple listing service, up from ninety listings last week and 120 for the same period in 2009. The final week of each month normally sees a high percentage of the month’s expired listings and it’s not unusual for a good number of those get relisted during the same week. They’re not really new, but there’s no practical way to separate them from the others.

Click the image for a larger version of the graph.

It’s also pretty typical to see a large percentage of the month-end expired listings stay off of the system, especially at this time of the year when the market is experiencing a seasonal downward slide in demand. Coming off 2009’s highs, this year’s slide feels a bit more serious than the normal seasonal slowdown so it’s no real surprise that active listings fell this week as some would be home sellers whose circumstances don’t demand an immediate sale, make the gamble and hope for better days next spring. The total inventory of residential listings on the MLS system fell by forty-eight units to finish the week at 1338, which is still well above last year’s total of 1082. Still, this week’s number is the lowest we’ve seen since inventory peaked for the year at 1427 listings the week of June 21-25. Today, there are 782 single-family homes and 476 condominiums included in that grand total, up from 623 and 375 respectively at this time in 2009. That leaves each of those housing types up more than twenty-five percent, year-over-year.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings were slightly higher than they were last week at forty-two. Twenty-four of those properties found their way back on the system during the same week with a fresh MLS number and a “new listing” flag. Another sixty-one Saskatoon home sellers chose to adjust the asking price on their listing in hopes of enticing a buyer to the negotiating table.

The average sale price of a Saskatoon home (houses and condos) slipped again for the second week in a row but remained at lofty levels, well above $300K. This week’s average price was down $2500 from last week when it sat at $313,122 but the closing number of $309,493 was enough to trump the average for the same week last year by almost $15,000. The six-week average selling price pushed higher by $6,000 on the week to $304,573 and moved $19,000 higher than it was for the same period in 2009. The four-week median price inched higher by $1,500 on a week-over-week basis and shattered last year’s number by $21K. Both the six-week average and the four-week median selling prices reached new highs for 2010 this week.

Click the image for a larger version of the graph.

Overbid sales almost disappeared with just one seller managing a deal above the asking price, and by only $600. Eleven others managed to get their price while fifty-six of sixty-eight sales reported a discount averaging $9,758 or three percent of the asking price.

Click the image for a larger version of the chart.

Highlights from the news this week

Big-name Realtors plot rival site
Real estate brokerages to share information
Canada’s Housing Bubble – An Accident Waiting to Happen: CCPA
Housing bubble looms as prices soar
Slowdown hands Carney pause
No housing bust here: CD Howe
Is Canada in a housing bubble?
Home starts growing – Sask housing still lags behind boom years (Regional)
Rate hike could hurt recovery: McGuinty
The end of Canadian real estate insanity
The truth buried beneath the stats: Buyers are looking for a bargain
Canada’s housing boom ends with a whimper, not a bang
City home sales slide in August (Local)
Hard times in the playground
Canadian housing starts will weaken but won’t be infected by the US virus: Journal of Commerce

Have a great long weekend everyone!

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

I had the opportunity to help a few clients purchase a home who had the interpretation they would not be able to enter the housing market for another year. These clients had solid credit, good job stability but they lacked one of the most common first time buyer requirements, a down payment.

In these, like all cases, we explored every option available for a down payment ranging from grants, HBP (RRSP Home Buyers Plan),  a gift from family, borrowed funds (Line of Credit, etc.) but none were feasible for clients.

This left us with one option which only a couple banks offer, a “Lender Cash Back”. This specific program covers the 5% down payment which is paid from the bank and they also covered an additional .5% to help with closing costs or to help increase the clients minimal savings. As with anything today, this is not free. The bank increases your interest rate in order to make back the down payment over 5 years. Today you can get a 5 year fixed rate at 3.65%.  With this program you get the posted rate which today is 5.39%.

So in all cases the bank makes back the full down payment and you end up paying less towards your principle (along with higher monthly payments) due to the higher interest rate. In some scenarios it can get you into a home sooner than expected but I encourage clients to explore all other options before settling for a Lender Cash Back.

The mortgage you choose should always suit your needs, this is just another option available in the market today that not all are aware of. Please feel free to comment or call me at 306-260-9918 to ask any questions you may have.

Have a great weekend.

Riel Syrenne
The Mortgage Group

Saskatoon REALTORS® assisted 313 buyers with the purchase of a home in the month of August. This number was down 20% from August 2009 when 392 homes were sold. Year to date, 2527 homes have changed hands, down 6% from 2009 when year to date numbers stood at 2696. The increase in new home sales has somewhat impacted the resale market.

Click the image for a larger version of the graph.

Increased sales activity in the mid to upper price range homes contributed to the 8% rise in the average selling price in August which stood at $305,866. The average selling price in August 2009 was $282,320. The year to date figure stands at $292,323, up 5% from 2009 when it was $278,193. The highest sales activity remains in the $300,000 to $350,000 price range.

Click the image for a larger version of the graph.

645 properties were placed on the market in the month of August, up 25% from August 2009 when 517 homes were listed. The year to date listing number stands at 5033. Home buyers had 1355 homes to select from at the end of August, on par with last month when 1334 homes were for sale.

Click the image for a larger version of the graph.

In areas surrounding Saskatoon (Warman, Martensville, Delisle, etc.) unit sales were down 6% with 90 properties selling as compared to the same month last year when 96 homes sold. The average selling price was $259,338, down 4% from August 2009 when it was $270,488. Listing numbers were up 25% in the areas around Saskatoon with 248 properties being listed compared to 199 in August 2009.

Residential sale numbers are expected to remain on par or soften slightly for the remainder of the year. Interest rates are favourable, confidence remains strong in the local economy and new home sales continue to build momentum. These are all necessary components to maintain a stable market environment.

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

Canadians are becoming increasingly concerned that, like our neighbours to the south, there may be a housing bubble in Canada.

While the prospect of a bubble has been downplayed by the Bank of Canada, a number of economists have warned that Canada’s housing market is overvalued, which is bankers’ conservative way of suggesting a housing bubble may be afoot.

The CIBC warns a housing correction is in the cards, which is a milder alternative to a full- blown bubble bursting — though there are signs of trouble on the horizon.  For instance, the OECD finds Canada has the highest consumer debt to financial asset ratio among 10 OECD countries, including the U.S.  The Canadian Association of Accredited Mortgage Professionals estimate about 375,000 mortgage holders in Canada are already challenged by their current payments and may not be able to handle higher rates.

Read the CPPA report titled, Canada’s Housing Bubble – An Accident Waiting to Happen here.

Hot on the heels of CPPA’s report, the C.D. Howe Institute releases its own analysis of Canadian housing market and concludes that there is “little likelihood” of a US style housing crash occurring in Canada.

To evaluate the likelihood of a US-style housing market crash in Canada, one first needs to understand what caused the US housing boom and bust. As argued elsewhere, the Canada-US comparison suggests that a decline in underwriting standards played an essential role in the US housing market boom and dramatic bust. While monetary policy was very similar in both countries from 2000 to 2008, housing markets (especially the subprime component) were structured and regulated somewhat differently in each. Unlike in the US, the Canadian subprime market never expanded significantly into newer products, such as interest-only or negative-amortization mortgages, whose popularity grew rapidly in the US from 2003 to 2006. Moreover, while subprime lending increased rapidly in both countries over 2000 to 2006, the Canadian subprime market remains much smaller than that in the US, as subprime lenders accounted for roughly 5 percent of mortgage originations in 2006 – compared to 22 percent in the US (Mortgage Architects 2007).

Mortgage delinquencies support the key role of underwriting standards in what transpired. While mortgage delinquencies began to climb before the recession in the US, they only began to rise in Canada after the economic slowdown began. Moreover, the decline in Canadian house prices between August 2008 and April 2009 did not result in a large increase in mortgage delinquencies.

Read the C.D. Howe Institute’s report, Not Here? Housing Market Policy and the Risk of a Housing Bust here.

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

Canada Mortgage and Housing Corporation (CMHC) released their 3^rd quarter Canadian housing forecast this morning. With hundreds of billions of dollars riding on insured mortgages, nobody will claim that CMHC doesn’t have a fair bit of skin in the real estate market and is not exactly an unbiased source. Just the same, they have a significant voice with the national media and there’s little doubt this report will be all over the news today.

Nationally…

…Sales of existing homes through the Multiple Listing Service® (MLS®) strengthened steadily through 2009 and remained strong for the first half of 2010. For the remainder of 2010, MLS® sales will decline and will stabilize at more sustainable levels in 2011. Overall, 463,800 sales are expected in 2010, followed by 456,000 in 2011.

The average MLS® price is expected to edge lower in the third quarter of 2010 with modest growth resuming thereafter as balanced market conditions curtail the upward pressure on house prices. For 2010, the average MLS® price will be $338,900 while 2011 will see a slight increase to $342,200.

Provincially…

…The slower pace of price increases, coupled with historically low mortgage rates, improved affordability and stimulated housing demand in the first half of 2010.The strong gains in the first half of the year will be offset by a moderation in existing home sales in the second half as mortgage rates rise and pent-up demand is exhausted. Accordingly, resales in 2010 are expected to dip below last year’s annual level before advancing in 2011 on the strength of an improved labour market and increased demand supported by migration patterns.

Existing home prices in Saskatchewan will rise modestly through the balance of the year and going into 2011, reflecting balanced market conditions. Active listings have moved higher and this will ensure price growth remains modest over the forecast period. Accordingly, the average MLS® price will increase to $239,250 in 2010 and to $246,200 the following year.

So there you have it. Even as bubble talk continues to capture the interest of the national media, CMHC chimes in to predict a stable market through 2011.

Read CMHC’s Housing Market Outlook, Canadian Edition is here.

The Saskatoon version of this report should be out in a few days. I will add a link to this post.

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.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

New listings of the same two property types took a significant slide to just ninety homes, a drop of roughly forty percent from 141 last week and just below the ninety-one properties offered for sale on the Saskatoon multiple listing service for the same period last year.

Click the image for a larger version of the graph.

After a few weeks of growth, which is somewhat unusual for the final weeks of the summer season, the inventory of active MLS residential listings leveled off again, losing just one unit over the week to settle at 1386. Of course, at this time last year inventory was in steady decline and had already fallen from its annual peak of 1528 to just 1152 homes, so this year’s number is a little better than twenty percent above last year’s. Today, there are 818 single-family homes and 486 condos showing an active status on our system. Last year at this time there were 676 houses and 385 condominiums for sale in Saskatoon.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings were firm at thirty-nine properties for the third week in a row, and like last week, twenty-one of those made a near immediate repeat performance as a “new listing,” returning for another attempt, most offered at a lower price. Fifty-six Saskatoon home sellers adjusted their pricing strategy this week in hopes of luring a buyer before summer closes.

The average sale price of a Saskatoon home (houses and condos) came in more than thirteen thousand dollars lower than last week at $313,122. The six-week average managed to push slightly higher, gaining about fifteen hundred dollars on the previous week to reach $298,732, an increase of roughly seventeen thousand dollars over the same week in 2009. The four-week median spiked to its highest point this year to pick up a gain of more than ten thousand dollars compared to last week and increasing twice that on a year-over-year basis. Is the growing median a sign that entry-level buyers are putting the brakes on home purchases?

Click the image for a larger version of the graph.

Overbid sales were few, and those that did sell for more than the asking price were mostly new homes that almost certainly included additional improvements not factored into the list price. Six Saskatoon home sellers struck a deal at their price while sixty-nine of seventy-nine firm sales closed below list by an average of $10,152, or 3.2% below the asking price.

Click the image for a larger version of the chart.

Highlights from the news this week

Recovery hopes slip as U.S. home sales tumble
Why America stopped buying houses
Canadian home prices continue to rise
High-end buyers smell a bargain
Home prices direction depends on measure
Rising resale home prices set to stall, Teranet National Bank index says
U.S. home sales continue slide
Four reasons to sell your cottage now

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports ishere.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

In recent years, the failure to obtain proper permits has become a much bigger deal, and in fact, a point of contention that has caused many residential sale transactions to collapse at the last minute. In instances where the transaction can be salvaged (the seller agrees to obtain and close the required permits and the buyer agrees to complete the purchase), it often involves lots of “jumping through hoops” for homeowners and real estate agents. Occasionally, these hoops are hard, if not impossible to clear in a short period of time.

Let’s not debate whether the government has a place in regulating what we do with our private property. As a real estate agent, I’m likely at least as geeked up about your property rights as you are. Insisting that the government has no place to tell you what to do and refusing to play by the rules may be an example of “cutting off your nose to spite your face” when it comes to the resale value of your home.

Building codes are intended to ensure safe construction standards are met to protect occupants from structural failures, potential fire hazards and electrical shock. When a Saskatoon home owner, or a contractor acting on behalf of a home owner obtains a permit for home improvements they commit to completing the work in accordance with current building codes. Ultimately, they allow access to a qualified inspector who inspects the work and verifies that the improvements meet the code. Where deficiencies exist, the inspector will require adequate repairs before the permit can be closed.

When a potential home buyer discovers that improvements were completed in your home without the required permits, they lose the assurances that the work was done correctly and safely. Even if the buyer is comfortable moving forward on that basis, a lender may refuse to provide financing, or an insurer may refuse to insure the home. On the other hand, if the proper permits were obtained everyone who has an interest in the purchase can have some reasonable measure of confidence that the improvements are durable, valuable, and most importantly, safe. Simply put, your home improvements add more value to your property when they are completed with a permit.

More and more, home buyers who discover missing permits after entering into a conditional purchase agreement are insisting that the proper permits be obtained and closed by the seller before the purchase is completed. In most cases, this is completely possible but it is almost always far more difficult and costly to do after the fact. It’s not something that you want to be doing when you’re trying to coordinate a move.

In a short series of future posts we’ll talk about which home improvements require a permit and how home buyers might discover that your home improvements were completed without one.

Mean time, here’s some building permit information from the City of Saskatoon and some electrical/gas permit information from SaskPower.

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

New listings, on the other hand, were a brisk business this week as local agents brought in the largest number of properties for any week in the past three months. 141 Saskatoon homes hit the MLS® system to record a gain of twenty-eight compared to last week, and forty when compared with the same period in 2009.

Click the image for a larger version of the graph.

The inventory of active MLS® listings (all residential) moved higher again for the third consecutive week. It grew by sixteen properties from the week before to finish at 1387, a gain of roughly sixteen percent compared against the same point in 2009 when 1165 properties showed an active status on the system. Condominium inventory actually dropped by six units this week to 482 but remained up sharply from the same time last year when just 380 condos were available. This year’s number is within striking distance of the 488 condominiums that were on the market at this time in 2008 when inventory was within weeks of reaching all time highs for Saskatoon. The number of single-family homes for sale in the Saskatoon market grew by sixteen over the course of the week to reach 827, up from 676 available at the same time last year and still well below the 1,067 houses that were for sale at this time the previous year.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings were steady at thirty-nine properties with twenty-one of those immediately returning for another go at the market, most at a lower price. An additional sixty-two MLS® listings saw a price adjustment last week.

Prices continued on this crazy up and down movement that’s been going since the end of May. This week was up as the average selling price of a Saskatoon home spiked but fell just short of the record numbers for the year at $326,594. The six-week average gained forty-five hundred dollars over last week to reach $297,291, up nearly fifteen thousand from the same week a year ago. The four-week median price swung wildly higher gaining $11,500 from last week to reach $283,750 and finished nearly four thousand dollars higher than it was at this time in 2009.

Click the image for a larger version of the graph.

Overbid sales bounced back to account for nearly ten percent of sales, but four of the six sales reported as having sold above the asking price were new homes. Given the large overbids recorded that brought the average to a stunning $19,163 it’s probably safe to assume that the final tally included additional improvements to the properties that were not included in the asking price. The two resale homes that did go above list averaged just $2600. An additional four sellers completed a deal at the asking price while fifty-eight of sixty-eight sellers agreed to a reduced price with an average discount of $9,902, or roughly three percent of list.

Click the image for a larger version of the chart.

Highlights from the news this week

CREA economist releases and reviews Canada’s July housing stats
Wellesley Institute releases “Precarious Housing in Canada”
House prices forecast to stagnate for several years
Canadian homes sales sink 30% in July
Canadians shouldn’t expect hot deals as market cools
City seeks tenant for Mendel once gallery moves (local)
Report backs spending $2.6M for affordable housing projects (local)
Canada and Saskatchewan open new affordable housing in Saskatoon
Canada’s housing market can’t stay hot forever

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports ishere.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Verbal proposals are most often brought forward at the counter offer stage with comments like, “We really don’t want to waste your time, so would you speak with your client and find out if X is acceptable to them?”

Recently, an agent tried to sell me on the idea of presenting a complete verbal offer to purchase on one of our listings. She said, “My client has to leave town right away. Would you check with your seller to find out if they would take X?”

To her credit, at least she was clear and honest that she was concerned about wasting her time, and her clients, and not trying to convince me that a verbal offer was a courtesy she was extending to us, so as not to waste our time. Still, my reply was, “No, I won’t, but if you’d be kind enough to put it in writing I’d be happy to present it to them immediately.”

Why? Verbal negotiations are reckless and unprofessional. Where a real estate agent is involved, they’re actually illegal.

Section 58 (1) of Saskatchewan’s Real Estate Act

An offer to purchase obtained by a registrant:

(a) is to be in writing, dated and signed by the buyer in the presence of a
witness; and
(b) is to clearly show, prior to execution by the buyer:
(i) the date on which the offer is made;
(ii) the names and addresses of the buyer and seller;
(iii) the street address or legal description of the real estate;
(iv) the price offered by the buyer and the terms and conditions of the
offer;
(v) the amount of deposit, if any, made at the time of the offer and
whether or not that deposit is to form part of the price;
(vi) a brief description and list of any chattels that are to be included in
the price;
(vii) the date of possession by the buyer and whether possession is to be
vacant or otherwise;
(viii) the date of adjustments;
(ix) the time and date by which the offer is to be accepted;
(x) the name, address and telephone number of the brokerage; and
(xi) any other information prescribed in the bylaws.

We get paid good money to represent our clients and to protect their interests. Creating binding agreements, and avoiding misunderstanding and the squabbles that arise from them is part of that. With the standard forms that are provided for us it literally takes ten minutes to complete an offer to purchase. Web based forms can be tweaked and resubmitted for presentation in seconds. Surely, doing it right can’t be considered “a waste if time.” This is, in part, what agents are paid for. Trying to bridge the gap that exists between a willing buyer and seller is never a waste of time when the proper procedures are followed, even if the time spent only makes us aware of what isn’t presently possible.

If your agent is suggesting a verbal negotiation he or she either lacks respect for, or knowledge of the laws that govern our business. Either way, that should get you thinking.

Samuel Goldwyn said, “A verbal contract isn’t worth the paper it’s written on.”

Samuel Goldwyn was right!

Let’s do this right. Let’s do it in writing.

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.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Local real estate agents reported sixty-six sales of single-family detached houses and condos during the past week, a gain of thirteen from the previous week but well below the ninety-one homes that changed hands during the same week a year ago.

New listings finished the week with 113 houses and condos being placed on the market, down from a whopping 130 the week before, but still ahead of the 102 homes offered for sale on the Saskatoon multiple listing service® over the same period in 2009.

Click the image for a larger version of the graph.

For the second week in a row total active listing inventory showed some gains, moving higher by twenty-one properties to close the week at 1371, thirteen percent above where it was at the same time last year. Though the numbers added were small, the increase was enough to eat away at all of the losses that we had seen over the past six weeks, returning us to levels we were at in early July. As the week came to a close there were 810 single-family homes and 488 condominiums showing an active status on the Saskatoon MLS®. At the same time last year, the total inventory amounted to 1213 properties including 723 single-family homes and 395 condos. On a year-over-year basis, condos are clearly up the most showing a twenty-three percent increase. Duplexes, semi-detached homes, mobiles and vacant lots have actually dropped off falling from ninety-five at this time in 2009 to seventy-three today.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings moved higher to thirty-nine properties with twenty-one of those immediately returning for another go at the market, most at a lower price. An additional sixty MLS® listings saw a price adjustment last week.

Saskatoon real estate prices continued in the wild up and down dance that we’ve been experiencing over the past three months. After reaching its highest point this year just last week, an absence of higher end sales saw the average selling price of a Saskatoon home fall to its lowest point since early March to settle at $268,038. The median price tumbled nearly thirty thousand dollars compared to the previous week and none of the five major Saskatoon real estate areas were spared. Area 1, which typically sees a large share of the upper end sales saw its median price decline by $75,000 as just one sale above $500,000 made the board. Still, the six-week median managed to maintain some traction slipping just eight hundred dollars from last week to $292,739, about seven thousand dollars higher than it was during the same period in 2009. The four-week median fell hard losing ten thousand dollars on the week to finish at $272,250, a drop of $2500 compared to the same week last year.

Click the image for a larger version of the graph.

Overbid sales nearly vanished as just two Saskatoon home sellers closed a deal above their asking price. The average overbid was just $100. Eight sellers managed to secure a full price offer while fifty-six of sixty-six buyers ground themselves a bit of a deal and negotiated an average drop of $8,214, or a discount of about three percent of the asking price.

Click the image for a larger version of the chart.

Highlights from the news this week

Kay factors for the housing market
Canada sees ‘dramatic’ housing slowdown
Why real estate slowdown is ‘most dramatic’ in Canada
Global housing rebound loses steam
Demand remains strong for home builders in Saskatoon (local)
Housing starts slip in July
Housing starts ahead of ’09 (local)

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Perhaps agents were just too busy processing new listings to think much about selling. New listing numbers bounced back to one hundred and thirty, the largest number of houses and condos brought to market during any week since the first week of April. Last week’s new listing numbers of eighty-eight were uncharacteristically weak. The same week last year produced one hundred and one MLS® listings.

Weekly reports occasionally show signs of weirdness due to small sample sizes. The previous week’s results were just as strange as this week’s. Given the current feel of the market, we may not have expected sales and listings to come in so close to each other. If you averaged these last two weeks out and placed them on the graph they’d produce an image that is much more along the lines of what we might expect at this time of year – a more gradual decline of both sales and listings but sales would have still taken a good downward step.

Click the image for a larger version of the graph.

Many of this week’s new listings likely came from the pool of fifty-four properties that expired without a sale at the end of July and the beginning of August. I say that because in spite of weak unit sales and strong listing activity, active Saskatoon real estate listings managed to remain fairly steady, gaining just five units on a week-over-week basis, enough to pull the line out of that dip some were hoping it would continue on. There are currently 802 single-family homes and 477 condominiums offered for sale on the Saskatoon multiple listings service®. Duplexes, semi-detached homes, mobiles and vacant lots bring the grand total to 1350 properties, up from 1212 listings at this time last year. For the sixth consecutive week, the inventory of Saskatoon MLS® listings were up over last year and each week, the gains grew. We now see year-over-year growth in our inventory of 11.4 percent.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings dropped off slightly, falling to twenty-seven. Nineteen of those immediately returned as a new listing, most at a lower price. An additional thirty-nine home sellers adjusted their asking price.

Softer sales and stronger listing activity would obviously lead to lower prices, right? Sorry, that’s wrong. This appears to have been a week for high-end activity and the smaller number of sales led to some significant skewing of the numbers. This week produced the city’s second million dollar residential real estate sales, and a couple of others that were approaching that level. In fact, three of this week’s fifty-three sales averaged $885,000 each. Consequently, the average selling price of a Saskatoon home spiked to it highest point this year, $326,443. The six-week average moved up just two thousand dollars from last week to $293,433, about ten thousand dollars higher than it was at this time last year. The four-week median grew by twenty five hundred dollars on the week to $282,250 to record a gain of more than seven thousand dollars compared to the same period last year.

Click the image for a larger version of the graph.

Overbids and at list price sales gained some ground as a percentage of total sales. Six sellers managed a deal above the asking price by an average of $4,733. Five sellers got their full price. Forty-two of fifty-three sellers agreed to a discount averaging 3.3% of the asking price to close the deal.

Click the image for a larger version of the chart.

Highlights from the news this week

RBC cuts fixed mortgage rates
Drop of home sales in July ‘typical’ (local)
Canadian housing markets cool
More banks lower mortgage rates
June new home sales dive 46%
Getting real: Bull run coming to an end for Canadian housing
Interest rates, HST help cool housing sales
Mortgage breakage costs: Let’s stop the nonsense
Shaky days in the housing market
Where to buy? Top ten cities
China starts to slow mortgage lending
Four types of home renovations: Which ones boost value?
What will fly hear Fed say on Tuesday?

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

So, you see, things could be a little better, but they could be a whole lot worse.

Maybe it really is different here.

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

House sales trailed off slightly on a month-over-month basis, but fell quite significantly when compared against last July. The month closed with a total of 228 houses changing hands, down just four from June, but nearly twenty-three percent lower than the 294 sales recorded in July of 2009.

Active listings in the house category dropped at a faster pace than sales. At the close of July, there were 733 detached houses available for a total supply of 3.3 months. That number represents a drop of 0.4 months compared to June, but it’s well above the 2.5 month supply that existed at the same time last year.

The average selling price of a Saskatoon house inched lower losing nearly three thousand dollars compared to June, but remained higher on a year-over-year basis by four thousand dollars. The median selling price of a house slipped even further, falling ten thousand dollars over the month to finish at $301,000, just two thousand dollars higher than it was at this time last year. The three-month average selling price remained towards the peak price for the year at $321,060, down thirty-six hundred from June and up about eleven thousand from July 2009.

Saskatoon condo sales also took a dip, though not nearly as seriously as houses. July closed with 113 firm deals, down seven sales from June and below last year’s numbers by sixteen units.

The number of Saskatoon condos for sale slid slightly for the second month in a row. July closed with inventory totaling 463 units. However, softer sales pushed the total months of supply higher by 0.2 months to close July with a 4.1 supply, roughly thirty percent higher than it was at this time last year when just a 3 month supply of condos existed.

The average price of a Saskatoon condo took a big hit in July after reaching its annual peak in June. It slid more than eleven thousand dollars over the month to settle at $239K, nearly nineteen thousand dollars higher than it was last year during the same month. The median price slid nearly six thousand dollars on the month to $223,000 but managed to maintain year-over-year gains of nearly thirteen thousand dollars. The three-month average selling price inched up on a month-over-month basis to hit its highest number this year, $244,582 and record an annual gain of roughly twenty-nine thousand dollars.

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Home buying activity was down slightly in the month of July with 357 homes selling, a decline of 18% from July of 2009 when 438 homes sold. Year to date, unit sale numbers are down 4% with 2217 homes having sold compared to 2304 by this time of the year in 2009. The majority of the sales activity remained in the $300,000 to $350,000 price range.

Click the image for a larger version of the graph.

The average selling price remained strong at $289,715, up 2% from July 2009 when it was $283,531. Year to date, the average selling price is $290,515, up 5% from 2009 when it was $277,490. The higher average selling price indicates continued strength in the mid-price range homes. In July it took an average of 39 days to sell a home.

Click the image for a larger version of the graph.

Home buyers had 1334 properties to select from at the end of July. Inventory levels decreased from the close of June when 1412 homes were on the market. Listing inventory continues to balance with REALTORS® listing 550 properties in the month of July, down 7% from the same month last year when 594 homes were placed on the market. Year to date, listing numbers are on par with 2009 at 4389.

Click the image for a larger version of the graph.

Softening sales and listing trends were also seen in the areas around Saskatoon (e.g. Martensville, Warman, Clavet and Dundurn). 71 properties sold, down 34% from July 2009 when 108 properties changed hands. The average price increased to $284,158, up 12% from July 2009 when it was $254,123. Listing numbers were down 15% with 230 properties being placed on the market. Year to date, 1643 have been placed on the market in these outlying areas.

Market demand remains strong, interest rates are favorable and job growth continues. Similar market conditions are expected through the remainder of the summer.

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

Listing activity cooled significantly and closed below one hundred units for the second time in July. You have to look back to February to find another week during which new listings were this low and you won’t find another week this year in which sales came so close to matching the listing numbers. Total new listings declined twenty-two units from last week to eighty-eight, three fewer than were listed during the same period in 2009.

Click the image for a larger version of the graph.

Total active listing began to show some signs of taking a direction as the total number of residential properties displaying an active status slid by twenty-four units this week to finish at 1345, the lowest level since the middle of May, but still more than nine percent above levels recorded at this time last year. As July closes, another forty-three listings are due to expire from the Saskatoon MLS® so it’s realistic to expect that total actives will move lower and may even break the 1300 mark by the close of next week.

As of this morning, there are 803 single-family homes and 468 condominiums available on the multiple listing service®. Last year at this time there were 741 and 393 respectively, so houses are about ten percent more plentiful while condo inventory has climbed nearly twenty percent year-over-year.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings increased roughly ten percent over last week to thirty-four units. As usual, about half of those returned for another go brandishing a new MLS® number. An additional seventy-four Saskatoon homes sellers adjusted their asking price. Roughly seventy-five percent of those reductions were on properties priced above this week’s median of $270,000. The upper end market remains a challenge for sellers looking to move a property as buyers are faced with an abundance of choice and practically no pressure to move quickly.

Speaking of lots of choice, it won’t come as a big surprise that high-end condos continue to lead in terms of total months of supply. The owner of the Rumley Distinctive Lofts made an aggressive move this week, significantly reducing prices on the nine unsold units in the building. The price on four of the nine fell by ninety thousand dollars. One came down by one hundred thousand dollars. A collective drop of nearly $650,000 is like a “buy eight, get one free deal” but you’ll still need to produce more than a half million dollars ($569,900) to crack the entry level of this unique and interesting project.

After a few weeks of softening prices all three measures that we track moved higher. The average selling price of a Saskatoon home was $290,455, up about eleven thousand dollars from last week and about the same as it was a year ago. The six-week average price moved higher to $291,426 to record a gain of just over a thousand dollars when compared with the previous week, up about thirty-five hundred from the same week last year. The four-week median saw the greatest gains, up five thousand dollars on the week, and four thousand dollars on the year, to $280,000.

Click the image for a larger version of the graph.

As a percentage of sales, overbids were slightly higher than they have been for a while with six of eighty-four properties going above the asking price. An additional six sellers got their full asking price. Seventy-three sales were closed below the list price by an average of $9,848 or an average discount of 3.3% of the asking price.

Click the image for a larger version of the chart.

Highlights from the news this week

Residential resales predicted to climb: Conference Board (local)
Bankruptcies fall again in May
US home prices rise 0.5% in May
Variable may no longer be the best mortgage
CREA cuts home sales forecast

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

While unit sales pushed higher, new listings moved in the opposite direction for the second consecutive week. Agents brought seventy-seven single-family homes and thirty-three condominium listings to the Saskatoon Multiple Listing Service® this week for a total of 110 new listings, down five properties from last week, but up eight from the same period last year. Still, this was one of the three slowest weeks for new listings since late March when the spring rush really began.

Click the image for a larger version of the graph.

The active inventory of Saskatoon real estate listings continued to show some stubbornness maintaining a near straight line since delivering its first significant drop for the year at the close of June. This morning, there are 1368 active listings in the residential category of the Saskatoon MLS®, a drop of just six compared to last week and higher than it was at this time in 2009 when buyers had 1290 properties to choose from. This morning, buyers will find a selection of 808 single-family homes and 479 condominiums for sale. The balance of the inventory is made up of semi-detached homes, duplexes, mobile homes and vacant land. Most of the year-over-year active inventory gains can be counted in the condo category, which has risen from 406 at this time last year. At the same point in 2009 there were roughly 790 single-family homes available on the Saskatoon MLS®.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings fell to just twenty-nine with sixteen of those immediately returning to the system bearing a new MLS® number. Additionally, forty-eight Saskatoon home sellers made an adjustment to their pricing strategy hoping to meet a buyer before the summer months are behind us.

Home prices continued in that up and down pattern that we’ve seen over the past couple of weeks. This week, down took its turn as the average price paid for a Saskatoon home tumbled twenty-five thousand dollars compared to last week to settle at $279,306. The six-week average took another solid step down dropping more than five thousand dollars from last week to settle at $290,315 and reaching its lowest point since the week of April 5-9, just seven thousand dollars higher than it was for the same week in 2009. The four-week median price of a Saskatoon home followed the other two measures and finished lower on a week-over-week basis by five thousand dollars as it slipped to $275,000. The four-week median price remains up by five thousand dollars on a year-over-year basis but is down by fourteen thousand dollars from its peak weeks in May and June.

Click the image for a larger version of the graph.

Overbidding continued to be a rarity with just two Saskatoon home sellers reporting a sale price that was greater than the list price by an average of $2,724. Seven sellers managed to get every penny they asked. Seventy-nine of eighty-eight sales required an earnest negotiation with the buyer bagging an average discount of $9,287, or roughly 3.3 percent of the asking price.

Click the image for a larger version of the chart.

Highlights from the news this week

Weather to have ‘significant impact’ on Saskatchewan’s economic growth in 2010
Office vacancy rate falls (local)
Bank of Canada ratchets down growth forecast
Inflation rate slows in June
Bank of Canada raises interest rates
EI numbers rise in Saskatoon and Regina (local)
Out of town: Nine country knockouts

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

New listings also slid lower as Saskatoon home sellers offered up seventy-four single-family homes and forty-one condominiums for a total of 115 listings, a drop of nine from the previous week and a gain of just one when compared with the same week in 2009.

Click the image for a larger version of the graph.

A few weeks ago, the total number of residential listings available on the Saskatoon MLS® reached its highest point for the year at 1427 units. Coincidentally, that number pretty much matched the levels we saw in both 2008 and 2009 for very same week. Of course, in 2008 and 2009 inventory levels headed in different directions after that week and the obvious question that came forward was, “Which of the two paths will this year’s inventory follow?” Just a few weeks later, the answer seems to be “neither.” We did see a bit of a drop as listings that expired at the end of June came off of the system, but since then the total number of Saskatoon homes for sale has remained steady. This week, total inventory finished at 1374 units, up just one from last week and higher than it was at this time last year by sixty-four units, or roughly five percent. As of this morning there are 810 single-family homes and 484 condominiums showing an active status on the Saskatoon MLS® system.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings came in at forty-three with just twenty of those actually staying off the market. Twenty-three returned on the same day they were cancelled disguised as a new listing. Sixty-five home sellers adjusted their asking price this week.

Encouraged by two high-end sales that averaged $870,000 each, the average selling price of a Saskatoon home moved higher for the second week in a row and reached $304,676. The six-week average still managed a week-over-week decline of almost four thousand dollars and slipped to $295,514 to finish about fourteen thousand dollars higher than it was for the same week last year. Following four weeks of declines the four-week median sale price took a fifty six hundred dollar gain when compared with the previous week. It closed the week at $279,900, up just nine hundred dollars on a year-over-year basis.

Click the image for a larger version of the graph.

Once again, the majority of reported sales came in at a price that was lower than asking. Sixty-eight of seventy-four successful home sellers gave up an average of $10,221 or 3.3 percent of the asking price. Two sellers hit their number and four managed a deal above the asking price with an average overbid of $5,113.

The changes that we’re seeing in the market really don’t come as much of a surprise to me given that nearly everyone who normally has a voice in the Canadian housing market has warned of a slow down in the second half of the year. It started in May with very marginal declines. The drop in unit sales accelerated in June and we finished the month seventeen percent lower than the previous year. July is definitely feeling even slower. After the close of business on July 15 just 154 sales had been reported so far for the month putting us on pace for total monthly sales of 308 units, assuming the pace continues at its current level. That would amount to a thirty-percent decline over the previous year and sales that are twenty-one percent below the five-year average for July. Add five percent to the inventory of active listings and it a very different market. Here’s hoping that it doesn’t get much worse than that. ☺

Click the image for a larger version of the chart.

Highlights from the news this week

Housing starts rebuild momentum (local)
Home sales continue to drop
U.S. banks repossess homes at record pace
Canadian real estate – A soft landing or something worse?
Competition watchdog, realtors face off in court this April
Home sales down in June (local)
What’s next for the Canadian housing market?
Rise in housing starts forecast for Saskatoon (local)

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Housing starts are rocking the charts once again and you can’t go anywhere in this town without running into some massive non-residential construction project. They’re everywhere.

According to the City of Saskatoon’s most recent population estimate, roughly 223,200 people were calling Saskatoon home as of June 30, an increase of approximately 5,000 from a year ago. That “estimate” is pretty consistent with Statistics Canada’s most recent numbers for Saskatchewan that indicate our provincial population grew by more than 16,000 in the past year to reach its highest point ever.

One can only assume that our ability to continue expanding employment is a driving force in that growth.

New entrants need not fear a sudden adjustment on the lifestyle scale. We know how to have a good time. We know how to blow the dough. A new study (via JenCT), published in the Sask Trends Monitor for June says household spending between 2006 and 2008 grew at three times the national average in Saskatchewan. We found a way to increase spending by an average of 7.3 percent during each of those years as the value of our homes skyrocketed. Credit was cheap and easy to come by. It still is, really.

Now before you start wagging your finger and talking your neighbours down for their financial recklessness, you should know that another new study (via Larry) says that the household net worth of those living in Saskatoon saw a huge increase over the past year, that our household debt is well below the national average and that we’re looking pretty good when it comes to our investment portfolios.

On the surface, this appears to be one recession the people of Saskatchewan won’t soon forget.

Generally speaking, would you say your family is better off or worse off than it was five years ago? I would love to hear your thoughts.

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

New listings also came on strong with 126 home sellers offering a house or condo for sale on the Saskatoon MLS® system, a gain of forty units compared to last week and almost two dozen more than were listed during the same period in 2009.

Click the image for a larger version of the graph.

After tumbling fifty-five units as we entered the month of July to mark the first substantial weekly decline we had seen in 2010, the inventory of active residential MLS® listings snapped back to the near straight line that it had been following for the five weeks prior. Total inventory remained steady at 1373, a gain of just one on the previous week, but fifty units more than were available at the close of the same week one year ago. By this time last year active listings were in steady decline falling almost every week through the balance of the year. While inventory seems to be a bit more stubborn this year, active sellers may be somewhat encouraged that it’s lower now than it was six weeks ago, and that many of the listings that expired at the end of June may remain on the sidelines for now.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings bounced higher to reach fifty-one units but as usual, roughly half of those were immediately re-listed to add to the active listings numbers once more. Most of them came back at a lower asking price. An additional seventy-six MLS® listings recorded a price change over the course of the week.

The average selling price of a Saskatoon home surged back this week, reaching $296,479 and continuing the erratic up and down bounce that has been going on for several weeks. The six-week average inched higher and continued near the peak range for the year growing by nearly three thousand dollars over the previous week. The new number of $298,616 represents a gain to the six-week average of nearly seventeen thousand dollars over the same week last year. The four-week median price showed its fourth consecutive slide producing modest week-over-week declines to finish just below $275,000 for the first time since early April. This week’s four-week median price of $274,350 fell short of the number generated during the same week in 2009 when it was $276,500 and marks the first year-over-year decline in the four-week median sale price since February opened.

Click the image for a larger version of the graph.

The vast majority of the firm sales reported to the Saskatoon multiple listing service® this week showed a selling price below asking (83/90). The average underbid came in at $9,108, a three percent discount. Four sellers reported an above list sale price with the numbers being severally skewed by one new home sale including some extras and produced a sale price that exceeded asking by $60K. With that sale excluded, the average overbid was just $1,475. Three sellers got their full list price.

Click the image for a larger version of the chart.

Highlights from the news this week

First-time buyers want more for less
BMO lowers mortgage rates
Housing market stable (local)
House prices and sales to decline: Royal LePage
Remai buys choice 8th Street site (local)
Drop in home sales may be sign of peak
My mover sounded great on Craigslist
New-house prices rise in May
Entry-level houses prices rise, condos gain most (local)
Calgary tower now Canada’s second tallest building
Prices of new homes rose this spring (local)
House prices level
High marks for Canada’s real estate market

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Single-family detached home sales remained steady compared to the previous month with 232 reported sales, down sharply from June of last year when 298 houses changed hands. The average number of days to sell rose from 26 to 34 on a month-over-month basis, still well below the average selling time of 42 days during June of 2009.

The inventory of active house listings edged up slightly gaining fourteen units compared to the previous month to close June with 836 available properties, up from 818 at the end of the same month in 2009. The lower number of unit sales pushed the total months of available supply marginally higher to 3.7 months.

The average selling price of a Saskatoon house advanced by just a thousand dollars compared to the previous month but gained over $19,000 over the previous year to finish the month at $322,275. The median price paid for a single-family home actually fell $4,000 from May to $311,000 to record a gain of $16,000 compared to June of last year. The three-month average moved higher to $324,671 for a year-over-year gain of nearly $20,000. On a month-over-month basis, the average cost per square foot stayed fairly level but it increased about eight percent on a year-over-year basis from $249 to $270.

While house sales continued to cool for the second consecutive month Saskatoon condominium sales remained strong and stable. 120 units changed hands during the month, up from 117 in the month of May and just slightly lower than the 123 units that sold in June of 2009.

After showing a substantial increase during the month of May, condo inventory declined by 33 units to finish the month at 470 units, nearly 15% higher than it was in June of last year when 411 condos were available. Strong sales and modest inventory declines moved “months of inventory” in the opposite direction of single-family homes. The total months of supply declined by 0.4 to finish at 3.9.

Saskatoon condo prices took another step higher for the third consecutive month reaching $251,376, the highest average selling price since it last peaked in April of 2008. The median price followed climbing roughly $23,000 from June of last year to reach $238,750 while the three-month average grew $27,000 to close the month at $242,102.

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Royal LePage’s House Price Survey for the second quarter of 2010 was released this morning. Here is the release for the Saskatoon area.

SASKATOON, July 7 /CNW/ – The Royal LePage House Price Survey and Market Survey Forecast released today showed solid price increases across most housing types surveyed in Saskatoon. Price gains were strongest for the city’s most affordable homes while above-average inventory levels for higher end homes is leading to a buyer’s market in this segment.

Standard condominiums led the way with year-over-year price gains of 6.3 per cent, selling for an average of $232,833 in the second quarter. Detached bungalows sold for an average of $331,250, up 6.1 per cent from last year. Standard two-storey homes were also up, gaining 5.4 per cent year-over-year, and selling for a second-quarter average of $355,000.

“Standard condominiums experienced the strongest price gains because of affordability,” said Norm Fisher, Royal LePage Saskatoon Real Estate. “First time buyers are trying to get into the market before interest rates go up.”

After peaking in April, sales volume for the second quarter is down approximately 6 per cent over last year with declines accelerating towards the end of the quarter. Bidding wars are rare, and are typically selling below asking price.

“Predictions of a softening market – in terms of the number of homes selling – are starting to come true,” says Fisher. “Sellers need to be aware of that, and price their homes properly.”

This mirrors Royal LePage’s national forecast, which predicts Canada’s residential real estate market will start to slow in the second half of 2010 after two quarters of strong price appreciation and sales activity. While market fundamentals remain strong across most major centres in Canada, sales activity was overly ‘front-loaded’ in the first half of the year and is expected to cool off for the third and fourth quarters. Prices are also expected to steady in the second half of the year.

“We have seen an unusual pattern of activity in the housing market over the past 12 months, with the market experiencing a surge of activity and price increases that peaked in the fall of 2009 rather than spring.  Early 2010 has followed a more typical seasonal pattern with prices and activity peaking in the second quarter,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “An expected increase in the supply of homes on the market will now bring stabilization in prices and in some cities we will see both prices and unit sales decline towards the end of the year. This should not be interpreted as a severe correction but rather a natural reaction to the market having peaked quite early this year.”

The surge of activity in the first and second quarters of 2010 corresponds to a number of significant regulatory and financial industry changes that affected homebuyers over the same period, including an increase in interest rates in the spring, tightening of mortgage lending rules for first-time homebuyers and investors, and the lead up to the introduction of the HST in British Columbia and Ontario.

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

The second quarter of 2010 ended with 1,863 residential unit sales (year-to-date), on par with June of 2009. The unit sales number for the month of June declined by 17% with 364 properties being sold as compared to 441 properties last year.

Click the image for a larger version of the graph.

The average selling price in June was $295,963, up 7% from June 2009 when it was $276,194. This increase indicates strong activity in the mid to upper price range of homes. The $300,000 to 350,000 price range continues to experience the greatest sales activity.

Click the image for a larger version of the graph.

REALTORS® listed 676 homes in the month of June, a similar number to last year when 669 homes were placed on the market. Year to date listing numbers are on par with 3,838 properties being listed for sale. Consumers had 1,412 homes to select from at the end of June.

Click the image for a larger version of the graph.

Sales activity in the smaller communities around Saskatoon (e.g. Martensville, Warman, Dundurn) remained very balanced with 101 units selling. That number was up 3% from June 2009. The average selling price was up 1% at $254,203 and the year to date average selling price in these areas is up 4% to $252,788. Listing numbers were down 4% with 246 properties being placed on the market for sale as compared to 257 in June 2009.

Similar market activity is expected in the third quarter. New home sales are brisk, interest rates remain attractive, job creation continues to increase and regular in migration is taking place. In addition consumer confidence in the local economy also remains strong. All of these are necessary components of a healthy real estate market environment.

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

Local Realtors® reported just fifty-eight firm sales of detached houses and condominiums by the close of business Wednesday, down from eighty-three last week, and below the eighty-nine units sold during the same week a year ago. Condo activity remained relatively strong claiming twenty-four sales while single-family homes recorded thirty-four.

Over the course of the week agents introduced sixty-nine single-family home listings and seventeen condos for a total of eighty-six new MLS® listings, down from 123 the week before and lower than the 119 new listings that entered the system during the same week in 2009.

Of course, a new month also began this week. Six consecutive weeks of year-over-year declines in unit sales took its toll on the monthly sales numbers for the second month in a row. June closed with a total of 364 sales in the residential category, down roughly seventeen percent compared to last year.

Click the image for a larger version of the graph.

After five weeks of flat lining, the residential inventory of MLS® listings finally took a clear direction as month end expired listings pushed the numbers lower. Still, the week-over-week decline of fifty-five units was not enough to prevent listings from moving higher on a year-over-year basis for the first time in 2010 as the week closed with a total of 1372 listings to mark a gain of thirty properties compared to the same time last year. Today there are 828 single-family homes and 470 condominiums showing an active status. Single family home inventory gained just three units over the same period last year while condos jumped forty-seven. Fewer duplexes, semi-detached, mobiles and vacant lots account for the other changes.

Click the image for a larger version of the graph.

Cancelled and withdrawn listings came in at just thirty-five this week with twenty-two of those doing a same day return to the system as a new listing. An additional thirty-one Saskatoon home sellers adjusted their asking price this week.

With more than half of Area 1’s sales being smaller condos, not to mention a lack of transactions in the luxury category, the average selling price of a Saskatoon home slid toward annual lows finishing at just $269,992, about a thousand dollars shy of last year’s number. The six-week average slipped to its lowest point since the week of April 23 finishing the week at $295,933, down three thousand dollars from the week before but up over fifteen thousand dollars compared to the same week last year. The four-week median made its largest single week move since the week of March 12 and fell ten thousand dollars to $275,000, just twenty-seven hundred dollars higher than it was at this time in 2009.

Click the image for a larger version of the graph.

Fifty-one of fifty-eight sales were wrapped up below the asking price by an average of $8,075. After a few months in the high 2’s, the average discount expressed as a percentage of the asking price broke the three percent mark. Three sellers managed to settle at their asking price and four completed a deal above that number recording an average overbid of $2,354.

Click the image for a larger version of the chart.

Highlights from the news this week

Household credit growth slowing: CIBC
Judge denies intervenor status for Realtor and National FSBO Network
U.S. resale prices not expected to hold
Flipping homes can be daunting

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

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.

Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

An example of a seasonally inappropriate photo for July

It’s July 1 today.

I’m not raising this point because I’m concerned you’ll otherwise miss out on the celebrations of the day. I bring it up because there’s about a ten percent chance that your listing is still being promoted with photos showing snow if it was listed between the first of January and the end of April. Even though winter is long gone and spring is now behind us, I managed yesterday to find nearly forty listings that are still being displayed in a prairie winter wonderland setting. Some of them are showing quite a lot of snow.

Anyone who lives in Saskatoon is accustomed to snow, but snow in July is still a crazy idea, one which buyers just won’t understand. It not only looks stupid but it is probably robbing you of any chance that you might have to bag an offer before the snow flies again. If you do get an offer, the buyer will surely feel justified in coming in very low since your home has been for sale for what seems like forever.

It’s not your fault, but clearly this problem won’t be addressed unless you’re prepared to do something about it. Please check your listing online to see if the photos are seasonally appropriate.

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.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

The store, operated by British Columbia businessman Rexy Silva and his daughter Tabitha, opened its doors on April 5th of this year in the retail level of the 2nd Avenue Lofts. Saskatoon had been without a downtown grocer since Extra Foods closed their 3rd Avenue location in 2004.

News is difficult to come by on the closure but Lyndon tells me he heard that the owners are seeking investors and hoping to reopen the store after some “re-vamping.” I’ve also heard that product selection and merchandising were both weaknesses for the store. Perhaps the Uptown Market can find a second life with some help in those areas.

Thanks to Ginger for the heads up on this.

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