Saskatoon real estate: Week in review (March 10-14 2008)
It was another big week for new Saskatoon real estate listings with 156 residential properties being offered up for sale, the highest number for any week this year. Total active listings settled at 411 units including 251 houses (up from 201 last week) and 116 condos (down from 124 last week). An additional 68 properties are displaying a “pending sale” flag. Taking a quick look back to the same week last year, we can see that there is approximately twice the number of Saskatoon homes available today. New listings have managed to outpace sales for 10 of the last 11 weeks, a positive sign for buyers looking for a bit of balance, if that trend continues.
So far, there is little sign that a growing base of active listings is playing in the buyer’s favour. 97 properties changes hands, delivering one of the largest sales weeks this year, topped only once, the week of February 18-22. Unit sales this week increased about 25% from last week and about 12% from the same week last year.
The number of Saskatoon homes, which sold above the asking price, exceeded the number sold below for the first time this year, accounting for 41% of all homes sold. The average overbid managed to increase slightly from last week to $16,029. Where buyers were able to grind a bit of a deal, the average underbid also increased slightly, pushing the $9,000 mark.
Average selling prices managed to eclipse average asking prices for the third consecutive week, but a number of inexpensive homes sold in area 4 and an active week in condo sales resulted in a lower average selling price than we’ve seen since the week of February 11-15.
Notable sales
- Forest Grove condo at 630 square feet sells 13K over at $183,000.
- Dated Haultain area bungalow at 924 square feet, with no garage fetches $321,000.
- Lawson Heights bungalow at 949 square feet with a single garage goes for $343,000.
- Fairhaven coach home at 1,140 square feet brings $225,000.
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.
Follow our daily updates on Twitter @SaskatoonHomes.
Norm Fisher
Royal LePage Saskatoon Real Estate
There's 71 Comments So Far
May 15th, 2009 at 3:17 pm
I see a bit of balance of creeping into the market. Finally some good news for buyers. It looks as if this spring market will bring more listings and more sales than last year. Even though it seems there will increases until June, it won’t be like last year.(hopefully) This is what I see any way.
Norm,
are most bidding wars in the 250-350k range?
I don’t see too many higher end homes going over list as much.
May 15th, 2009 at 3:18 pm
RBC’s affordability study may put a pretty large dent in demand this spring, and general economic sentiment this year will take the speculator out of the equation. If Alberta sees weakness, you bet we’ll be right there behind them. Now question, have we seen enough “boom” in Saskatchewan to sustain things through an economic slowdown? Or were we the last to the table and the joke of the party… something I’ve been struggling with since last summer. I’m curious about Northstar’s thoughts on that subject.
J.
May 15th, 2009 at 3:18 pm
George,
Great question. Here are some numbers I just pulled for sales done in the last thirty days.
-$100,000 – 13 sales – 1 overbid – .75%
100,000-200,000 – 92 sales – 20 overbids – 22%
200,001-300,000 – 90 sales – 44 overbid – 49%
300,001-400,000 – 83 sales – 44 overbids – 53%
400,001-500,000 – 22 sales – 7 overbids – 32%
500,001+ – 13 sales – 3 overbids – 23%
All price ranges – 313 sales – 119 overbids – 38%
May 15th, 2009 at 3:18 pm
Johny,
“RBC’s affordability study may put a pretty large dent in demand this spring, and general economic sentiment this year will take the speculator out of the equation.”
Of course, that all makes sense, but when was the last time that thins actually made sense here?
If incomes do increase 8% as SREDA is predicting and rates drop .75% like RBC is predicting, I think all bets are off the table for the time being.
May 15th, 2009 at 3:19 pm
Johnny,
Don’t worry about media reports affecting the mentality in Saskatoon. Remember the media doesn’t catch on to things until 6 months after they happen, and even then in real estate it’s very hard for them to not spin everything in a positive light.
Just look at Calgary, they’re still trying to spin it positively that Sales are down 40% and inventory is up 40% year over year. Terrible conditions that unfortunately I’m exposed to since I’m selling in Calgary. Very low activity coupled with no pressure on the buyer, they have time to look around for exactly what they want and find that bargain, there’s no rush to do anything.
I forgot to respond to Heather last week. The reason I would be watching inventory levels like a hawk and get out is because of what’s happened in Calgary. The fundamentals are still ok, I don’t think house prices are too out of whack, but the crush of inventory has swung it to such a buyers market it’s a little scary.
I wouldn’t leave Saskatoon but having just bought I’d certainly think about selling so my position isn’t eroded badly. But we’ll just have to wait and see if Saskatoon cranks up new home production and then really goes over board like Calgary did. One of the things in Calgary that happened right after they starting peaking in housing production is condo production got crazy and now there’s a good dozen or so 150 unit+ buildings coming online this year. There’s something like a grand total of 13,500 total housing units under construction in Calgary right now… when those are finished over the next year what happens if half (7000) are pure speculators and turned lose on a market already at record high inventory levels, I think that’s dangerous as hell. That’s what I’ll be watching for in Stoon (of course not on that scale).
But my position remains, once I sell my house here in Calgary for hopefully close to what I’m asking I will absolutely feel like I caught the last train out of the station. I could see Calgary tanking this year which would shatter everyone’s confidence in the real estate market.
It’s weird having a position in both Saskatoon and Calgary, I’m a bull on Saskatoon and Saskatchewan for at least the rest of the year and a bear that’s growing more bearish by the day on Calgary’s market.
Hope that wasn’t to much of a ramble, feels like I’m really caught up in real estate these days.
Adster
May 15th, 2009 at 3:24 pm
Well Norm,
I take what SREDA, SREB, CMHC, etc have to say with a grain of salt. Income growth has nothing to do with market sentiment so it doesn’t really matter what they say. My fear, as always, is just how much speculation has played in this market.
J.
May 15th, 2009 at 3:25 pm
Johny,
I’m just saying, “if it’s there, they’ll spend it.” Every affordability advantage we’ve seen from 40 year mortgages, to increased income, to lower mortgage rates has been sucked up through increased housing costs already.
May 15th, 2009 at 3:26 pm
Projected growth based on anticipated revenues… kind of like Enron
J.
May 15th, 2009 at 3:27 pm
Johny,
I’m not sure if I fully understand the question. Enough boom to sustain during economic slow down… This is the part I’m not quite understanding. Can you clarify? Are you asking if I think that if the province slows down economically that housing prices will stay the same?
There’s no doubt that 50% gains in 1 year is silly and completely unsustainable. I also think that the $160,000 avg house price of 1 1/2 years ago was just as silly (Comparatively speaking). I think that a $250,000 avg house price is where Saskatoon should be (again, comparatively speaking). I think that any substantial gains this spring and summer won’t be sustainable in the short term solely because of the mentality of the masses. My predictions haven’t changed and are as follows…
Solid gains (15 – 20% through May / June starting in January) so I guess we’ve already seen 5% of that. Then a massive flood of inventory much like what you’re seeing in Alberta right now. In the end, you’ll probably see an avg house price at $250 – $260k next year at this time (Just my opinion).
Saskatchewan has so much to offer ( Oil, potash, Uranium, mining, agriculture, Technology, Fresh water etc, etc. ) I personally think that Saskatchewan is the most diverse economically of anywhere in North America. It’s hard for me to believe that the long term outlook (10 – 20 years) for this province is anything but up.
Some stuff that I get sent to me for my stock trading has some interesting stuff about Saskatchewan. Here it is.
“Right next to the massive bitumen deposits in Alberta, the Saskatchewan oil industry is just heating up now.
But we’re not talking about the heavy oil sands in Alberta…
If you haven’t heard of Canada’s second largest oil producing providence, you will soon. Unlike Alberta, Saskatchewan is proving to be more open to oil investments. While Alberta is raising its royalties for oil producers (as much as 20%), Saskatchewan has repeatedly said it has no plans to do so.
The province is encouraging companies to move in and develop their resources. Companies have been picking up land, particularly in the southeastern section of the south eastern section of the province. This area plays off the Bakken oil formation, and it’s no surprise that land sales and drilling activity has gone through the roof.
Last month’s auction of oil and natural gas rights in Saskatchewan drew a record amount of sales. The auction raised about $197 million. That’s more than double the amount of the previous record of $85 million.
Let’s take a closer look at that auction for a second….
Out of that record $197 million spent, over two-thirds was spent on bids for the Southern part of the province. Oil companies are going to develop the Bakken formation in the Williston Basin. And according to the United States Geological Survey (USGS), the entire Bakken play could hold a potential 400 billion barrels of oil.
Not too shabby.
The best part is that this area is just starting to heat up. Compare last month’s $197 million to the $250 million made from auctions during 2007. 2008 is shaping up to be another record year.
Even if you toss out the fact that oil prices nearly broke past $106 per barrel this morning, interest the Bakken play is going to keep growing in 2008.”
May 15th, 2009 at 3:27 pm
Speaking of the market
My comments a month ago
“The stock market is a good buy right now and it was a great buy 2 weeks ago. It’ll be a great buy about a month or so from now as well. The C-fail pivot should plot soon which should take the Dow back down under 12,000.”
I’m available for consultations
May 15th, 2009 at 3:28 pm
My question was on short-term state of Sask given recent federal economic slowdown “soft-talk”. As we’ve seen with the Saskatchewan hype-machine, sentiment can sway quickly and dramatically. I’m concerned that we’re not in a good position with a lot of inventory on the edge of hitting the market, affordability no longer our trump card, federal economic slowdown, and softer demand. I was looking to get your take on it. I’ll never argue that we’re in a bad position in commodities, etc…
J.
May 15th, 2009 at 3:28 pm
Norm,
While number of sales were up some, the average sale price dropped to 263K from 276K the previous week. This could be the turning point! I’m keeping my fingers crossed. The sales to listings ratio will have to do better than what it is to keep the demand high and bidding wars alive. I’m also glad to see underbids haven’t backed off.
Adster,
Thanks for replying. I’m still unsure as to why you would be concerned if Saskatoon’s market erroded. If you’re planning on staying here for 10 years you’re not going to lose out.
How long will the boom last?:
http://www.globeinvestor.com/servlet/story/RTGAM.20080317.wturnerdiscussion0317/GIStory/
Snow blamed in the East for low sales, what’s to blame in the West?:
http://www.globeinvestor.com/servlet/story/RTGAM.20080317.wturnerdiscussion0317/GIStory/
May 15th, 2009 at 3:29 pm
Northstar,
a think that is great assessment of what is going on in this city and province. It seems you know your stuff.
The one thing I will say about inventory, is how much speculation is in this market? I think there is more play in condo’s than houses but I guess we will see in the future.
I don’t think we will see a huge flood of inventory like Calgary has anytime this year. They have something like 6 months of inventory, right now we have about 1 month of inventory.
There has not been enough developed lots and houses built in the last year to produce an excess of supply.
There are houses not built on last years lots yet. Everybody is behind in building right now. But one day they will catch up, but I don’t think that will be until next year.
This is what I think
sellers market until June or July, then balanced for the rest of the year. As more houses and lots come onto the market for next year and less demand it will become a buyers market. As for prices, it is just an educuated guess.
May 15th, 2009 at 3:29 pm
Northstar,
I see all of 15% over this first quarter. The “average” doesn’t really reflect what’s going on right now. So far this year, we’ve have 58 condo sales at $125,000 or less. There were only 11 of these in the last quarter of 2007. These units are skewing the numbers down.
It must be awfully satisfying for you to be right in nearly all of your predictions, given the dirty beatings that you’ve taken when putting them forward.
Johny,
I’m not “projecting” anything. I’m simply saying that “affordability” will not be as big a factor affecting demand if incomes go up and rates go down.
May 15th, 2009 at 3:30 pm
Johny,
Ya, I think short term ( 1-2 years ) will see some definate corrections. This will be much needed and heathy for this market. I think we could be in trouble as you say if this spring and summer are really stong. If this spring brings only moderate increases then I think the pull back won’t be as deep.
May 15th, 2009 at 3:30 pm
Northstar -
From my own research, I could not agree with you more.
May 15th, 2009 at 3:31 pm
Heather – there will be a correction, but I don’t know if it is going to come as quick as you like.
May 15th, 2009 at 3:32 pm
Hey all, would appreciate feedback regarding following comments:
What is the impact of large commercial developments on resedential building? The U of S is building a new building or addition for the surgeons, the students just got approved for an extension to place riel, there was talk of a vaccination centre and a children’s hospital, as well as the river landing project and 2 other hotels (the old pacific cinema and stonegate.)
What kind of correction is expected? Looking at Norm’s breakdown of sales per price range provides some interesting numbers. Currently on mls, there are 246 properties between 200-400K. There were 265 sales in these categories in the last 30 days. It looks like there is some room for these to go up and possible sustain in the lower end. Over 400K, there are 143 properties listed. Only 35 sales in these categories in the last 30 days. I wouldn’t call this a correction by any means, but it looks like hte market is already dictating a range of affordability.
What are people perceiving as x-factors? One thing that interests me is that from political speak, it seems like the boom, at least in terms of investment and job growth, is still coming. Mr. Wall is saying all sorts of dollars from within Canada and elsewhere will be coming. If this actually happens, what impact will it have?
What are some job opportunities coming to town? The paper named an international engineering firm opening an office here (about 200 positions), and Saskatoon should see some of the recently recruited nurses.
We definitely haven’t overbuilt yet. But, with quotes like 300/square foot like one builder gave me at the homeshow, I know I won’t be anytime soon.
Also, Heather, not sure about how to go about it, but the lot draw people are saying council must quit twiddling their thumbs before they can sell lots. Maybe if enough people called their councillors or drew some attention to it you might get your lot draw sooner.
May 15th, 2009 at 3:33 pm
Northstar,
You make so many predictions it’s impossible to keep up, you’re sure to hit some of them. You said a couple months ago that Dow was going down to 11,000 when it took a large hit, then it recovered. So I thought I should come on here and play the devil’s advocate as I so often do, I wouldn’t want your ego to become overly-inflated since everyone seems to be tooting your horn. :’)
My only prediction is a cooling trend this year for Saskatoon, I have a 50/50 chance of being right. That said I’ll look like a complete fool if I’m wrong, I have no other predictions to fall back on. That’s ok, anyone I talk to seems to think I’m nuts for my real estate outlook in 2008. There are so many people I’ve talked to that just regurgitate what they’ve heard in the news… “They say another 26% in the spring” …not even realizing that’s the province’s predicted outcome, not Saskatoon’s.
I was truly unimpressed with people at the Saskatoon Home Builder’s show when I was there Sunday. Everyone was piled around the jacuzzi/hot tub displays, and there was little interest in the geothermal/solar/environmental displays. It seems when money is flowing freely the rich lose any sense of ethical consumerism.
May 15th, 2009 at 3:33 pm
Heather,
Me and George are not “everybody.”
I think Northstar said that the Dow would “dip below 12,000,” which is not the same as “going down to 11,000.”
May 15th, 2009 at 3:34 pm
Jedi,
I’ve been voicing my displeasure with the city and these lot draws for MONTHS now to anyone who will listen, I don’t know who I can go to to get any support on the matter. The city just tells us that they’re doing the best they can, I don’t know how to argue otherwise.
Like I’ve said before, DON’T ask the big builders for quotes, they’re out of their minds! Go to a smaller contractor, then you could be looking between $180-$200/sq ft.
Cindy,
Anything is possible considering the US economy and the overall slow-down happening in Canada. I’m definitely more bearish than most on here, but stranger things have happened… ie. 2007.
May 15th, 2009 at 3:34 pm
Norm,
No, he definitely said something to the effect of “11,000 here we come”… I remember it distinctly because I was trying to get out of the market at that time, which I successfully did thank God! My max RRSP first time home buyer amount is now safe and I don’t have to worry about market fluctuations. *whew*
May 15th, 2009 at 3:34 pm
My market prediction,
was made on Feb 2 when the Dow was sitting at 12,800. It’s now at 11,900. When I said “11,000 here we come”, what I was saying is that the market is going to break 12,000 in to the 11,000’s. I’m not sure where all these predictions I’ve apparently made are posted. I seem to remember making 2 predictions. The first was about where I saw Saskatoon avg house price in May. The second was the Dow going sub 12,000 which it did hitting a low of 11,692. I think I was pretty accurate if I do say so myself.
I guess somebody needs to keep my ego in line. My wife will appreciate the break
May 15th, 2009 at 3:35 pm
Heather D,
Are you taking into account the cost of the lot in your $180-200 per sq/ft. If your not, add for the lot cost. I cannot see any current builder in Saskatoon building for that price(lot included, pre gst)
I bought a lot after the “boom” started, but before prices really got out of control, for 63,900 (pre gst). I signed a pretty good contract for the house, and am able to supply quite a bit of material, being in the industry(wholesale) and having some great connections. I’m still paying around $230 sq/ft.
I’ve read your other posts, where you are waiting for the lot draws. How can a builder give you a price, based on a future build, with no idea of a start date?
May 15th, 2009 at 3:36 pm
Northstar,
I think you are pretty close with your predictions so far with the Dow in the 11,000’s. and I believe 287,500 for May, right? I think we will slide just underneath that mark in May but you seem to know the market well.
Heather D,
I don’t mean to be tooting Northstar’s horn, but he probably has the best grasp (Norm as well) of this market that I have seen. Maybe he has rubbed people the wrong way but I believe he has told it as he sees it. This is just a blog, nothing more nothing less.
May 15th, 2009 at 3:36 pm
Norm,
Have we really seen 15% since the start of the year? If you took away 2/3’s of those condos you speak of, what would you figure the average would be?
I agree with you as well that if wages do go up an expected 8% (I think that was the number thrown out there earlier) and if rates keep coming down, that there will be more people willing to buy property.
Rate cuts are such a horrible idea!!
May 15th, 2009 at 3:37 pm
Norm,
what is the average price of houses not including condos the last 30 days or Feb? I seem to have missed it or it was not posted. Maybe Northstar will actually be above that number in May without the condos skewing the average.
Jedi,
300, that is including the lot, right? If I didn’t have my house I could afford a dog run with hardwoods and tile, nothing more.
May 15th, 2009 at 3:37 pm
Northstar and George,
Average prices of single family homes.
November – $261,233
December – $272,791
January – $285,379
February – $310,533
Last thirty days – $316,153
May 15th, 2009 at 3:37 pm
Jedi,
I have mentioned before that the long term outlook for the economic growth of the city and province look very promising. In the long run, I really believe we are better off than Alberta. And I have heard of rumblings of big companies coming here. There is alot of potential here. But there is also alot of talk as well. How this plays out, I guess we will see.
It does seem in terms of the economic boom, some sectors have taken off while others have been left in the dust. I have seen a very nice increase in my wage ,but my wife has not.
As for a market correction, I don’t know if we will see one this year. I believe higher prices until June and plateau for the rest of the year. It will come down to how much specualation there is, how many people move to Saskatoon from other provinces, countries. And how many house and condos are built within that time.
The X-factor(s) is implementation of all the talk. If at least half of the stuff that is said is gonna happen, actually happens then we will have our boom. But right now, some of it is some growth but alot of talk. If we have the growth that is said, I just hope for the right management of it. So far city council has done a great job in some aspects of our downtown and other projects. Others, they have $*&^ the bed. You win some, you lose some.
May 15th, 2009 at 3:38 pm
Northstar,
“I guess somebody needs to keep my ego in line. My wife will appreciate the break” Hah!
Wondering,
Those are some great questions. Yes I meant without lot $180-200/sq ft. 2 contractors I’ve met with are building houses right now as we speak for less than $180/sq ft. I’ve taken it one step further and contacted one of the clients involved. These contractors are basing their estimate on current prices:
A) They know their building costs, materials are not going to substantially increase, especially with the US in recession… if anything they might go down in cost.
B) They already have their team assembled and know the current rates, which is important especially post-2007.
C) They are basing it on a June start date.
All contractors right now are making a sh$tload of money, it’s just about finding out which are gouging the least. But you’re definitely right, nothing is guaranteed until a contract is signed. Another reason I encourage people to go with smaller contractors is because the wait is shorter. Both my contractors are ready-to-go! The houses they’re working on presently haven’t been on a waiting list for >1 year, it’s taking them less than 1/2 year to build.
George,
If economists who get paid to figure these things out have different opinions on the fate of Canada in 2008, why do you think Northstar has the best grasp? It’s less radical to give predictions that follow the current trend than it is to predict the opposite trend. That’s why CMHC in 2006 predicted a modest increase for 2007 real estate in SK – even though some people like Norm had figured out there would be a higher demand.
Myself, I’m going with “the faster they rise, the harder they fall” theory. Even Calgary didn’t inflate at the same rate that Saskatoon did, and look at it now. I don’t think we’re far behind. However, if wages in Saskatoon saw a significant increase this year it would help with affordability issues and could give the market a bit more steam.
May 15th, 2009 at 3:39 pm
Wondering,
One thing I didn’t take into account… I’m (going to be) a first-time home buyer. I’m not looking for anything fancy, no granite countertops, a/c, or hardwood! Mostly middle of the road (and some lower-end) options for my house.
May 15th, 2009 at 3:41 pm
Heather,
Just wondering if you missed Northstar’s comments above. Seems to me that you two are in agreement. He said, “definite corrections…much needed and healthy for the market.” This is in fact at odds with the “economists.” They’ve certainly expressed concern about Canada, but they’ve all been particularly bullish on Saskatchewan calling for further increases through 2009.
Given the sharp increases we’ve already seen over Q1, I am of the opinion that we are pushing the brink as far as affordability is concerned. I believe this year’s bull run will probably end faster, and sharper than it did last year. I actually think we could start seeing signs of a slow down anytime now. Obviously can’t be certain but I’ll be surprised (as I have before) if this thing can keep pushing forward. Anyone considering moving from Alberta should almost stop to have their heads examined on the way out, or even before they put their home up for sale.
Do take great care with your selection of a builder. I heard a woman crying on Gormley the other day about the piece of crap house she bought. With every Tom, Dick and Harry building houses after work this is a story that we’ll likely hear many times in the next couple of years.
May 15th, 2009 at 3:42 pm
Northstar,
Missed your point regarding rate cuts. I agree, but it looks as if Saskatchewan may be one of the only spots to have much for inflation. Rate cuts may be beneficial to the 32 million Canadians who don’t live in Saskatchewan, but it’s probably the last thing we need. We really do need to cool this thing off or it could be a painful landing.
May 15th, 2009 at 3:42 pm
Heather,
one point I was trying to make is that with the exception of housing, the boom hasn’t happened here. I remember a time, I don’t think too long ago, that Edmonton was larger than Calgary. Calgary has seen droves of people and part of the downfall in housing right now is because of overbuilding in Edmonton and Calgary. Also, with new royalty rates is seems like there boom is starting to bust.
My question is what happens should things boom here? I agree that prices can’t keep going up and I think my projection of 292 by June is too high(from a long time ago). There is no doubt that Alberta will have an impact on our market. That being said, what if our city were to grow 25-50 thousand in the next 5-10 years?
Again, there is a lot of talk and until we see action there are a lot of unknowns. It seems like last year was based on speculation. My concern is about the potential for growth. Not only housing, but is there a plan in place for infrstructure also?
May 15th, 2009 at 3:43 pm
Norm,
Why would you caution people from Alberta from moving here? I am not saying a caution is necessarily wrong, but really, if I had a significant amount of equity, wouldn’t have to change my quality of living and could escape 2 hour commutes every day (maybe this is a Calgary stereotype), why wouldn’t I move here?
A half an hour a day vs two hours is a lot more time in the gym, with family, on dates with a spouse, practising the golf swing, so on.
If you could pay off a house here, or have a 150K mortgage on a 400+K home, what is soooo bad about moving here? Even a 50K correction would leave them in a pretty good position.
So my household income is 80K instead of 120. You can still live a pretty good life with that kind of change. All my opinion of course. Sorry greedy people for placing time over money.
May 15th, 2009 at 3:44 pm
Jedi,
You’re right that there is much more to consider than money, and this is my frustration with that state of our market talking. I can’t help but wonder though if they wouldn’t be selling their Calgary home at a terrible time only to buy at the peak of our market. Whatever the case, it’s not going to be a fun move.
May 15th, 2009 at 3:44 pm
Thanks Norm,
I also went against all of my “real estate investor friends” advise over a year ago when I decided to sell in Alberta and buy here. I constantly heard “Why are you buying there” and “Nothing is happening in Saskatoon”.
“It must be awfully satisfying for you to be right in nearly all of your predictions, given the dirty beatings that you’ve taken when putting them forward.”
Yes it does.
The rate cut issue is a tricky subject and I’m glad I don’t have that job. When I say it’s a horrible decision, that only based on my gut feel and nothing else.
May 15th, 2009 at 3:45 pm
Heather D,
I didn’t go crazy on my home I’m building either. My wife and I were modest with selections of flooring, we opted for carpet instead of hardwoods(Which in my mind, were quite expensive). We went for a nice laminate instead of granite. Kitchen was nothing top end. It was the plumbing fixtures, like toilets, tubs, taps, etc that really drove the price up. I’m not talking high high end fixtures, but come on, a simple upgrade here, and there, and we are $6000 over the allowance!
I did price out lots again in the same area, and while I paid $63,900 the lots are now going for 89-95,000. Six months later.
I also went with a smaller builder, and my house started in November 07 and we will be moving in the end of May. I will most likely make money on the current house I’m in, but will be using that to pay off student loans, car debt, current mortgage, and put down a deposit on the new house. Doesn’t leave us with much, but we are getting what we want.
As for mortgage rates, please be advised. The Bank of Canada have dropped their rates, but the banks haven’t. They will of course negotiate on the posted fixed rates, but they are not dropping the automatic 3/4 of a percent like the BOC did.
Just my two cents.
May 15th, 2009 at 3:45 pm
Hi Norm, I want to first of all say thank you for taking the time to post this information on a weekly basis; as far as I know, you are the only realtor doing this.
My question is regarding the new MLS system. I used to go to this website: http://www.sreb.com/newListings.php3
But it hasn’t been updated for over 2 weeks now. Where can I go to find the new listings being posted daily?
Thanks again for all your hard work…
May 15th, 2009 at 3:45 pm
Norm,
Yes I was surprised to hear Northstar say a correction is needed. We just disagree on when it will start to happen. (NS: Sorry to talk about you in 3rd person!)
Thanks for the advice with builders, although everything is built and inspected to a certain standard there can always be those who do cheap/fast work. The 2 contractors I’ve met with have shown me the houses they’re working on (which look fantastic!), are under the new home warranty, and I have contact references for both of them. Is there anything else I can do to protect myself?
Jedi,
2007 was some-sort-of-boom, with plenty of people coming in from other provinces/countries and driving up demand, but perhaps not on the same scale as what Calgary/Edmonton have experienced. (Yet our affordability is matched?) If we had a larger boom and our city grew tens of thousands of people each year, this would defeat the purpose of people wanting to escape big city living. :’)
Obviously I am like you. I don’t want to be bothered with more than a 1/2hr commute. (which is why I didn’t buy/build in Warmen or Martensville) My priorities in life are family, friends, and leisure. For many people it seems their possessions are their greatest joy. For Albertans taking a pay cut and selling their house for lower than they could have 1 year ago (and buying at a peak time in SK) will discourage many of them. Not to mention, there are PLENTY of those who like the ammenities of the larger metropolises and would find Saskatoon boring.
Wondering,
I’ll have to keep that in mind about the plumbing fixtures, etc. when we start to build. Out of curiosity, is your lot approx. 45′ wide or so? Those lots are going for around $90K right now. Glad to hear your house is being built in reasonable time, I don’t think people are aware of the disadvantages of building with the larger companies.
I do realize that about the interest rates, I’ve already called my mortgage broker. I’ve heard rates are going to drop again, and that mortgages will follow over the next couple months, although it still won’t match Bank of Canada’s rates.
May 15th, 2009 at 3:46 pm
I don’t forsee the antiboom proceeding as quickly. It is far easier to upbid a house to some astronomical price than it is to devalue that home. It takes months of sitting on the market before people get desperate. It also takes a lot of oversupply and other people successfully underbidding. The measures that occured were – unprecedented to say the least. I would not expect equal unprecedented drops over night.
Just a thought – in the past, when the East suffers vs the West, we, in BC experienced large influxes of Easterners. I think that also occured in AB and other resource rich areas. This may occur in SK now that resources are playing a role in the limelight.
I by no means want to encourage a boom, its just part of the discussion. I do think that now Saskatoon is at a price where people have to think twice about affordability issues. Job wages will play a big role in attracting people to SK and consequently what will happen to the house prices. At the wages people can earn in AB vs SK – its a difficult choice. For BC – also a difficult choice depending on where you live. Forestry in BC has tanked and you have another (20%) of the population that may be looking for jobs in a comparative field. Mining may fit the bill for that. When it tanked in the past, people I knew loaded up a flat deck with equipment and headed to AB where they knew that they could be hired. They hung a sign on the flatdeck and within minutes the phone rang. I also don’t see that level of searching for employee desperation from SK. In the past at airports, I overheard people from out east, just travelling being offered jobs in AB, as they were a warm body that could help fill a crew. I have not yeat heard of that happening in SK yet. So – to some degree I think there is a lot of speculation on SK. The actual development is still in infancy stages to some degree. That may change and it may be why Saskatoon is still booming. All of that could yet change again if demand for any of the resources or a lack of capital investment into SK proceeds from a US recession.
May 15th, 2009 at 3:47 pm
Heather,
Just be involved. Once they start your house, I think you want to be there often watching what’s going on. I would probably attend any inspections that happen along the way.
Best wishes!
Cindy,
In spite of the fact that the stars seem to be well aligned for this province, we certainly can’t ignore what seems to be happening in our national economy, and down south. It strikes me as possible that this little flame could get snuffed before it starts to really burn. I think it’s a very dangerous time for speculation.
May 15th, 2009 at 3:47 pm
CA student,
Thanks for the feedback. This issue with the associations website it supposed to be addressed this week. Mean time, you might try mysaskatoonhome.ca. You can customize your searches, with a sign up, but I won’t bother you.
Updates are done four or five times a day and the new listings are flowing there.
May 15th, 2009 at 3:47 pm
Heather D.,
there are pro’s and con’s with both a small builder and a big builder. What I found is that a big builder, once they start on your house it won’t take too many months to finish it. You are looking at 5-6 months because they use mostly there own guys. And it seems that they do the better work because there is someone with knowledge overseeing the job.
As for the smaller builders, most contract some of the jobs out and usually getting a home built by them takes a bit longer. You will probably pay less but I would be there everyday watching like a hawk with a smaller builder, bigger builder as well, but not as much.
May 15th, 2009 at 3:49 pm
George,
Thanks for the advice. In a normal market you’re probably right about the big builders taking less time because they have an efficient system set-up. But it seems right now most of the big builders are SO far behind because they bought too many lots/accepted too many jobs you’re looking at 1+ year to build with them. The smaller builders that I’ve met with are only taking 5-6 months to complete a house because their work load is manageable. Watching them like a hawk and staying on top of things is definitely a must.
May 15th, 2009 at 3:49 pm
Hi,
I’ve been following this blog for a couple of weeks. My husband and I have just moved here from Australia, and are thinking of buying a condo.
Is there any chance you have the average condo numbers (similar to the average house prices you’ve just posted).
Coming from outside Canada I’m amazed at the difference in price between condos and houses here.
Thanks
May 15th, 2009 at 3:51 pm
As a first timer looking to get into a place, seeing the inventory creep up gives me some optimism. As little as a month ago, it looked like last spring all over again. Also glad to see city council showing at least a little concern for renters with the condo conversion issue – the place I’m in is for sale once again this year, after being sold last year. I cringe whenever I go to the mailbox now, wondering when the next rent increase or possible eviction notice will come.
As an aside, look at mls #300739’s picture for a chuckle. Hard to know which house is for sale, and just wondering if the traffic light comes for no extra cost?
May 15th, 2009 at 3:51 pm
Sam,
I expect to post some February stats today which includes a breakdown between condos and single family homes in the 5 major areas. Thanks for visiting.
Scared renter,
Things are starting to look a little different, and you’re right, inventory is up a fair bit in comparison to last year. 400 active listings is still far too weak to bring much in the way of balance.
Great example of the poor photography that this industry seems to get by on.
May 15th, 2009 at 3:52 pm
Funny, I tried to look at the photo and it is no longer there. Wonder why that may be…
Sask. economy to lead the nation:
http://www.cbc.ca/money/story/2008/03/19/canadianeco.html
May 15th, 2009 at 3:52 pm
Jedi,
Funny indeed. I just had a look and it’s there.
Thanks for the link.
May 15th, 2009 at 3:53 pm
Jedi,
That link you posted is very interesting. Especially the part saying that the bank of Canada is expected to trim rates by 1.5 – 2% by August.
It’s amazing how much money ( er debt ) is being injected in to the U.S. right now. Things will start looking positive again soon starting with the Dow. The real estate market will seem to stablize. “That’s my next prediction”. It seems the international bankers are going to ramp it up again for one final push before they pull the trigger. After all, they love buying private banks and corporations for pennies on the dollar. Just ask Bear Stearns as J.P. Morgan is part of the federal reserve.
May 15th, 2009 at 3:54 pm
An interesting day to make that prediction Northstar
Talk about red murder on the markets.
J.
May 15th, 2009 at 3:54 pm
All right, here is the deal…
Despite my PhD degree I can’t figure out what the hell is going on in Saskatoon. I am a recently hired assistant prof @ the U of S. My girlfriend and I are trying to buy a place to move in before Jul 1st but the market is insane!
We will never of own a “decent” place on our price range (270-300k). Besides, we are really concern about buying right after such an steep price increase.
Can anyone explain to us who is able to afford a house there? What’s the average income in Saskatoon? Is everyone rich?? At this point seems that we are already “out of the market” and we will have to rent (assuming we can find something under 1200/month, that is!) Here (NY) housing prices are way more reasonable (at least taking into account the average income). Maybe I shall turn down the job offer….
/A homeless
May 15th, 2009 at 3:54 pm
Poor homeless,
I’m glad you posted, it’s amazing somebody from New York is saying this about Saskatoon! No, everyone isn’t rich here, but no doubt the rich are getting richer.
Many people feel Saskatoon’s real estate has become overpriced and it should see some correction in a year. I’m more optimistic and think something’s going to give this year. Our vacancy rate is a big problem, so if you’re looking to rent your options will be extremely limited. Everything is currently up in the air, with the volatility in the U.S. and Canada’s slowing economy… it’s a bit helter skelter.
That being said, Saskatoon is a nice place to live… for the meanwhile. It’s nowhere close to the feel of a big city. Do you have family or friends here, have you visited before? When is the start date for your new job?
May 15th, 2009 at 3:55 pm
Poor homeless,
I can imagine that this is not a great deal of fun for you. Prices are through the roof and finding a “decent” house for 275-300 has become a challenge.
The “average income” here was about $742 per week in December of 2007. I believe I heard it’s up about 2% since then. It’s obviously a challenge for anyone earning at that level to enter this market.
Prices have been driven up by a sudden interest in our province which includes former Saskatchewanians moving back home and a whole hell of a lot of investment speculation.
I don’t know how long you plan to be in Saskatoon. If it’s less than a few years renting might be the better alternative, though as Heather suggested, that won’t be easy either.
None of the “economists” who report on real estate are calling for price declines but that’s not out of the question given the large increases we’ve seen and the fact that local incomes won’t support these prices. If people keep coming, I believe that the best case scenario is stabilization. If that trend stops, we’re in for some tough times moving things back to realistic levels.
Best wishes.
May 15th, 2009 at 3:55 pm
Dear ‘Homeless’,
I will be sure to shed a tear for you.
cordially,
a poorer than you but not nearly ‘poor’ person.
May 15th, 2009 at 3:56 pm
Unapologetic. I wont apologize either for calling you an idiot. A person that has earned a PhD (sometimes known as piled higher and deeper) has worked darn hard to get that degree and given up opportunities to earn an income while they pursue a higher education. That someone with a PhD offered a Job in a “University Town = Saskatoon” should frighten the crap out of some people. It is a pretty good signal that Saskatoon is way out of wack of where it should be.
Dear Homeless – I was in a similar position a number of months ago. Reached the conclusion that we could not stake our finances in Saskatoon and left for greener pastures where the incomes were more reasonable and prices had acclimatized over long periods. Good luck in your endeavors, Saskatoon is a beautiful city, but, I did a few months in New York for work, and have to say I was equally impressed!
May 15th, 2009 at 3:56 pm
Cindy,
Over the years I have learned to take my idiocy in stride.
Nevertheless, a person referring to themselves as poor and homeless, despite their ability to afford a fairly substantial mortgage, reeks of self-entitlement.
May 15th, 2009 at 3:57 pm
Cindy,
It sure scares the crap outta me! LoL
unapologetic,
You reek of callum. I think “Poor Homeless” was making a sarcastic statement regarding the situation here in Saskatoon, it IS pretty ridiculous. I also think that educated people shouldn’t have to pull out a 40-year mortgage just to be able to afford a modest house here! Maybe in New York, or Vancouver, but not here.
May 15th, 2009 at 3:57 pm
I don’t see that wanting to afford something with a price range of 275-300 reeking of self entiltement. I would see that as someone that says oohh poor me, I can’t afford the 500-million dollar range. In Saskatoon, 275-300 does not buy much, and the fact that a young couple of “D.I.N.K.”s cant afford a house (maybe a condo or townhome is not in their interest if they are looking to procreate soon), is disconcerting to say the least, as one can only imagine that others are in even worse circumstances financially. So I see it as a red flag for affordability and potential crisis to come.
So, “Homeless” does not reek of entitlement, merely, someone in the same boat as hundreds (if not thousands) of others in Saskatoon. You, however reek of narcissism.
May 15th, 2009 at 3:57 pm
Cindy,
After looking up narcissism in the dictionary, I have to say that you may just be right. Although when I looked up DINK, it couldn’t have meant what I thought it did. But that’s beside the point.
I too think the housing prices are ridiculously out of whack here in Saskatoon. But again Cindy, that’s not the point.
I think you said it yourself when you said that a condo or townhouse or small bungalow in avalon or whereever may not be their style. Boo-frieken hoo.
May 15th, 2009 at 3:58 pm
A Poor homeless,
There are many of us locally that wonder the same question as you….about who is able to afford a house here…if you bought before the prices went retarded then you were extremely lucky. I think a lot of people that can afford it here, either have a significant downpayment from selling thier previous house, are farmers that decided to move into the city after selling thier equipment and land, young spoiled kids who’s parents have ‘invested’ in thier kids by buying a property by refinancing thier own house that their kids tell thier friends that ‘they will have to pay them back’ but never really do….hrmmm and basically 2 steady income folks…if both people make 40-45 grand or more i think they can swing it too.
I don’t think you are being selfish or snobbish in saying you can only afford a certain range. It’s insane up here and for no good reason. There aren’t that many amenities, no beaches, etc…it is a beautiful city mind you, but i personally would STRONGLY reccommend taking a small ‘vacation’ here if you can just to see how it is before committing.
From friends I talk to in New Jersey, our food prices are way higher as well up here from meats to veggies…just try to check it out…in very great detail. Don’t trust the government of saskatchewan’s propaganda about how it’s the most wonderful place in the universe. Afterall i have a song that’s called Travelling thru the state of new jersey…to which my friend laughs becuase it’s so propagandized.
Best of luck to you!
May 15th, 2009 at 3:58 pm
One more thing..
I’m betting that ‘poor homeless’s name is more how the person feels when they see the pricing here….afterall it doesn’t do a whole lot for a person when they work their butts off, think they are making a pretty decent wage even according to thier peers, yet can’t afford a simple thing like a place to live…and so on. It’s a definite blow.
After one works thier ass off it’s not that great of a feeling to feel poor. It’s all about perspective so i find it funny that unapologetic seems to just jump in and have a ‘14 year olds chat room reaction’ to an actual issue.
May 15th, 2009 at 3:58 pm
I apologise for my previous email might have indeed sound selfish and/or snobbish.I was just trying to stress the fact that prices in Saskatoon are higher than in Laguna Beach, CA (seriously!).
Yes! we are really fortunate, and my “high profile” job allows us to consider buying…
…or at least that’s what we thought because my girlfriend still has to find a job, and the salary of an assistant professor does not take you very far in Saskatoon’s market. Renting options (Kijiji.com) sare extremely limited and expensive [>1200 $ for 850 sqf!!]. We will be visiting Saskatoon during the first week of April. We need to find a place to stay and we are literally terrified…
Keep you posted!
May 15th, 2009 at 3:59 pm
Homeless,
I think most of us got your point and there’s no need to apologize for feeling frustration at the state of Saskatoon’s housing market. You’re not alone.
Best wishes for a successful house hunting trip, and yes, please do let us know how it goes.
May 15th, 2009 at 3:59 pm
I don’t think you did sound selfish or snobbish. I’m so happy to hear someone from OUTSIDE the city saying things that SOME of us say that live here. Fortuneate by the sounds of it has been through hard work and ability and we could only be so lucky to have someone like yourself in this city. Good plan to visit. Pretend you live here, drive around, go to the malls, go by the river, talk to people and so on.
and if you end up coming, then welcome!
May 15th, 2009 at 4:00 pm
So I go to look at some open houses today, a nice warm Saturday, and 2 of the four I checked out were cancelled (found out when I got there from signs on the door), a third had presumably been cancelled as no one was there and no sign was up. The fourth was simply overpriced (and was originally taking offers for last week).
I realize there is a spectrum of service you’ll get from a particular agent, from useless and self serving (like those who wasted my time by not showing up to their open houses), to intelligent and highly capable (like Norm!).
Just wondering what are everybody’s experiences with the current crop of agents out there in Saskatoon. It seems I get really poor service from the agents I try to contact via email and phone to ask about properties and schedule showings. Top that off with all the stories I hear of agents spending their time flipping their own properties (which sounds like a conflict of interest kinda thing to me), and I gotta say it seems like there’s a lot of opportunists in agents clothing out there.
Seriously 4, 5, 6 percent of the purchase price? For what?
A friend of mine is an agent, and from some of the things I’ve heard from him, I wouldn’t want to pass some of these people on the street, let alone do a business transaction with them.
May 15th, 2009 at 4:00 pm
Homeless,
You’re fortunate to have a very good starting wage ($71,492 is the base salary for an assistant prof according to the HR website). Were you also told about the housing advance? I took out a 3,000 housing advance loan when I purchased my home here last year, and it helped that extra bit when I really needed it:
From the U of S HR website:
USFA Members
Faculty members are eligible for a housing advance for the purchase of a new home for their personal use (principal residence) in Saskatoon. Repayment of the advance is made by monthly payroll deduction.
The loan is a $12,000, interest free advance that is repayable over a maximum of 3 years.
Believe it or not, you’re in a good position relative to the majority of home seekers right now.
May 15th, 2009 at 4:01 pm
Thank you. We realize we are in a position to buy something…and that we are fortunate (I’m keenly aware, as I grew up well below the poverty line–I’m very grateful for what we have). However, here, in upstate NY, you can get a monstrously large house for 300,000. We would have no interest in spending that much here. We’d be happy with a smaller place–but in Saskatoon, the same price gets what, from the photos I’ve seen online, resemble doublewides.
It’s almost impossible simply to find something with a real dining room, and I don’t think that is a huge thing to ask for…To put down every ounce of our savings and enter into a gambling game when I don’t even have a job yet….just to get an ugly- little thing that rivals the trailers I spent my childhood in—I find the whole idea to be a big let-down for all the work we’ve done.
It’s not entitlement. I just think there is no perspective in the market there for some reason. I personally worry a lot about the underprivileged in Saskatoon, and I haven’t even been there yet. I don’t know how they are surviving.
May 15th, 2009 at 4:02 pm
Stratomato,
I stopped going to “agent’s open houses” some time ago because half of them were canceled without notice. Not very nice spending all of that time driving around to nowhere. Sheesh.
This is no excuse for bad service, but agent’s are spending far too much time deflecting potential buyers that they couldn’t hope to provide service to. Some days, my phone rings 40 to 50 times and I may get an additional 10-15 inquiries by email. I have had to hire a full time assistant to help me deal with it. Without her help, I could not even hope to respond to each one and still get some work done for my clients. I’m absolutely certain that some people have been surprised to find an a**hole answering my phone.
That said, an agent has to find ways of dealing with it because it’s certainly not a good thing giving callers the bum’s rush, even if you feel like jumping off the edge of the earth. 
But, enough about my problems. Thanks for listening.
What about giving your friend a go? He’d probably be glad to take these things off of your hands.
On the agent flip thing-my broker once suggested to me that “you’re either in the business to serve clients, or you’re in it to serve yourself. You can’t do a good job at both.” I agree. With the severe shortage of property over the last year, I’m not sure how you’d buy something without feeling like there’s a client you should be giving the opportunity to.
May 15th, 2009 at 4:03 pm
Homeless’s sweetheart,
I’m pretty sure that you won’t be living in a “doublewide” but there’s little doubt that you’ll be disappointed in what you can buy for $300,000. The average east-end house is pushing the $400K mark right now.
I never solicit business here but your situation has me thinking. Is there any chance that you can make $350K work with your budget? If you can, I may have something next week that could work for you. I should have a whack of photos by Tuesday that I could email you. If you’re interested you can call me after Monday at 1-888-978-6676 or email norm(at)normfisher(dot)com. If you have selected an agent, that person is welcome to call on your behalf.
Regardless, I wish you two the best. Saskatoon really is a lovely city. You’re just kind of catching us at a bad time.