Alex reveals his identity after a bubble chat with MacLean’s
Some have called him extreme, angry and bitter.
Some have called him a good-hearted soul with a social conscience.
MacLean’s, Canada’s national news magazine called him for an interview!
He is Alexander Trauzzi, also known in this fine online community as “Alex.” He joined us early on and he’s been a regular commenter on the Saskatoon Real Estate Resource Centre Blog ever since, openly sharing his concerns and frustrations over the changes which have been occurring in this city over the past year. Recently, he had an opportunity to speak with Jason Kirby, a business writer for MacLean’s and he is formally introduced to us in the opening paragraph of the current issue’s cover story titled, “Is it a bubble? Is it about to burst?”
This was not the Saskatoon Alex Trauzzi remembered.
A few years ago, Trauzzi, 24, had been drawn to the Prairie town for work and grew to love it. He met his fiancée there. And he vowed that after finishing college in his hometown of Winnipeg, the couple would return and buy their first home there. “We saw it as a great place for fresh starts,” he says.
But when the couple moved back to Saskatoon earlier this year, Trauzzi scarcely recognized the place. The housing market was ablaze with bidding wars, double-digit monthly price gains and frenzied speculation. Modest bungalows that had sold for $187,000 in the fall of 2006 were by spring changing hands again for $280,000, without so much as a fresh coat of paint. It was insane. Trauzzi, a service technician, felt there was no way he could afford those kinds of prices for a starter home. So after just nine months, he fled back to Winnipeg where he bought a home earlier this month for slightly more than $120,000. Not a moment too soon. Even the Peg is quickly becoming unrecognizable thanks to real estate fervour. “I could easily turn around and sell my house for five or 10 grand more than I paid for it,” he says, with a note of astonishment in his voice. “I don’t know if there’s a bubble that’s going to burst or not, but if there is something that’s going to happen, it’s going to happen right across the country.”
Trauzzi isn’t alone in feeling anxious about the housing market. Across the country, the B-word is on the lips of Canadians.
You can find the entire text of the online version of this interesting story here.
Whatever you might choose to call Alex, you certainly can’t call him a liar, or even a bluffer. He told us several months ago that he’d be out of here if the market didn’t smarten up. Now, he’s gone and it really is a shame that this educated young man and his fiancée felt that they had little chance of making a start here.
Is Alex’s moving a sign of things to come? Have changes in the Saskatoon real estate market frustrated our young citizens to the point that they feel Saskatoon no longer offers them a future? Is it a bubble? Is it about to burst?
Let’s talk. I’ll start.
First, let me say that I think this is a timely, well written story. It’s a story that we should all be interested in talking about. The answers to the questions posed will impact us all regardless of whether or not a bubble exists. Having said all of that, I’ll point out my complaint about the story, only because complaints seem to be better discussion starters than compliments. J
MacLean’s directs us to the Demographia Housing Affordability survey to make the case that “house prices, even in some of Canada’s hottest markets, almost look like a bargain.” The report’s cover page tells us that the data used in the study is from Q3/2006. I wrote about the release of the study way back in January. Since then, U.S. housing prices have tumbled in some areas, the average selling price of a home in Canada is up at least 10%, and prices have increased 40-60% in some prairie cities. How is this study even relevant some 15 months later?
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
69 comments so far. We'd love to hear your thoughts.
May 25th, 2009 at 11:10 AM
I’ll go with a little angry and bitter. That being said, I do understand a number of points Alex brings up. I’ve always said it’s not his perspective I disagree with (some exceptions), only his delivery of that perspective.
Congrats on your Maclean’s interview Alex. It must have felt good to get your views out there to a national audience. Congrats on your home purchase as well. I was in Winnipeg a month and a half ago and I personally found it to be a charming city. I wish you all the best there.
May 25th, 2009 at 11:11 AM
I see the Canadian RE Alliance doesn’t have a voice in Winnipeg. Maybe Alex should start a Blog like this, one in Winnipeg. It would be interesting to read how other markets are doing compared to us and those bank reports and statistics. You know, if there would a few more sites like Norm’s, in other cities, we would all be in a little better position to figure the market out. Norm are there no Canadian RE Alliance members in Regina and Winnipeg?
May 25th, 2009 at 11:12 AM
Hi Brian,
Thanks for that feedback.
When I initially approached the first couple of agents to form a Canadian real estate blog roll I had one thing in mind. I wanted to compile a list of resources which would actually be helpful for readers who might have an interest in other areas. The intended criteria is;
1) Regular posts from the blog host.
2) Useful information as opposed to “promotional” content simply intended to create leads.
3) An attitude of transparency exhibited by the host.
4) Blog formats which would allow readers to comment and share their ideas.
5) Residential focus
6) Canadian.
Doing a quick review of the existing roll I can see that I already need to do a little tidying up. Montreal hasn’t posted since June so that doesn’t really work for me.
Such sites have proven difficult to find. There is no shortage of “electronic billboards” out there, but we’re looking to create more than a link farm. Lots of agents have started a blog with good intentions and abandoned it because of the work involved. I’m sure that we’ll see more of them develop over the next year, but I’d rather be patient in developing the blog roll, than to fill it with junk just so that all cities are represented.
Having said that, I am eager to see the list grow and I am very open to suggestions if anyone comes across a site that meets the criteria outlined above. Mean time, I will continue to keep my eyes open for good candidates as I travel around the RE.net.
Thanks again Brian.
May 25th, 2009 at 11:14 AM
Norm, thank you so much for the opportunity! It must be known that the price I paid for my home is still quite steep for it’s size and Winnipeg is seeing steady increases. I can’t say that it will go the same way as Saskatoon, but there is a lot of talk about trying!
Angry and bitter really isn’t it Northstar. Just the urgency of realizing the impact not paying attention has.
Many Winnipeg citizens are employing the same philosophies as was used in Saskatoon. These views belong to a very predictable and commonplace right wing approach to things. Sorry about the clichéd label, but many of these people also agree that Saskatoon is hurting itself.
When you tell them “everything you suggest is exactly what put Saskatoon in a bind”, their brains short circuit and the bitter and angry one most certainly is not me at that point.
Honestly – I think I’ve just pushed it harder than most people are willing to accept and suggested things only those who profit would disagree with.
The economic filibuster investors and flippers have us snared in has got to end.
May 25th, 2009 at 11:14 AM
I’m surprised at the favorable tone, Norm. Alex mistreated you and your readers, badgering them in comments without supporting evidence or well-reasoned debates of any kind.
His near-gibberish sentences make little sense beyond their obvious intention to offend. “economic filibuster investors and flippers” is such a great example of this I laughed aloud when I read it. I do wonder how a filibuster relates to either an investor or the economy, but here has thrown caution to the wind and ignored the meaning of the word – or perhaps is just ignorant to the word’s meaning – to increase the density of his composition.
If you wonder why Alex’s quotes in the magazine are so brief and normal compared to his online rantings it is simply because his brain works far more slowly in real-time and he talks more like a regular lunatic than one that has a dictionary-like vocabulary of long but misused words. I say this from experience, so Alex you can be sure that I have met you.
May 25th, 2009 at 11:15 AM
Wow, quite personal! Something tells me maybe you’ve been burnt by Alex?
May 25th, 2009 at 11:19 AM
Hi Ben,
Thank you for your comment.
Well, well, well.
This is a very interesting turn of events, isn’t it?
You may recall that I once expressed an interest in knowing Alex’s identity. If memory serves me correctly, it may have been you who sleuthed that information out for me. At the time, you said that your first impulse was to throw it out on the blog, but you realized that you’d only be doing it out of spite. Delighted as I was to know his identity, I came to the same conclusion and chose not to address it publicly.
Of course, I was so upset with him at the time that I could not resist the temptation to let Alex know he’d been found, so I located an email address and I dropped him a note. Since that time, we have corresponded occasionally by email and as you suggest, I have found him to be “a bit charming” and certainly more “well-adjusted” than I would have thought at the time, based solely on his comments. As I said back then, we are much more likely to speak to each other with a little more respect when we actually know who we’re talking to.
My feelings about Alex’s “online rantings” are well documented on the pages of this blog. I don’t think that anyone has expressed more frustration about his ideas than I have, and my post should not be read as an endorsement of his ideas. I’m sure that Alex and I still disagree on many things. I still think he’d be more persuasive if he wasn’t so confrontational, and yes, he can be downright offensive. Most readers seem quite capable of handling him. Others choose to ignore him.
I will say that I do respect the fact that he actually took some steps to change things for himself. People have been begging him to do something, and he did.
Whatever faults he may have, I do find Alex’s story interesting as it relates to the Saskatoon real estate market. He came to Saskatoon to begin his future. The direction of our market changed everything for him.
It has been a long wait so I am pleased that Alex has given me permission to associate him with the MacLean’s story. I am still interested to see if it impacts his approach though I suspect that he may feel committed.
May 25th, 2009 at 11:19 AM
BenW,
What wonderful and slimy things you say, yet all a personal attack and an attempt to cause long term damage to my life.
I’m sorry, my identity is clear, what is yours? I won’t lose sleep over your statements.
Badgering the readers? If it wasn’t ever obvious, the amount of goading and condescending tone that goes on in any internet forum should be enough to upset anyone. That includes coming onto a real estate blog in the midst of an investor fueled frenzy. I think I took a nice jump into the fire there and it was entirely my choice.
Throughout any disagreement between Norm and I, we remained civil and I never once lost an ounce of respect for the guy. I’ve taken onboard some of his views and have had some great advice given to me.
Tell me…If you know me personally, why haven’t you managed to escalate your relationship with me beyond a petty difference?
You debate everything surrounding me with only light reference to what I’ve said. Tell me, is your presence here only to drag me through the mud? Or do you have a less spiteful and decent intention? Lunatic? I speak just fine in person and the combinations of words I put together are not meant to challenge you or your imagination in any way into saying what can only be seen as the most unprofessional, poisonous and reflexive rant I have ever seen in my days on the internet. Would you have your full name associated with what you just said?
I would love to know who you are but I will wake up tomorrow still, and work. Unaffected by what can clearly be seen as your attempt to exact desperate revenge (correct me if I am wrong here) on me.
You disrespect yourself, Jason Kirby, Norm, and myself by coming on and saying what you said – and all based on what?
May 25th, 2009 at 11:22 AM
Gentlemen, (BenW and Alex)
I have taken the liberty of editing your comments because you’re both moving this discussion in directions which could be unnecessarily hurtful to third parties.
Feel free to call me at 306-241-6676 or email me at norm(at)normfisher.com for an explanation.
Alex,
I think you and I may have gone beyond “civil” once or twice.
May 25th, 2009 at 11:22 AM
Norm,
I say a lot of things that raise peoples’ hackles and “make them laugh out loud”. I wonder if they realize there are also some people who smile because they’re glad someone publicly agrees with them!
I have no problem with you modifying both our posts as it certainly helps prevent anyone from regretting what they say.
Let’s be honest though…I come up with some pretty interesting combinations of words as BenW correctly pointed out.
I don’t do it to pad up my postings, I could just as easily remove them and expand them out. But the messages get very complicated sometimes and it tempts deliberate misinterpretation.
BenW,
Specifically when talking about “economic filibuster” I do apologize for being so broad and confusing. What it means to say is that the indecision forced upon the people in charge of coming up with solutions by the businesses and investors is crippling our ability to cope with the situation.
As said on Wikipedia at the following URL, http://en.wikipedia.org/wiki/Filibuster :
“A filibuster, or “talking out a bill”, is a form of obstruction in a legislature or other decision making body.”
I think BenW you can agree that it isn’t such a bad phrase to coin and the definition sticks. Just like “equity locusts” which has an even more biblical tone! So why are you attacking me for being a lunatic and having thrown caution to the wind yourself?
How do you feel it doesn’t relate? Do you think markets exist solely for profit? Once again, you forget the people and I’m back to my old self again!
This leads me back to keeping this ON TOPIC for Norm’s sake which is, is the study used really relevant? The outdated information Jason used did come as a shock to me and it took Norm’s knowledge to notice it. I would certainly hope my word didn’t go towards making it look like everything is tickety-boo in Canada.
Just ask your hairdresser, waitress or other middle class wage worker.
May 25th, 2009 at 11:24 AM
Alex,
Yes, you do come up with some interesting word combos and you certainly like the metaphors. I actually thought the “filibuster” metaphor wasn’t too bad for the message you’re wanting to put forward. I think I heard you saying that the rich were shutting everyone else out?
Equity locusts? I don’t know, but I have heard that the meek shall inherit the earth.
You know, you did come off a bit bullish in that article. The part about “I could sell it for 5-10K more.” You realize that a Winnipeg real estate boom could be your fault.
May 25th, 2009 at 11:25 AM
I quite liked the term and it works really well, you interpreted it correctly. We find that we won’t be able to mitigate so long as we have the investors screaming bloody murder every time their profits come under the gun.
I know the Edmonton real estate blog mentioned here a while ago had the term “equity locusts” in it. I can’t possibly imagine I’m such a bad person to suggest people are suffering considering that blog is all about the very same thing. These sound byte-perfect phrases really do a great job of capturing the issues. Again, I think BenW was basically trying to strike down my intelligence and credibility at once…
The message I was trying to convey talking to Jason was that the prices are going up quickly. Not that I would be able to turn a profit. If the prices rise as much as they have in Saskatoon and people don’t even see a single raise, what exactly are we left to observe?
You can’t possibly fathom that the increase in prices benefit people unless reality turns upside down and banks offer negative interest rates?!
Anyway, talking to Jason I could probably second guess everything I said to death:
“Let it be known that I underbid on the home! That’s right, Winnipeggers always underbid, so don’t come flipping here, you’ll always sell for less than you paid for!”
Oops, now everyone thinks they can get homes for even CHEAPER!
See, it never ends
May 25th, 2009 at 11:26 AM
Way to go Alex.The only person on this blog who sees things with his eyes open.You know real thinkers and spades are a gift.Hope to see more real people like Alex who live within their means and not living like starry eyed equity queens.Alex you and your types will prosper in times ahead with rational decisions.Happy New Years Alex!
D.T.
Ps-D.T. stands for damn tragedy.
May 25th, 2009 at 11:32 AM
Alex,
That kind of “second-guessing” is typical following a media interview. All you can do is answer the questions honestly and hope for the best. I think the story came across well and it conveys exactly how you were impacted by rising prices in Saskatoon.
May 25th, 2009 at 11:33 AM
The people who are really making the money now and will be in the future are the banks! So what if your house is worth more – the buyer has to pay the bank for a longer time with more interest to buy it!
May 25th, 2009 at 11:35 AM
Maybe Alex didn’t move because of housing prices. I found this post of his elsewhere:
http://www.phoenixrealestateguy.com/is-something-shaking-at-point2-agent/600
Thanks Saskatoon. I’d appreciate it if we could direct such references back to the blog which they originally appeared on. Anyone wishing to read Alex’s opinions about his former employer may do so at the link above.
May 25th, 2009 at 11:44 AM
When I was 24, I was still about 6 years away from even pondering a real-estate purchase.
First condo at 30, 2nd condo at 36, and finally a house at 40 (now). Yes a lot of money was made on both condos due to price inflation in Calgary.
So….come on Alex, you’re 24. I had more compassion for your situation before I knew your age.
Try being a young adult in a recession (early 90s) sometime. You cant buy a house?…at 24 I could barely find a job. Nobody in their 20s could even think about real estate in those days. At least nobody that I knew.
May 25th, 2009 at 1:10 PM
Saskatoon Home Shopper,
I was very committed to Point2 and had stayed there THROUGH the Saskatoon house price boom. The wrist slap I got for posting on a blog and their low standards of pay as noted detracted from my devotion:
As quoted:
“Of course, my presence was commensurate with Point2’s willingness to ensure I could afford to live and prosper in Saskatoon.”
Is it just me or does it seem like eith Point2 or a group of people nearly related are on a mis-information campaign against me?
I mean honestly Saskatoon Home Shopper (if that’s really you’re name), it’s right there in the fourth paragraph?!
Just another half baked jab from the peanut gallery to prove what? My story lines up?
May 25th, 2009 at 1:11 PM
You’re really take’n a beating Alex
Although I haven’t done my own diligent research on your background and previous blog postings, I’ll echo Northstar’s comments when I say, at least you took action. You were clearly concerned for your future in saskatoon and did what was best for you. You took steps to secure yourself while making an investment that you felt most comfortable with. Very very important and I commend it. In saying that, I’m not condoning some of your comments that I’ve read but definitely recognized your frustration in an insecure market and your subsequent future in it.
It’s important that people do this with every investment of this size. Don’t fall victim to the feeling that you’ll be losing out later if you don’t buy now. Opportunities will always be there, if they’re not, the market will inevitably correct to a point where the opportunity returns… therein lies the beauty of a free market. In sad contrast however, the fact that so many are free to manipulate it given today’s public forums and media outlets, are really inflaming both the upswings and the downswings.. which worries me a little.
If there’s one thing that Northstar and I can agree on (perhaps presumptuous) is that no investment is a good investment without thorough analysis of what you can afford now, not what you won’t be able to afford later… no matter what anyone tells you
J.
May 25th, 2009 at 1:20 PM
Johny,
Yep, sounds good to me.
Alex,
I obviously don’t know this situation being brought up against you. It does seem a little strange that it’s being presented now that you have a blog post about your interview. I think this is uncalled for with accusations of being a liar amongst other things. Although we rarely agree, I for one can’t call you a liar for sharing opinions.
A question for you? In the blog post brought up by “Saskatoon Home Shopper” you stated something about you not liking raises based on performance. (Paraphrasing). Is that because you felt thatthe structure was set up only for the inside people?
Although I’ve given raises in the past for things other than performance related I don’t like doing it. Almost all of the raises I give are based on performance of the employee and of the company as a whole. If an employee takes on more resposability and steps up his/her game then I will reward with a raise. If the company has a great year and operating income raises substantially, I reward my employees with more money. Just thought I’d ask the question.
May 25th, 2009 at 1:21 PM
Alex
“..and their low standards of pay as noted detracted from my devotion..”
If you were treated with respect and earned enough to afford a nice home in Saskatoon, would you still move away?
May 25th, 2009 at 1:21 PM
Johny,
I can’t see myself as taking a beating as just fending off a lot of low brow and inconsistent resentment. Nothing said so far has proven anything except that I’m consistent??
I’ve made brief mention in the past that half the things I talk about are at the worst trying to scare up some alternatives than the usual free market pacifism we see. This whole go along to get along attitude drives me nuts, we’re all in this together regardless of how much we make or what we have.
It might sound like backpedaling, but every time you and others disagree with me, I took it to heart and it helped. I just never liked being called a communist (not saying it was specifically you) or any of the other rude titles that say nothing but “I think you’re a danger”.
If I’m so dangerous and a lunatic, Jason wouldn’t have used my statements
I’m really sorry that I upset you and investors over the past bit. Do I think that the investors are free from all blame? No. I see on many other forums where people are echoing the same thing I say except with details. I challenge anyone reading this to talk to people in public about this and hear their take. I don’t mean peers, I mean the people you have work for you, or the people you buy from. I did it, and the revelation was that the lower middle class is jaded beyond belief.
There is a lot of money being made here by anyone taking it for what can only be seen as no effort. The worse part is, if they are in a position to pay others, they don’t – they keep it for themselves.
Which I think takes me to Northstar,
The initial salary is really the most damning thing you can do to your employees. Every time you give a raise you think you’re a king but it’s a pittance and only playing catch up to the figure they should have been initially offered.
I can’t suggest anything else because no business will reveal to me their finances. But I think with all the price increases going on, people sure aren’t seeing the other end of it. Inflation is just the latest cheap grab to sap more from passive consumers. Free market ideals only make up half the story.
So, the problem now is the failure to recognize the pressures they face in their raises.
In a market where rent can be $1000+ and mortgages $120k+ you don’t pay your employees even $40k and pat yourself on the back anymore.
That’s about $1100 (after taxes and deductions) a cheque twice a month. The banks at that point will see it as a stretch for that person to afford anything. So when we factor in food, perhaps one electrical bill, (and more if they’re owning), phone, television and/or internet, gas purchases and a car this person is now a month away from rock bottom if not worse ( http://www.growinggap.ca ).
Over 75% of their income is going towards keeping the walls up with no progress made in savings or increased quality of life. Wages today have people second guessing the merits of buying into their employers’ group health insurance policies!! Remember, this is renting OR owning, no matter how you cut it, most people are stretched really thin (another discussion about the polarization of the workforce is available here if desired).
As I stated in my blog post and quoted here, my presence was commensurate with the business’s willingness to pay me a wage that didn’t add stress to my life. That’s adding some meaning after the fact, but that’s exactly what it adds up to.
And so “Just Wondering”,
If I was paid enough by Point2 while in Saskatoon to afford a house without it depleting my finances there certainly was a much stronger chance of me staying.
Moving back to Winnipeg (as it is where I grew up) has been great since day #1 and the job I have now is a lot better than Point2. I think they hurt themselves in very strange ways with me and it became cumulative – especially getting a spank for posting on Norm’s blog here. As well as the accusation of insulting Norm personally and putting down his profession which during the talk I asked for proof of (to which there is none!).
The now-president was basically trying to lie and scare me, and it was crazy the amount of omission that went on thereafter. Any employer who would do that (and has continued to do such by the statements of other employees still there in the comment stream of the other blog) is going to get me questioning their integrity.
I think if I could have afforded a home sooner, odds are none of this would have been a problem
(Northstar)
There’s nothing they could do to make me come back now though. Everything in Saskatoon has dropped several notches in quality and I find the city to have very low standards now (a separate discussion if desired). It would be like asking me to move to Calgary.
May 25th, 2009 at 1:24 PM
Northstar,
I was trying to make sure I answered every point, but I totally missed your question: ” Is that because you felt that the structure was set up only for the inside people?”
Sorry about that.
The company as I stated depends on their heroes. Were they paid enough? The impression I got was that they weren’t, but they were lucky enough to have debt based on yesterday’s prices.
The structure I think afforded them enough security to maintain a bed of poorly paid employees with a high turnover while still not paying as much for the next more stable tier up.
That attitude sickens me and I think most of what I’m saying now I already said over on that other blog. It shows zero commitment to growing the company and zero intention of developing talent on the inside. Employees are forced to suffer through to yet even more false hopes…
May 25th, 2009 at 1:26 PM
Congratulations Alex. You have worked hard and made a diligent decision regarding your future.
For us, we are currently also looking at other options. It’s hard to be angry (for me) with any one group for the changes in Saskatoon. We really wanted to come back to a memmory of a great city that offered affordability, ammenities and less traffic than any other comparable city. That Saskatoon doesnt exist any more. And sure, people that moved from Calgary and Vancouver may say …compared to Calgary or Vancouver? Its great in all the above regards. That’s not the point to me. Rows of condos and new townhomes that quite frankly are architectually boring and look awkward the way they have been thrown together like a childs lego project, offer the costco approach to housing. Houses that are resale often require tens of thousands in upgrades, and new homes, are being thrown up at an unsafe speed and leaves one questioning the integrity of the builders, with no trust in the home warranty program. Those that had the equity, did very well indeed, and may not have the same complaints after experiencing life in Calgary, Edmonton, or Vancouver. The speed at which Saskatoon has adapted to these changes is almost like watching a dieting yoyo. It is much easier to pack on the weight than take it off, in the same way it is easy to claim “Move to Saskatoon”, and squeeze into an unadaptable pair of jeans. There simply isnt enough housing to go around right now. This coming year, is going to be very interesting as prices of commodities will increase dramatically, including food and gas. I don’t believe that incomes have had so much elasticity to accomodate the boom. And people may say the same about Calgary. Well, I never was interested in moving there either.
Good luck to all of you in the New Year, congrats Alex, and we have also made some decisions that will dramatically improve our state, as well. Sorry to say, it does not include Saskatoon…
May 25th, 2009 at 1:26 PM
Alex,
Not sure if you’ve heard but Saul Klein from Internet Crusade has recently been appointed CEO at Point2, following the recent departures of several key people.
Here’s what Saul has to say about his priorities for 2008. This one is the very first item on his list.
“Employees – The biggest investment and greatest asset of the company …are the employees. Happy, satisfied employees insure the best performance.”
Saul’s Comments on Reliberation
In spite of their success, the company has been under some real pressures through 2007 and I would imagine that it would have been difficult to maintain high morale. This sounds like an acknowledgement that some work needs to be done and a commitment to do it.
I’d love to hear from any current P2 employees about how you’re feeling about the future.
I wish you, and Point2 the best for a happy and successful future.
May 25th, 2009 at 1:27 PM
Hey what happened to the calgary real estate blog???????????????
May 25th, 2009 at 1:27 PM
Saul taking over will be interesting as P2′s architecture is obviously different to theirs.
The focus on employees may only be skin deep, time will tell and I’d love to hear from some P2 employees about this as well. But the management there clearly doesn’t like it when they speak freely.
May 25th, 2009 at 1:28 PM
D.T.
I removed that one from the blog roll as the host hasn’t posted since mid-November.
That blog is at http://www.bobtruman.com/blogs/bob_truman/default.aspx
This agent does a good job of posted stats regularly on his website at http://www.bobtruman.com
Here’s another Calgary blog that looks decent. http://findcalgary.blogspot.com/
May 25th, 2009 at 1:28 PM
Cindy,
I am one of those that did move here from the West and I love this city and what it offers. I do understand your frustrations as even I have noticed a difference from the first time I was here in January / February. I can only imagine the view points of people who have lived here for years. This is a difficult city to cope with the infrastructure issues as it only has a population under a 1/4 million. While a city like Vancouver or Calgary can take on 10 or 20 thousand new people like nothing happened, you really notice a few thousand here. In my opinion it’s not good or bad… It just is. Do I think what has happened and will happen is excessive… Yes. But I think a good chunk of the excessivness comes from this city being so undervalued to begin with.
It’s too bad Saskatoon isn’t in your plans but I’m sure you’ll do great wherever you’re going. Good luck to you.
Alex,
I think it might be a little bit difficult to compare businesses, as Point2 is obviously made up of educated, more experienced work force. That being said, I think a successful business has to be set up in the aspect of what you are saying. ei. your core group and those outside the core. A hockey team is set up the same way. What happened to playing your way on to the team, then once you’re on the team, working hard to get on the top line so you can make the big paycheck.
If I hire someone, and in the future they outperform people on my core staff, then they get promoted and someone gets demoted. If I don’t create competition for better wages and more responsibility then I’ll wind up with a business that flatlines. Again I might be comparing apples to oranges considering the businesses but if I hire 5 people, only 1 of those people will excel. 4 of them are there to do the bare minimum to collect a pay check. That’s the nature of people’s personalities. I want that 1 in 5 working for me because it’s only that 1 person that will grow my business. That 1 person I’ll pay well and give bonuses and benefits because they’re valuble to the business. If you owned a business, who would you give the opportunites and the better wages to. As well, I can only pay my entire staff so much as what will keep the business a float as well as put a respectable amount in my pocket. Else what is the point in owning a business?
Do I think an owner should make tons of money while his/her employees make crap. Of course not. But I definately am not going to give the world to new employees. It’s all about performance. Not just for me, but for making the job easier for the rest of the staff.
As for Saskatoon Real Estate (I think this blog has something to do with that),
currently 375 active on MLS. I’m interested in December’s stats as I’m wondering if sales exceeded new listings? I could be wrong but looking at my chart I don’t see any month over the past 3 years where sales exceeded listings.
May 25th, 2009 at 1:29 PM
Northstar,
Thanks for the Christmas card! Appreciate you thinking of me.
Looking at the weekly stats for December, I see 157 listings and 207 sales.
This is just in the single family homes and condo categories.
May 25th, 2009 at 1:32 PM
Norm, quick response to your comment about Saul. Firstly I can say for sure that the employees at P2 are very excited about Saul coming on board. However, the reason for the excitement is not poor treatment that they hope he will fix, it’s primarily just the fact that a person of his reputation and stature has shown enough confidence in all of us to come on board. The best analogy I could think of is that having Saul come on board is like a complete stranger telling you “hey you are awesome” as opposed to one of your parents telling you the same thing. Always means more coming from an outsider. As you said 2007 had a number of challenges, but if business and life have one thing in common, it would have to be that neither are always a smooth ride. In both instances the bumps that seem like mountains in the present usually seem like mole hills once they’re in the past in my experience. That being said obviously no employee is going to complain about a new CEO saying his primary focus is making sure the employees are happy!
I won’t address anything directly that Alex has to say about P2, all I will say is that he shares a lot of opinions about “the way it is” here for somebody who was only around for about 5 months (pretty sure it was 5 or 6), not very long considering the company is 11 years old. Pretty hard to see the full story on much in that amount of time IMHO. Alex I don’t want you to take that at an insult or me trying to somehow knock you down. I do however believe that when people read the things you say about P2 that they should know your stay here was quite short.
May 25th, 2009 at 1:32 PM
Your welcome!!
Wow!! 20% more sales than listings. Without sounding too much like a pumper
, that’s the first month sales beat listings,(Including any month this spring).
http://www.sreb.com/Srarstats.php3#Month
There’s the reference.
Prepare for a busy spring Norm.
May 25th, 2009 at 1:33 PM
p2 employee,
Thanks for speaking up. I appreciate hearing your perspective. Honestly, I tried hard to avoid a point 2 discussion but that was not to be.
You make some excellent points.
I have had the great pleasure of meeting many people who work at Point2, some very recently. I’ve always been impressed with the calibre of talent working there and I’m confident that you guys will continue to move the company forward as you have in recent years. Point2 is an amazing company. The fact that you have more than 165,000 agents using your product in just a few years blows me away. I am proud that such a company exists in Saskatoon.
Best wishes for continued success.
May 25th, 2009 at 1:34 PM
In this thread Alex said:
“the accusation of insulting Norm personally and putting down his profession which during the talk I asked for proof of (to which there is none!).”
But on July 9, Alex said Norm has “limited cognitive power,” and asked him, “Are you complaining about the huge pay raise you and others like you are making because you make a flat percentage?” in this comment: http://www.teamfisher.com/blogs/norm_fisher/archive/2007/06/24/rbc-predicts-solid-economic-growth-for-saskatchewan-in-2007-and-2008.aspx#133771
I think that counts as both insulting Norm personally and putting down his profession. It was also easy to find… think there’s more?
May 25th, 2009 at 1:35 PM
Alex got Trumped, if that is your real name (and these anonymous attacks just keep coming!):
That comment was presented rhetorically. I did not say “Norm you [whatever].”
Also, you have taken it out of context to misrepresent the statement which originally was (paragraph in it’s entirety):
“So in order to not like capitalism, you have to like communism, eh? Shows your limited cognitive power nice and clearly.”
Which truth be told is a valid statement. Moreover, I’m certain that was not directed at Norm and simply taken in sequence because it suits your point best.
So therefore Norm obviously doesn’t think this, and thus he does not have limited cognitive power.
But hey, whatever man. I can’t wait to see what you pull out next! You don’t seem to be drumming up much sympathy for yourself continuing on like this.
Perhaps if you took more than the seagull approach to chastising me anonymously you’d have better luck.
May 25th, 2009 at 1:36 PM
p2 employee,
Certainly. I agree that I wasn’t there long but I was there for long enough to see the weaknesses. I started in early January and had my last day in late September which is about 8 or 9 months.
I had a chance to get entrenched in a routine and I certainly wouldn’t have made the decisions I made if I didn’t have “the full picture”.
When it became evident to me that Point2 doesn’t really care about their employees’ lives outside of the company, that’s when I sounded the retreat.
I have always been able to give a pretty good assessment of things and I’m glad you agree with me. All the employees at P2: maintenance coders, programmers, support staff and QA are amazing.
Why these people haven’t had their salaries increased to match the skills they bring and what it truly costs to live nowadays is beyond me. But I think it is a long overdue improvement for this industry and Point2 could benefit from leading (as they always claim to) even in this regard.
May 25th, 2009 at 2:42 PM
No Alex, the context is very clear. First Norm said of you, “Sometimes he comes across as a ‘communist’,” and then, “the guy has some issues and he’s up to his neck in BS.”
To which you responded:
“Neck deep in BS? Nobody has or can justify the greed going on. The rich must be put on hold for this to be solved, because they will only move in on the “solutions”.
So in order to not like capitalism, you have to like communism, eh? Shows your limited cognitive power nice and clearly.”
It’s obvious that you and Norm have since made amends, but that doesn’t change the fact that you did insult him.
May 25th, 2009 at 2:50 PM
Just to clarify Alex, choosing not to address does not mean i agree with anything you have to say, it means exactly what it says, that i’m not going to talk about it.
May 25th, 2009 at 2:50 PM
Hey p2 employee. How many people left your company? Wasn’t it at least two of your C level and all of your V level executives? Was it 8 or 9 people? How many years did they all work there?
May 25th, 2009 at 2:53 PM
Greetings from sunny Phoenix!
Interesting discussion here, thanks to all for sharing their thoughts. And thanks for all the visits to my blog!
I need to re-read and absorb before I can really offer any comment. Just wanted to wish Norm and Alex a Happy New Year (and everyone else too…)
May 25th, 2009 at 2:55 PM
p2 employee,
From what appears to be the smear campaign going on against me in this comment stream, I can only guess you’re saying this to discredit what I say. Regardless, your complacency is evident.
It doesn’t matter, the company made it’s intention very clear and it’s policies have obviously been less than adequate. The changes there this year are a reflection of that. If you disagree with me, it’s an uphill battle to prove the company that pays so little and has turnover issues is alright. It’s also difficult when your new CEO says there’s a focus on employees – what would prompt that?
Alex got Trumped:
I think you’re just going to have to admit that digging up things said in the past won’t help your case at all. I didn’t insult Norm directly and I wouldn’t ever have put down his profession. If I learned something at Point2, it’s exactly what people like him do for their clients.
Which if you make use of your amazing sleuthing skills, you will be able to find some comments I made on this blog where I outright defend real estate professionals.
Although somehow I think your guile dwindles once you’re tasked with finding out how wrong you are.
Still anonymous…Are all my detractors cowards or are they just too afraid to be associated with their nonsense?
May 25th, 2009 at 2:55 PM
It doesn’t take a rocket scientist to figure out why sales have beaten listings in December. Many of these homes have been on the market for months at ridiculously inflated prices, sellers are finally starting to come down in price and are accepting underbids.
As for me, I have a reputable/experienced contractor who is willing to build a 1200 sq ft house for me at the cost of $150/sq ft in the spring. Resale homes sure aren’t looking very appealing right now. Lets see… pay $300,000 for a new larger house that has the layout I want and requires no renovations – or pay $280,000 for a 1000 sq ft house that needs $20,000 worth of renos and then move again in 7 years time into a home that better accomodates my needs. Tough decision.
Alex, I commend you for fighting the good fight. You put a lot of time and energy into your battles, and you’re helping tell the story for all of us who are living it. With exception to working for a year in Winnipeg, I’ve lived in Saskatoon my whole life. Saskatoon is changing and I’m not sure it’s for the best. Will it become the next AB? Possibly – and that’s an ugly future in my opinion. I don’t know how far Winnipeg is behind us.
I think that two educated people in their 20′s should be able to afford a starter home in a place like Saskatoon. It’s a shame that some people compare us to BC and AB saying that SK’s cost of living is still low. Why aren’t these people INSTEAD questioning BC and AB’s insanely high cost of living?
May 25th, 2009 at 2:57 PM
Northstar,
I am disappointed in the drop in total active listings through December, though I’m not really surprised that sales outpaced listings. Note though that active listing inventory is still 50% higher than it was at this time last year.
May 25th, 2009 at 2:58 PM
Norm,
I just went on mls.ca and found only 160 houses for sale. There are not many choices out there right now. Many of the other listings are condo’s, which I suspect are held by some speculators. More listings of houses would produce a healthier market. Hopefully those 2000 lots the city developed last year add to the listings. Even though it is taking almost 10 months to have a house built these days I believe we could have a stablized market come springtime increasing with inflation. I guess we will see.
May 25th, 2009 at 2:58 PM
George,
160 houses and 160 condos. Not a very big selection. I hope that you’r right about the market stabilizing.
May 25th, 2009 at 3:00 PM
Norm,
You don’t seem so confident with the market stabilizing here, do you? I have said before the wild card for prices here will be alberta. With the possibility of more albertans moving back and limited supply, prices could go quite a bit up. What are your thoughts?
May 25th, 2009 at 3:01 PM
George,
I had been feeling confidently bearish until around the middle of November when inventory started to drop off again and I’m very uncomfortable with the low levels we’re seeing right now. Demand remains strong and low inventory levels can only put more pressure on prices. I don’t think this market needs another bull run. Prices are already “out of whack with the fundamentals.”
I agree with you 100% on the Alberta thing. If those markets remain quiet, it will take some of the pressure off of our market. I understand it’s not that easy to sell in Edmonton and Calgary right now. I think some people will postpone looking for work here while those markets are in the dumps. That could change if those markets come around
I’m all for seeing Saskatoon grow and prosper but we need more homes, and we need them in a hurry.
May 25th, 2009 at 3:04 PM
Wow a 10 month wait to build a house!I live in alberta.Build res and comm and we are a little slow,not sure why but i know commercial is busy here.I am glad to hear lots going on in Saskatoon.Its about damn time.I think your economy will continue to stay strong.A simple solution is to run an ad in the city papers here.I know a lot of residential framers sitting at home here.The price to build a home here(framers wages are still at 7 to 8/foot-a real shame)but lots of easterners coming here and working for cheap.Driving rates down.Good news for some but during a boom here you think wages would go up.GRRR.If anyone has any building questions I would be more than happy to help out.If thats ok with Norm,It is his blog.
May 25th, 2009 at 3:04 PM
To All,
Here is an interesting article posted in a local newspaper, http://winnipegsun.com/Business/2008/01/02/4748763-sun.html
Although they measure the incomes of much larger companies, the attitudes noted are prevalent just about everywhere. It is no secret that the majority of businesses from any point in time will share practices and standards.
I have always maintained that as the money continues to flow the GDP continues to remain strong, the people have seen very little increase in their wages. None of this can be attributed to libertarian, socialist, capitalist, or any other perspective as each is necessary.
The damning ingredient is greed and the difference of millions of dollars is right here in front of us.
It doesn’t take much to understand that if such a large amount of money is going to such a higher concentration, then it obviously will not reach down to lower classes. It will stay in those black holes of wealth.
When we talk about affordability, let’s not just look at prices that may be governed by supply and demand, look also at how much money people are making today and how much they should be.
May 25th, 2009 at 3:06 PM
Jon,
All comments and contributions are welcome and appreciated. Thanks for your willingness to share. I apprecaite you being here.
May 25th, 2009 at 3:06 PM
I can’t speak for anyone else, but I’m anonymous just so you don’t come sling mud on my blog like you have here.
Even you were anonymous until this very blog post.
May 25th, 2009 at 3:07 PM
Alex,
No “affordabily discussion” is complete without including incomes.
Not sure if CEO’s of “most” large companies earn those kinds of bucks. I’m pretty sure there’s nobody at Point2 earning $33,000 in the morning before 10:15 am.
May 25th, 2009 at 3:08 PM
Heather,
“It doesn’t take a rocket scientist to figure out why sales have beaten listings in December. Many of these homes have been on the market for months at ridiculously inflated prices, sellers are finally starting to come down in price and are accepting underbids.”
I’m not sure I buy that theory. Norm, what’s the avg days on market for a property right now as compared to last year? I’d be suprised if there was more than a 5-10 day difference. I could be wrong.
I think it’s a combination of people not wanting to sell right now when they know they could sell easier in the spring for more money; as well, more investors scooping up some properties before spring hits.
Another reason I don’t quite buy that theory is that sales are up this December as compared to 06′. I’m not disagreeing that homes could be overpriced, however buyers don’t really seem to care as they keep buying in record numbers.
Finally, the fact that sales beat listings in a month for the first time in years (including this spring) shouldn’t be down-played. Technically it’s a huge bullish signal despite there being more listings than last year.
I don’t necessarily think another boom this spring will be the healthiest situation for this market, but I’m just calling it like I’m seeing it. We’ll see what happens.
May 25th, 2009 at 3:08 PM
This is strange,
but I’ll agree with Alex again. I see the point being made here. I don’t think that most CEOs make that kind of money but there definately is a widening gap between the haves and the have-nots. Although I don’t see a need to make $50 million a year while employees struggle, I do think that both sides rich/poor can share the responsibility of what is taking place as a whole society.
May 25th, 2009 at 3:09 PM
I want to address the comments regarding my relationship with Alex, lest anyone think that my silence amounts to agreement.
Alex and I have had some tense moments at times on this blog. I would be lying if I said that some of his comments, like the one mentioned above, didn’t offend me. When I read the text of that thread, it’s obvious to me that veins were popping out of my forehead and blood was shooting from my eyes. I would be very surprised if I had never offended him with a comment I’ve made. Again, if I’m honest I would have to admit that there were times that I really tried.
I mentioned earlier that Alex and I have corresponded some and that I have come to see a more “charming” side of him. I’ve concluded that we have some things in common. There are some things that we both care about deeply, and I do respect the fact that he has strong opinions on some important value issues.
In most instances, we are likely to disagree on how certain problems should be solved. That’s fine, as far as I’m concerned. We also have some major differences in how we feel comfortable communicating our views. It seems to me that Alex thinks that his impact increases proportionately with the volume of his voice, like he believes he needs to slap you real hard to get your attention. I think he sometimes swings well away from what he actually believes in an effort to make a point. I’ve told him this before so I’m sure it comes as no surprise that I feel this way. I, on the other hand, believe that Abraham Lincoln (wow!) had it right when he said, “It is an old and true maxim that a drop of honey catches more flies than a gallon of gall. So with men, if you would win a man to your cause, first convince him that you are his sincere friend. Therein is a drop of honey that catches his heart; which, say what you will, is the great high road to his reason.”
My hope is that someday Alex realizes that the heat of his passion is burning bridges for him. Every bridge that is burnt leaves him more isolated and further away from the goodwill of those who would otherwise take some joy in helping him achieve everything that he wants out of life.
Alex, I hope I don’t leave you feeling betrayed. I wouldn’t say it if I didn’t care.
Alex got Trumped. The key is to happiness here is to quit trying to beat him.
I hope to maintain an environment where even those that we disagree with can have an opportunity to speak. It makes things more interesting.
May 25th, 2009 at 3:09 PM
Northstar,
I had been feeling more “bearish” through the third quarter, and into the fourth. In recent weeks I have become more concerned about where the market will go this spring as inventory levels start to decline. I don’t know where things will go but I do think you’re right about a bit of a ride for the short term. If there are price gains over the next few months, I believe that they will be largely unsustainable for the long term. I think there’s a very good chance that the heat will come off sooner, and faster in 2008. The situation has the potential to change dramatically over the next few months. On the supply side, condos will be a dime a dozen, and new home construction should increase by 40-50%. On the demand side, I seriously doubt that the Alberta factor will play as large a role and affordability for locals has been blown to bits, unless of course, you’re already in. At the end of the day, where are our first time buyers coming from?
May 25th, 2009 at 3:11 PM
I had a talk with a Calgarian relative and he says that it’s the higher two income families that are managing to bring in sufficient cash for the higher prices.
This is having a very negative side effect of allowing those who observe solely by statistics to establish new standards. This means that anything done in the future will be done with this expectation in mind.
An example of this is the expectation in Saskatoon to rent out your home as part of your plan to afford it.
Here in Winnipeg, most people think that’s a very far reaching presumption.
Stretching people to their limits is always going to prove new ways of draining the cash away. But each time it is done, you create a long-jump in affordability for the people beneath your new standard. There is no livable standard in the spaces in between.
The effect you see is already hurting Saskatoon and to this day is slowly eating away at any company’s ability to maintain a presence in Calgary. Typically low pay jobs are now over doubling minimum wage standards anywhere else in the country. This might be trumpeted as a benefit, but also consider that the employers are not raising their salaries in step with this.
If you need an example, think of somebody who perhaps is “lucky” enough to make $33k testing a piece of web software *smirk*. Now imagine that he drives by a sign on oh..say…8th street advertising $20 an hour on a billboard to manage a pizza store.
I’ve used this example before, but it speaks endless volume to the situation. And it only gets worse in Calgary.
The statistic lovers will point at the availability of higher than usual low paying jobs and chastise you for complaining.
“Trump got Alexed”,
You are a poster child coward. I always used my first name and it has always been easy to trace my identity.
Again, you haven’t made your intention clear except to perhaps rewire a few statements to troll this comment stream.
Whatever it is you are trying to do, you do it very poorly and I think you’re at the point now where you’re scared of having your own “blog” associated with what you say.
Couldn’t blame ya!
Norm,
Hopefully this doesn’t sound too chaotic, but some bridges burned I have no intention of crossing again.
I can also tell you that most people who support me the strongest have had a period of despising me equally. For me, the friendly relationship is always preferred, but not the only option.
Burning bridges is indeed something not “new” to me, but I find more often than not it is the overreaction of others that get the flames going. For me it is important to see where someone stands above all else. In many of the cases, sharing views on an online medium is doomed to fail in garnering support – it takes about 5 seconds to be stereotyped.
Those who come on and call you out are dead set to oppose you at all costs.
What I say on here is to motivate those who feel the same as I have said before. There is a glaring lack of feedback from the lower middle class for whatever reasons.
Although as always, you’ve hit the nail right on the head with how you see it.
May 25th, 2009 at 3:12 PM
Housing prices will fluctuate as they always have.It is good to see a city Like Saskatoon finally making some progress.Unfortunately there are some who cannot afford this little boom and it is causing mixed emotions.Thats a fact so live with it and quit complaining.I admire those who are smart enough to make a profit on their investments.To those of us who cannot afford homes in Saskatoon right now thats just too bad for us.There is no need for anger or resentment upon others.Instead we should seek the wonderful insight these people have to offer within the statements typed in this blog and many other blog like it.After all the first step to success is learning how to listen to others.Sometimes we read things that we do not like.Sometimes we read articles that capture our interest.I personally have failed miserably at purchasing a home in the past 2 years due to poor credit.But this does not cause irrational thinking towards others and their opinions.I notice a lot of frustration in the real estates blogs lately.This is not a UFC fighting ring.I do believe this is where people such as yourself look for answers and post comments pertaining to real estate in a gentlemen like order.So loosen up,crack a beer or a coffee and use your creative mind and ditch the anger!You’ll feel better.Oh and get out of chair,call your agent and go house shopping.
May 25th, 2009 at 3:12 PM
Roll-on Roll-on Saskatchewan
Oh yeah the Riders kicked A@#
For those Whinypeggers this Buds for you.
We got that rider pride,you know we just cant hide that rider pride.
Dang that felt good to see Winnipeg lose.HEHE
ahem-Alex!
May 25th, 2009 at 3:14 PM
Jon,
I only wish it were that easy. If it were only a matter of learning from others I would be happy. But sadly these opportunities that were once open to many people are slowly drying up.
This is about more than poor decisions or bad timing. This is a significant change where future generations will be poorer than the last for the first time in MANY years.
May 25th, 2009 at 3:16 PM
Jon,
Our situations have only one thing in common, we both don’t own a house. The big difference however is, I’m assuming you can’t get preapproved for the amount you need to buy the house you want. I’ve been preapproved for a stupid amount of $$$ but I don’t want to buy into this ridiculous market of run-down houses with no renovations for $280,000+! Some people blindly follow those who say “you can never lose money on realty”. It’s a case of buyer beware. Everyone is responsible for their own actions and their own finances. If the market recedes, or interest rates increase, there’s going to be a lot of people hurting. I’m trying to be careful with my money, I realize this is a huge investment, and I never think rushing into things is a good idea.
Northstar,
I’m only judging from what I see. I’m on the different websites everyday looking at resale homes. Before the end of December there were lots of homes that had been listed before the snow fell. (You can still see some houses that are pictured in summertime) With the stats that Norm posts averaging the amount of underbids, this is a logical explanation in my books. With some sellers having double mortgages, not everyone can wait to see if the market picks up again in spring.
May 25th, 2009 at 3:19 PM
Alex,
you bring up some good points and a point of view of someone who has been affected negatively by this boom. And I know you are not alone.
Most people I talk to, talk about house prices, the construction boom, revitilization of downtown and Riversdale, the technology sector in Saskatoon, potash, uranium, agriculture, ethanol, diamond mining, oil and gas and so on in this province. We talk about the economy and how much our resources are better than Alberta. In fact, I believe with our resources, we will have a better economy than Alberta in the not too distant future.
But the number one resource we have, is people. The way we are going, we are following Alberta and possibly making the same mistakes they did. Unfortunately, many people are being left behind. Is Saskatoon going to grow too big too fast?
One example we have not learned:
When Saskatoon City council was first approached with the condo conversions. They did not want to do anything, because it would scare the investors away. Saskatoon would be labeled as “not business friendly.” Almost a year after the fact, what has happened? Less apartments are available for rent at a already low vacancy rate. Good people punted from apartments. Investors and speculators making tons of money by slapping on paint and maybe some cheap flooring. This has driven up house prices so a few could make money at the expense of the majority.
Personally, I have not really been affected negatively or positively by this boom yet, one day I will though. I really believe Saskatoon and Saskatchewan are just starting an economic boom which will last quite a few years. I just hope that the management by City council and the government of Sask. manage it right.
May 25th, 2009 at 3:20 PM
George,
Thank you, it is nice to hear more and more people coming out and talking about this. Especially in terms of those who were never part of the plan to profit.
I agree, Saskatchewan has an amazing appeal which I fell in love with the first day I came. I met the love of my life here no less, the province is truly special.
Although keep in mind that things will change as more attention is focused on the province. Money is a terrible source for growth.
As governments continue to fill up with business oriented thinkers, we will see a growing knack for laissez-faire ideals. This assassination of regulation is no coincidence. Our country, provinces and municipalities continue to be governed by officials who earn their respect by promoting tax paranoia.
Most of the middle class is seen as a burden and the lower class a photo op. Neither is taken seriously but instead forced into situations where they must accept imposed lower standards and expectations. As it is profitable of course – think about what I said about having to rent out space in your home in Saskatoon vs. Winnipeg.
To me, all this runs directly against what our country has always been about. As I grew up, I was taught that there is hope for everyone and that we were protected from a plague of greed.
Odd then, that my hope is now for in the next few years, more and younger leaders to step forward who aren’t just about the money.
As usual, I’d love to see more readers drop a comment anywhere and everywhere they can.
I may have a home now, but I chose to live somewhere that still reflects my beliefs:
As it says on the top of this building as you enter the North End of Winnipeg: People Before Profit
May 25th, 2009 at 3:22 PM
Northstar,
You’re even a little high on your estimated difference in days on the market.
December, 2006 – 28 days
December, 2007 – 30 days
It started to decline in early 07 and then gradually increased over the last four or five months of the year.
My concern? Only 162 single family homes for sale. That’s well below where we would have been last year. The closest I could get was December 11, 2006 when we had 265 houses showing active.
Last year at that time, we had a grand total of 44 condos on the market. This year it’s at 155.
So, far fewer houses and lots more condos. Will be interesting to see how this falls out.
May 25th, 2009 at 3:22 PM
Alex,
We were doing some work today in updating our Neighbourhood profiles One of the components is “Average Household Incomes” for the various areas. I haven’t had a chance to analyze it in great detail but my initial glance at the data struck me as interesting. Some of the largest shifts between 2001 and 2006 occurred in the richest areas of Saskatoon, but the averages moved in a downward direction.
Briarwood dropped from $135,451 to $105,651
Arbor Creek went from $107,040 to $99,489
Erindale went from $94,455 to $91,243
Very little movement in the low-middle to high-middle.
Fairhaven from $47,591 to $48,885
Forest Grove went from $64,144 to $65,826
Lawson Heights from $78,130 to $79,444
Lakeridge from $91,421 to $92,087
Here’s what happened in two of the lowest income areas.
Pleasant Hill went from $26,753 to $25,776
Riversdale from $29,272 to $29,441
No question that the poor are getting poorer, but maybe the rich are too. I have no ideas on why this might be.
May 25th, 2009 at 3:25 PM
Interesting stats Norm,
Do you have anything for income stats in 2007? It would be interesting to see what the change was during the boom (If any).
May 25th, 2009 at 3:28 PM
Norm,
These statistics are no surprise although each one would have to be regarded as outliers. The message on the whole is “people make less money” and so at best we’re stuck guessing what the causes are.
For the richer areas, perhaps the newer suburbs and older owners moving about to newer homes is resulting in new owners that are stretched to their limits. One income of $40k that could afford a home is now replaced with two of $35k. The average between $35k and $35k is not surprisingly: $35k!
Another obvious thing to consider is that no new higher salaries are likely being introduced to more wealthy areas. Instead, most of the purchases are done with cold equity money. If you can buy the home without a mortgage it is certainly affordable. So imagine retired or older empty nests upgrading to something fancy on their still viable yesterday salaries. Employers love to make you feel bad by using these people and their secret weapon (equity) when complaining about low wages.
The middle class suffers across the board, that’s the message I get. The difference is, those at the top of the tier try to act like nothing is amiss.
May 25th, 2009 at 3:30 PM
I find those stats hard to believe. I believe something is wrong. I could maybe see a couple of neighbourhoods experiencing decreases or being flat over a couple years, but not as many over the whole 5 years. Maybe if we experienced a recession for those years. Heck if even average houselhold incomes rose with min. wage there should still be increases over the 5 years. Take Arbour Creek, many teachers, nurses, firefighters, cops, university workers, city employees, people in management etc. live in this area. I know that these employees get on average at least 3% a year. Arbour Creek should see an increase. I just think those numbers are flawed until I learn more. Thanks.
May 25th, 2009 at 3:32 PM
George,
I believe that StatsCan figures do show increases in the average income here, so I am also uncertain as to how these “profiles” show what they do. Prior to 2007, it was becoming more common to see first time buyers starting out in larger, more expensive homes. Perhaps that has something to do with it.