Comments on: A closer look at the Saskatoon real estate statistics for May 2007

By: Norm Fisher

Norm Fisher — Tue, 07 Apr 2009 19:31:55 +0000

Glen, agreed! It’s hard to believe what has happened. I was really struck the other day as I looked at an ad on SaskHouses for a typical starter home in a nice neighbourhood. The copy read, “Monthly payments as low as $1,493.00 with 5% down.” Throw in a couple hundred bucks for property taxes and a few hundred for utilities and one has to wonder if it’s a serious option for most first time buyers, especially if they’ve been living in Saskatchewan.

Let’s hope that incomes start to catch up some.

Todd, another excellent point. Many buyers who seriously want to own a home are going to have little choice but to review their requirements and make some adjustments. One of the benefits of this crazy market will be renewed interest in neighbourhoods which have been viewed as “undesirable.” I’m not sure I’d roll the dice on Riversdale yet though the River Landing project does provide an opportunity. I like Caswell Hill, Mayfair and Westmount if the homes in those areas will fit within the budget.

By: Todd

Todd — Tue, 07 Apr 2009 19:31:37 +0000

Not that this is going to make you feel any better Glen, but I think the lower valued areas, especially ones with good quality character homes are about to be gentrified. When you have good quality people who are looking for affordable homes and can only find ones in areas they would not have previously considered, it would tend to move the neighbourhood more upscale.

I’ve already seen one or two houses listed near the new farmer’s market with new flooring and cabinets. Yes, I still wouldn’t personally want to live there but when people are buying up these houses, refurbishing them and selling them, the new owners will take pride in them. I think some of the sketchy areas are going to turn around, if ever so slightly. Will this happen tomorrow? No, but over the next 5 – 10 years? Maybe.

By: Glen

Glen — Tue, 07 Apr 2009 19:31:13 +0000

This not what I want to hear as a first time home buyer. The pricing of housing is getting rediculious in Saskatoon. This market is definetly weeding out the low income and first time home buyers. Granted I can afford to buy in Saskatoon but, living on ave. h south isn’t that appealling. First time buyers are getting out bid on just about everything. I’ve talked to another couple who have been out bid on 4 homes so far and counting. I just hope that this market slow down so people like myself can finally get something. Wishful thinking. To boot this is driving rent right through the roof. I just needed to vent for a second.

Thanks. Glen

By: Norm Fisher

Norm Fisher — Tue, 07 Apr 2009 19:30:56 +0000

Hi Jerry, I think you may have been adding the “Listed” column as that comes very close to the 537 number you quoted. The actual sales are much closer. Having said that, you can expect to see some minor variances between the weekly stats I’m using and the monthly stats. When I do the weekly numbers I’m looking at units reported “sold” during that week. If a deal was conditional, the actual sale date may be reported as being sometime in the previous week. The monthly numbers were pulled using a “statistical” program built in to the MLS system and I believe it actually reports based on “date sold.” Again, while there will be some minor variances both methods should be useful in providing a snapshot of the current market trend.

On the 15K price change, I expect that there may be a small bit of skewing based on the types of homes sold. For instance, there was one house reported at $959,000 which could affect the average by close to $3,000. On the other hand there could be some real junkers reported that skew the average down. The average should be viewed with some suspicion, but again, over the long term they tend to provide some insight into the trend. I’m not in a position the delve much deeper than I am. Manual calculation of the weekly stats takes about as much time as I can commit.

May did see more sales in the 300+ range when compared to April (102 units vs. 89). However, 18 of the May sales where sold from 300-320. If prices did rise 15K, most of these homes would have landed in the -300 range had they sold in April. In other words, if prices are rising and unit sales are stable or increasing we would expect the see more sales in the 300+ range each month.

Thanks for reading.

By: Jerry

Jerry — Tue, 07 Apr 2009 19:30:32 +0000

HI, Norm

I compared the number you listed in this poster and in the posters from April 30 till May 25. The sold houses during April 30 and May 25 hit a number of 537 based on your posters, not counting the numbers from May 26 to 31. However, a number of 459 was listed in current poster. I am wondering what makes the difference. In additon, what contributes to the increased price of 15,000? Was it an increase of total price or just an increased sale of expensive houses like priced over 30,000 and thus makes the average price higher than last month? Thanks again for your hard works on this analyzed data and your answers.