Builders in Saskatoon started construction on 1,608 single-family homes and 1,386 multi-family dwellings for a total of 2,994 homes, up from 2,381 last year to mark an annual gain of roughly 26 percent.

Meanwhile in Regina, construction got underway on 958 single-family homes and 736 multi-family dwellings to close the year with 1,694 starts and a year-over-year gain that also reached 26 percent.

“Saskatchewan’s expanding economy and labour market continued to attract elevated numbers of migrants into the province’s centres. This bolstered housing demand in 2011 and fuelled a pace of starts rarely seen across the province,”  Michael Fabiyi explained in the CMHC media release.

Read the coverage in today’s Star Phoenix.
See CMHC’s Preliminary Housing Start Data report.

The primary recommendation in the report is a relaxing of the current direct control zoning regulations that limit the types and numbers of businesses that can operate in suburban areas.

City administration will study the report and bring their recommendations to council in the near future.

Read: Report forecasts major growth from the Star Phoenix here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

Victory Major Investments took over the project from Lake Placid Developments last year when the developer failed to secure adequate financing. Initially, Victory promised quick action on getting the project started but later petitioned the city for changes to the previously approved project.

The approved changes have the potential building height increasing to 95 meters, from 68 meters, commercial space increasing from 30% to 40% and the allowable floor space increasing by as much as 50 percent.

The MVA is a conservation organization dedicated to conserving the natural and cultural heritage resources of the South Saskatchewan River Valley in Saskatoon. As such, all of the development at River Landing in Saskatoon’s Central Business District must meet their approval.

Read: Zoning changes approved for River Landing project.
Read: MVA greenlights art gallery, Nasar Magaproject in River Landing.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

Read more from the Saskatoon Star Phoenix here.

Canada Housing and Mortgage Corporation

Here are some highlights from the report.

• Third quarter housing starts slipped lower to 735 units, down 4 percent from the same quarter in 2010.
• Year-to-date starts (to September 30) sit at 2,231 units, up 27 percent from 1,755 starts in the same period of 2010.
• Year-to-date gains are attributed to the production of multi-family dwellings.
• In the multi-family category, 565 apartment units were started during the first three quarters of this year.
• Low interest rates and a scarce supply of rental units helped support heightened demand in the resale market.
• Resale transactions increased by 21.5 percent over the third quarter of last year.
• Residential listings increased 2.9 percent over the previous year but the strong pace of sales negated increases to the supply.
• Balanced market conditions prevailed through the quarter with average prices gaining just 2.7 percent compared to the same period last year.
• The Saskatoon labour market softened during the third quarter with total employment declining 1.6 percent from the same time last year.
• Saskatoon’s seasonally adjusted unemployment rate climbed to 5.7 percent, up from 5.5 percent at the same time last year.

Read the entire report here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

I’ve just been reviewing the housing strategy for the New Democratic Party (NDP), which is substantially more comprehensive. According to their platform brochure, the NDP plans to implement the following housing initiatives should they end up forming a government following the November 7 election.

• Rebating the PST on construction materials for new houses to be priced under $280,000; and
• Rebating the PST on the first $10,000 in repairs to homes more than ten years old.
• Investing $20 million into co-operative and community organizations to buy land for housing.
• Providing first-time homebuyers a $2,000 grant to cover closing costs and other related expenses for homes purchased for under $280,000.
• Offering interest-free loans to co-operatives and community organization building new housing stock.
• Ending unfair rent increases through next-generation rent control. We will  introduce rent control that makes allowances for new construction and non-corporate landlords.
• Investing $230 million to create 2,500 new public rental units, with 1,000 units dedicated to student accommodation, and to upgrade existing units by working with community organizations and co-operatives.
• Making a commitment to end homelessness with $20 million targeted to a “Housing First” approach, based on the belief that a stable place to live is a basic right and a critical building block to helping individuals gain stability in their own lives.
• Adding 750 new subsidized affordable assisted-living units, with special attention paid to building these onto long-term care homes so that couples who require different levels of care can stay together.
• Providing a property tax rebate of $500 per year to senior homeowners and renters.
• Introducing the Credit for Caring refundable tax credit of up to $1,000 per year to individuals providing care to elderly or disabled relatives or friends.
• Guaranteeing Saskatchewan residents the lowest-cost bundle of utilities in the country.

Read the NDP’s platform brochure here.

Read the Saskatchewan Party’s platform brochure here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

The overview of the report argues the following points, and others.

• The now inevitable downturn in the housing sector will severely constrain economic growth over the next couple of years, as consumption expands at a more muted pace and housing investment shrinks back towards a more normal size. Economic growth will rely increasingly on business investment and net exports.
• Over the last several years, growth in consumption has far outstripped income gains, as households have gone on a spending binge, funded by credit growth and home equity extraction.
• With household balance sheets stretched and house prices expected to fall, however, we forecast that growth in consumption spending will lag income growth for the next couple of years, as households focus on rebuilding their saving rate.
• House prices have been growing rapidly for nearly a decade now and it has reached the point where housing is so overvalued relative to incomes that a downward correction seems unavoidable. We fear that house prices could fall by as much as 25% over the next three years.

The complete report from Capital Economics can be found here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

Madani, in a report released this week titled, “Canada Economics Focus, house prices likely to fall for several years” says rising interest rates and near stagnant wage growth resulting from low inflation will cause housing affordability to deteriorate substantially in the years ahead taking values down an estimated twenty-five percent.

The report is an interesting read addressing some of the typical, “Can’t happen here because” arguments while taking a look at how such significant declines might effect the economy and Canada Mortgage and Housing Corporation.

Read it here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

“The biggest thing that I experienced was a complete loss of self-esteem. To do that, to be sitting on the sidewalk, to be visibly homeless, to look through a garbage for whatever you can find, bottles, to ask people for change you have to drop all of your self-respect. It makes you feel like you’re a whole other species and that’s one of the problems with being homeless. You’re just different from everyone else and you’re not worth it, and you don’t feel like you’re worth it.” David Ferris

Part One

Part Two

“You hear a lot of people and they think that people who are addicted to drugs must be stupid or unintelligent. If they’re poor, or on welfare they must be stupid. Just through circumstances people lose their way. From my experiences I believe the most important thing is for them to make the decision that they want to move on, that they’re ready to move on but in order to do that they need to believe that they can. Don’t let them slip through the cracks.” David Ferris

Norm Fisher
Royal LePage Saskatoon Real Estate

This is not your typical CMHC report. Rather, it’s an extensive review of the “state of Canadian housing” that goes well beyond a basic market update. In fact, the market update component is relatively small and looks back to 2009. Certainly, you’ve “been there, done that.” What you’ll find in this year’s Housing Observer is a pretty exhaustive presentation on the following seven topics that I pulled from the table of contents of the report.

Housing and the Economy
Housing Finance
Current Market Developments (if you can call 2009 current)
Demographic and Socio-economic Influences on Housing Demand
Recent Trends in Housing Affordability and Core Housing Need
An Exploration of Alternative Measures of Housing Need
The Equilibrium Initiatives

Download and read the report here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

Meanwhile, Statistics Canada released some income figures from the tax returns of Canadians and Saskatoon, with a median income of $77,740, recorded the largest year-over-year income gain to enter the top ten list of the highest income earning cities at number nine.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

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

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

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

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

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

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

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

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

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

The Salvation Army maintains that homelessness is on the rise across the country as a result of the recession. Of course, a number of factors contribute to the growing problem to homelessness. An inability to find affordable housing was a contributing factor in up to sixty percent of instances of homelessness.

Read the report here.

Norm Fisher
Royal LePage Saskatoon Real Estate

“If we see further evidence that there’s excessive demand in the housing market, or that there’s an indication that people are taking on obligations that they will not be able to handle in the future when interest rates do rise, then we’ll take some action,” Flaherty told the CTV.

Historically low interest rates intended to spur economic activity have pushed demand for homes higher resulting in sharp price increases in many Canadian markets. Near record level activity in our largest and priciest markets, Vancouver and Toronto has helped push the average selling price of a Canadian home to $368,665 (according to the Canadian Real Estate Association) , roughly twenty-percent higher than it was at this time last year.

“The likely action we would take is to increase the size of the down payment from five percent to a higher amount and probably, once again, reduce the amortization period. So, bring it down from a maximum of thirty-five years to something less than that,” Flaherty said.

I’m going to guess that December’s sale numbers will continue to fuel concern and bring us closer to seeing at least one of these changes implemented. Also uncertain is whether these changes would take effect immediately or if they would be effective at some future date.

Thanks to @JenCT for the heads up.

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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

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

Norm Fisher
Royal LePage Saskatoon Real Estate

Knowing full well that calling these loans will lead to losses, these sub-prime lenders are hard at work using lobbyists to try to convince your government that you ought to be on the hook. Apparently, these are “healthy mortgages” given to individuals with “impeccable payment histories.”  The lenders will be “forced to foreclose on them” if the government doesn’t establish a one billion dollar fund to bail them out.

The effort is cleverly disguised as a bailout of unfortunate homeowners, but hopefully the Canadian people can read between the lines. Apparently, most of these mortgagors would not qualify for financing through a mainstream lender, or for mortgage insurance. As the Canadian Mortgage Trends blog points out, “Makes you wonder how healthy they are if the borrowers can’t re-qualify.”

Ivan Wahl, CEO for Xceed, a sub-prime lender who will call loans on 1,100 Canadians when they come due reportedly said in an interview with the Globe, “The government certainly should step up to the plate to provide some facilities for people who got caught in the crunch.”

It’s clear what a win this proposal would be for these investors who would land on their feet with every penny due after milking this risky scheme for all it was worth. As sad as it would be for those homeowners who took these loans and lived up to their agreement, the taxpayer should not be on the hook for these mortgages. The mortgages should be dealt with in the manner prescribed within the agreement. Some people will lose their homes. That’s a harsh reality of these types of risky ventures. For those that have sufficient equity, the months ahead should provide some strong selling opportunities. For those who are in for more than the home is worth, let’s send that loss back where it belongs, to those who cooked up the hair brained scheme in the first place.

Homeowners that have been notified that their mortgage will not be renewed should immediately explore their options. Can you re-finance with another lender? Is there enough equity in the home that you may be able to sell the property? See a lawyer who understands foreclosure to find out what rights you have under the law.

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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Release: Immediate
Date: Friday October 30, 2009
Contact: Mike Lobsinger, Chief Executive Officer Lake Placid Group of Companies

(Saskatoon, SK, Canada): Michael E. Lobsinger, Chief Executive Officer of the Lake Placid Group of Companies, announced today that Lake Placid is in a situation where delays have arisen around the deadline with the City of Saskatoon. For this, Lake Placid sincerely apologizes.

International finance is a complex and time consuming process. Lake Placid continues to work with its international financier to provide the $200 Million credit facility that is required for the development of Saskatoon River Landing.

All development and legislative approvals were not obtained until May 2009. Pursuant to the lender’s written financial commitment, the financing is still expected to arrive but will not do so in time to meet the October 30 deadline. The City of Saskatoon will be advised that although Lake Placid is not in a position to meet today’s deadline, it may be in that position very shortly.

It is particularly unfortunate that circumstances beyond the control of Lake Placid have resulted in missing this important deadline. Lake Placid has spent two years and over $7 Million planning this premier development which includes payment to the City of Saskatoon of over $700,000. Lake Placid has received significant interest from the local community for the purchase of residential properties, and from commercial tenants and hoteliers. They will be contacted directly.

Lake Placid would like to thank all of the supporters of this project including the City of Saskatoon administration, City Council and the Mayor’s office for their significant support in the progress made to date. In addition, Lake Placid would like to thank the Premier of Saskatchewan and the appropriate Ministers who worked diligently to pass the necessary amendments to the Condominium Properties Act and the Land Titles Act which allow for the development of mixed use projects in Saskatchewan. Without those legislative amendments which were passed in May 2009, this project could not have proceeded.

Lake Placid believes in the future of the great city of Saskatoon and has every intention of developing there in the near future. The company thanks everyone for their patience and understanding in this matter.

A British Columbia businessman, Rexy Silva and his daughter, Tabitha will operate the Uptown Market and offer a full selection of fresh produce, meats, eggs, dairy products and other essentials. They hope to have the 5,200 square foot grocery store open by Christmas of this year.

Saskatoon’s Central Business District has been without a grocery store since late 2004 when the Extra Foods on 3rd Avenue North closed its doors.

Learn more about the Central Business District.

If you live in Saskatoon we’d sure appreciate hearing your comments about your neighbourhood. Please visit our “Saskatoon neighbourhoods” page and let us know what you love about your community.

Norm Fisher
Royal LePage Saskatoon Real Estate

“In order to ensure we continue our economic growth and to build a more diverse, dynamic and cosmopolitan community, both in Saskatoon and right across the province, we need to make sure that more people have more education and more skills training and that way they can help to sustain the growth. The Saskatoon Trades and Skills Centre Inc. will help meet the demand for skilled tradespeople in the province and expand Saskatchewan’s economic opportunities,”  said Rob Norris, minister of advanced education, employment and labour.

Star Phoenix story here.Learn more about the Mount Royal area of Saskatoon.
Visit the Saskatoon Trades and Skills Centre website.

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 @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

In a story just published on the Star Phoenix website, Mayor Don Atchison is quoted as saying, “It’s all about certainty, and in the financial markets today it’s all about certainty, not guesswork. This is absolute certainty now. You heard me at the end there tell (Lake Placid CEO Michael) Lobsinger if he doesn’t come up with the $214,197.14, the deal is finished, or if it doesn’t come up with the money for the land, it’s terminated as well. There’s no more chances.”

Read the Star Phoenix story here.
CBC’s report is here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Real estate geeks can follow our daily updates on Twitter @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

In a letter to the city, the developer requested an extension to June 30, 2010. City manager, Murray Totland will recommend to city council on Monday that the extension be granted.

Read the Star Phoenix story here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Dear Norm,

“The legislation needed to move forward with two of the biggest private developments in the province, both slated for downtown Saskatoon, was passed this week.”

Star Phoenix, May 02 2009

We have very exciting news! We are now offering the Residences at River Landing Village for sale! For those of you that have reserved a unit, this is your opportunity to make that unit yours with a 10% deposit. If you have not reserved a unit we encourage you to visit our sales centre, as we have many great suites still available. Please call Richard or Gail at (306) 683-4350 to make an appointment.

As you may know, we have experienced delays due to the current land titles act. As you can see in the quote above from the Star Phoenix, we have overcome these issues.  In simple terms, the Government is going to allow multiple strata’s (owners and users) on a single title (parcel of land). We are very excited about this progress, and we will begin construction as soon as these changes are complete.

We hope to hear from you soon and encourage you to visit us, as suites are selling quickly!

Sincerely.

Lake Placid River Landing

The River Landing Village website is here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Since the subprime mortgage meltdown in the United States, Canadian leaders have assured the public that a similar tidal wave of foreclosures can’t hit here. They have cited the prudence and market dominance of Canada’s five most prominent banks, the conservatism of Canadian consumers and the tiny, 7-per-cent market share of subprime lenders, which is much lower than their 22-per-cent market share in the United States. Just four days ago in a speech, Prime Minister Harper said: “We have avoided the extreme of the unregulated, or barely regulated, financial and mortgage industries that has caused such grief around the world.”

However, The Globe’s investigation shows that while Canada’s real estate sector hasn’t suffered as much as its counterpart in the United States, the Prime Minister and others have grossly underestimated the impact of that small portion of subprime lenders. Until recently, companies who touted their low standards with slogans such as “We Say Yes When The Banks Say No!” and “No Income Verification” proliferated here.

Read the Globe and Mail story here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

On a year-to-date basis (January and February), housing starts are down 50% across Canada. Saskatchewan leads the provinces showing the largest decline, off 74% with just 152 starts this year compared to 578 for the same period in 2008.

Saskatoon’s year-to-date housing starts sit at 57 units, a decline of 85% over the same period last year. Kelowna was the only Canadian city to post a larger drop with starts falling 96%, year-over-year, from 735 last year to just 28 this year.

Paul Caton, CMHC senior market analyst told the Saskatoon Star Phoenix that new home construction is off to a slow start this year as developers work to finish and sell the houses they began building in 2008.

CMHC’s Preliminary Housing Start Data is here.
The Star Phoenix story is here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate