MLS home sales slow nationally in February 2008: CREA
Residential real estate sales softened nationally in February, edging down 6.4% from January, and 9.6% compared to February 2007 according to the Canadian Real Estate Association (CREA).
“Snowfall in Toronto made it tough to show prospective buyers, and tough to process a listing,” said CREA President Ann Bosley. “It was one of the toughest months ever weather wise for REALTORS® in Toronto.” (Brilliant guys!)
Seasonally adjusted residential sales activity declined by more than new listings, making the resale housing market more balanced in February 2008 than in any other month in over nine years.
A monthly decline in sales activity coupled with strong gains in new listings caused resale housing markets to become significantly more balanced in February in Regina, Saskatoon and Newfoundland & Labrador, which had been the three tightest major markets in January. Edmonton, Calgary and Windsor remain the most balanced major markets, while Saskatoon and Winnipeg are now the tightest.
“More balanced” in Regina and Saskatoon? Hmmm.
Read CREA’s press release 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.
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Norm Fisher
Royal LePage Saskatoon Real Estate
11 comments so far. We'd love to hear your thoughts.
May 15th, 2009 at 2:53 PM
Norm,
Sorry, this is off topic but I couldn’t resist the find. H/T to Vicki Moore. It’s a little widget from the New York Times some of your first time buyers might like. As a visual Rent vs Buy graph calculator it’s a pretty slick toy.
http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html?_r=4&oref=slogin&oref=slogin&oref=slogin&oref=slogin#
May 15th, 2009 at 2:54 PM
Hey Larry,
Thanks. I had come across that “little widget” somewhere in my travels yesterday. I was thinking that there is a significant difference in the way that mortgage payments are calculated in the US, but I may be wrong. Anyway, thanks for sharing it.
May 15th, 2009 at 2:55 PM
I assume that “more balanced” means “having more inventory”?
May 15th, 2009 at 2:55 PM
jrochest,
The last paragraph in the post is rather confusing. We’re “significantly more balanced” given that we were among the “tightest major markets” in January, yet we are now, along with Winnipeg, “the tightest.”
I would define a balanced market as one where buyers and sellers have equal opportunities. We may have a little more inventory but the scale is so far tipped in the seller’s favour that it’s difficult to cause much movement on it.
I hope that the current trend towards more inventory continues.
May 15th, 2009 at 2:58 PM
http://albertarealestatewatch.blogspot.com/2008/03/saskatoon-thought-experiment.html
for Heather and Jesse
May 15th, 2009 at 2:58 PM
Cindy,
I hope you don’t mind that I read it.
This is what we call “rational thinking.” The idea that “if you don’t act now you’ll be out forever” is completely ridiculous in most instances. Hopefully there will always be some way, and some place where we can discover and realize our dreams. Thanks for sharing this.
May 15th, 2009 at 2:59 PM
Just thought I would share another link (hope this is OK Norm) to Liberal politician Garth Turner’s blog. Has some other interesting reads on Canadian real estate in general.
http://www.greaterfool.ca/
May 15th, 2009 at 3:00 PM
Thanks, Norm. “Priced out forever” is impossible, and it’s nice to hear a realtor say it. Entry-level buyers have to be able to buy, or the market crashes.
This is what’s happening in the US at the moment: no-one is buying, partly because prices are too high, partly because mortgages are harder to get. So no new buyers enter the market, and no-one can sell their house, so prices fall, often very hard.
Markets *do* self correct, but there’s often a fair number of mangled carcasses caught in the machinery when they do.
And on that stunningly obvious piece of pomposity, I’m going to bed. Happy Easter, all.
May 15th, 2009 at 3:02 PM
Jason,
Don’t mind a bit. Anything which adds to the discussion is welcome. Thanks for the comment.
jrochest,
I have no doubt whatsoever that some kind of “correction” is in the cards. Hopefully, it doesn’t come the same way that it’s being experienced in the US, or at least not as bad. Ideally, all of the “boom” talk will lead to rapid income increases across the board.
May 15th, 2009 at 3:02 PM
I would be interested to read mr. turner’s book. One question though, if he proposes this theory long enough, it is bound to happen eventually? The reason I ask is because I remember reading a column of his, in the Star Phoenix, probably around 2000 or 2001. This was around the time of the real estate boom in Ontario and he talked about the greater fools theory and specifically about a small house the was drawing outrageous bidding wars in Ottawa.
I realize he is talking about 2015 and he makes some good points on his website. That being said, I remeber being told 10 years ago that there would be this huge shortage of pilots and teachers and a variety of other professions. There is still talk of this labour shortage today. Yet, why do my buddies have to fly bush planes for 5 years to get a good gig and why can none of my teacher friends find jobs in the city (they do exist in remote towns and reserves)?
Turner talks about a drop of 10-15%. I’m not a mathematologist, but if housing were to go up even 5% for the next six years, then come crumbling down 15% as turner suggests, am I not still up 15% (plus whatever gains already earned)? Works for me.
It makes me think of the earlier post on here where someone had a link to show that even with the collapse in the US, places like Phoenix were still up significantly over 2002 prices despite a 30% drop.
May 15th, 2009 at 3:03 PM
Jedi,
I’m pretty sure that I heard Garth Turner making these predictions at a Canadian Real Estate Association conference in the late 90′s. The price of a Saskatoon home has tripled since then. While I am much more openminded about his theories today, I’m certainly glad I didn’t take him all that seriously then. I’m sure I’d still be living in an apartment paying more than I pay for my mortgage. That said, I think you’re right that sooner or later things have to correct. Affordability is just stressed to the max almost everywhere. Something has to give eventually.