One third of homes for sale in Saskatoon are vacant, fewer than half owner occupied
Earlier today, I was speaking with one of my colleagues, Bruce Claggett, who raised the question, “I wonder how many of the homes for sale in Saskatoon are vacant?” Our new MLS system didn’t provide a method of searching by occupancy, so I dropped SRAR an email and suggested that this would be a valuable search field to add. By the end of the day, Harry made it happen.
Here’s what I learned.
At the close of business today, there are 666 active property listings in the residential category (I know, kind of spooky). 
225 of those properties are vacant.
Tenants occupy another 130 of these listings.
A closer look at the vacant property listings reveals the following.
93 are condos.
104 are single-family homes.
The balances are semi-detached homes, duplexes, mobile homes, vacant lots and other properties that have not been categorized for reasons unknown to me.
94 of the vacant homes are new, or near new.
57 of the new or near new homes appear to be owned by builders. Some are still under construction.
Individuals own 37 of the new or near new homes.
Of the 225 vacant listings, 93 are condominiums.
21 of these vacant condominiums are new, or near new.
10 are in the Rumley building representing additions to the housing stock.
About two-thirds of the remaining 62 are conversion units.
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
22 comments so far. We'd love to hear your thoughts.
May 14th, 2009 at 9:57 AM
This is interesting. If selling a property that would be great for investors (i.e., fully suited w/ 2 garages). Do you think buyers would generally prefer it be vacant or occupied w/ renters?
May 14th, 2009 at 9:57 AM
Potential seller,
If the home is already vacant, I think I’d market it that way. That leaves the door open for owner occupancy. It’s not difficult to find a good tenant. If your buyer is an investor they can easily manage to rent it. If I were buying revenue property I think I’d just as soon select my own tenant.
May 14th, 2009 at 9:58 AM
So “At the close of business today, there are 666 active property listings in the residential category (I know, kind of spooky). 225 of those properties are vacant.” That’s a lot of vacant property for sale. Makes you wonder if, after exceeding Edmonton’s average price (www.thebench.ca), while earning a lower average wage, Saskatoon’s real estate market has topped out? It seems speculation and turning a quick profit is more behind this boom than anything, and that it lacks fundamentals. Now likely sooner than later, people will realize that speculation, not the “population boom” are behind the increase in prices, especially if over 200 houses for sale are available and vacant. Unfortunately for those who have bought houses at high prices, large losses will likely be inevitable.
May 14th, 2009 at 9:58 AM
Weird you mention Bruce, I used to date his sister….
May 14th, 2009 at 9:59 AM
Saskatoon still has a long way to go before topping out by the sounds of things. From what my friends have been told by their realtors, we are in for just as crazy of a summer as we had last year. My one friend who bought over in the Market Mall area was told his $200,000 condo would be worth closer to $300,000 by next spring, and my other friend who bought over in Nutana was told that her condo would likely be worth $40,000 over her spring purchase price by the end of the summer. If these realtors are correct, we still have a long way to go before we see prices level off.
May 14th, 2009 at 9:59 AM
Wow.. I don’t know who realtors are that would tell clients how much they thought their properties would appreciate within a year. I think, if true, that borders almost on inappropriate behaviour. Now if they said, “if things continue at this pace…” in front of that, I guess it’s ok, but I don’t think you’d find many reputable realtors that would do this.
May 14th, 2009 at 10:00 AM
Jason,
I believe those realtor’s are incorrect. There will not be substantial increases in this market. The city just can’t afford it. That one year time line from Edmonton starting to go down is almost here and as soon as that happens, there will not be increases but actually decreases.
Reasons Being (strictly my personal opinions)
1) There are no longer speculators coming to the city to purchase property because it is now to expensive and to risky to spend the kind of money that real estate is going for
2) People who actually live in Saskatoon, with basic jobs, cannot afford to be first time home owners, they’re pushed out of this market
3) There is no longer any benefit for someone to move from Alberta because Saskatoon real estate is just as expensive, but yet all the jobs pay way less
4.1) Speculators (the many of them) are going to start to try to sell because they’ve made plenty of cash in the last year – year and a half and now it’s time to move their money elsewhere.
4.1.1) Property listings are at an all time high (part of point 4.1) and soon it will be a buyers market, not a sellers market, just like Edmonton and Calgary.
I don’t see any reasons at all that would increase the market prices, if you have any let me know.
May 14th, 2009 at 10:01 AM
Todd,
That is a very true statement. I think some realtor’s in this market are pretty new at this and probably shouldn’t be saying the things they say. Like over bid a place by $30,000 (realtor told me that one personally, i laughed at her)and that was on a $200,000 condo. She wanted me to overbid by 15%, that’s crazy!!!
Also, with the numbers that Jason Provided $200,000 to up to $300,000 in a year, that is crazy!! That would be another 50% increase in price, not happening!!!
May 14th, 2009 at 10:01 AM
I agree that its totally reckless for an agent to tell a buyer, “it will be worth X in X amount f time.” This is the stuff lawsuits are made of. Hopefully people hearing this are sharp enough to understand why an agent might want his or her buyer to think that way.
To Wesco’s points though.
1) There are no longer speculators coming to the city to purchase property because it is now to expensive and to risky to spend the kind of money that real estate is going for.
Sorry, I’d like to believe that as well but I’m still answering inquiries daily and my broker just passed a referral to one of our agents. Buyers from Denmark buying sight-unseen. I hear some Edmontonians who have already invested 15,000,000 is residential RE here are looking to double up in the next couple of months. Seems these outside investors see our little world far differently than we do.
As long as publications like the Globe and Mail are promoting Saskatchewan as the land of milk and honey, we’ll have speculators nosing around.
3) There is no longer any benefit for someone to move from Alberta because Saskatoon real estate is just as expensive, but yet all the jobs pay way less
I suppose, if you believe that people would only move for financial reasons.
4.1.1) Property listings are at an all time high (part of point 4.1) and soon it will be a buyers market, not a sellers market, just like Edmonton and Calgary.
Sorry again. Far higher than they were at this time last year but nowhere near “all time high.”
I am thinking that things are about to level off, and I wouldn’t really mind seeing buyers et some advantages which have been missing for far too long, but I think we’re a ways away from being a “buyer’s market.” We need at least 1000-1200 listings before we have a balanced market.
May 14th, 2009 at 10:02 AM
Wesco/Norm,
You guys forgot one point. Alberta people who want to move back to SK will be stuck because their current property isn’t selling and may have to take a substantial loss to get out.
Norm,
Out of curiosity, what IS the “all time high” for property listings in Saskatoon? I want to see how quickly we can reach it! ;’)
May 14th, 2009 at 10:02 AM
LOL!! Well at least you never debunked all my statements, nothing for point #2??
Just curious, what is the all time high then? ans when was it?
May 14th, 2009 at 10:10 AM
Jason:
I don’t think your friends were getting market projections — I think they were being gamed.
Buying based on expected value is folly, not to say dangerous.
I’d like to know what the record inventory was too!
May 14th, 2009 at 10:11 AM
Heather,
The ‘all-time highs” were long before my time. I recall periods where we’ve had 1200+ and my colleague Pauline remembers 1800+ in the late 80′s.
Wesco,
I wholeheartedly agree with your second point.
I do see some correlation and I agree that Saskatoon becomes less attractive financially as the price gap closes. However, as I’ve said before, many of our sons and daughters live there now. We’re back here getting older. It doesn’t seem like a real stretch that there may still be some draw back this way and a hot economy doesn’t hurt either.
May 14th, 2009 at 10:13 AM
I have a close relationship with a big builder in Saskatoon and I can assure you there is still a lot of outside interest in the Saskatoon market. This negativity and wanting the market to crash is just so typical though. Prices should level off because you are right wages cannot keep up, but in order to keep this boom going a little positivity helps.
And regards the listing without sold signs on listings I know of 3 homes in Briarwood that are sold but the realtor has yet to update the listing. Ride the wave this excitement won’t last forever, but maybe that is what the people of Saskatoon want. To go back to the nineties.
May 14th, 2009 at 10:13 AM
Top Shelf,
I don’t see the signs of any booms just yet. From my experience, “Booms” bring thousands of construction workers to your area. I don’t see those numbers of construction workers to Saskatchewan. A boom is Toronto in eighties, Vancouver in nineties and Alberta in the 2000′s. All these locations brought construction workers from across the country (and out of the country) to work there. I don’t deny that Saskatchewan needs and would benefit incredibly with thousands of new construction workers, but they are not here yet. If and when (hopefully when) then it will be a boom and the economy will have the ability to really take off.
May 14th, 2009 at 10:15 AM
I totally agree with you, our building company has sold more than 200 homes and condo’s since 1997 and we are still getting pinched for trade help. It is common knowledge that getting a taper in this city is just about as hard as finding a needle in a hay stack. We are in talks with a crew from Vancouver that flies in for 2 weeks and then out for 1. Trying anything to get ahead. That is the problem though no one wants to move. From East or West, we all know that we have the “potential” to boom(is that better) but I don’t think that construction workers are what you base a boom on. Sure it is a sign but not the defining mark, but maybe I’m wrong.
May 14th, 2009 at 10:17 AM
Top Shelf,
Exactly, it’s not the deciding factor of a boom, but having construction workers coming to your area is, I believe, the biggest sign of a boom.
May 14th, 2009 at 10:20 AM
I think the market is topped out. I just wish I could afford rent here. Then who would care about buying?
May 14th, 2009 at 10:20 AM
Dougy. All you do is go from blog to blog and rant and rave about how much more prices are than in Albert, more specifically Edmonton. We know ok, we know, please just for once say something different, anything! Please!!!
May 14th, 2009 at 10:20 AM
hope ther is a boom in saskatoon im a framer for both residetial and commorcial coming to saskatoon in june and i allready have some work
May 14th, 2009 at 10:21 AM
Hi I just moved to Saskatoon a few months ago from Vancouver and have used Norm’s and Bruce’s real estate services. They are great! Everybody seems to compare Alberta to everything going on here, but in reality alot of people from BC are also relocating here. Yes, it can be a financial situation but it is more so a quality of life decision. Saskatchewan is a great province, but it needs people. The housing market here has always been under par. What is happening now is that it is starting to come up to bat. Housing prices here have been so low for many years, but that is not a reality. The reality is there is prime property here, and people from other urban areas are starting to see that Sask has alot to offer. Vancouver and Victoria, 25+ years ago were undervalued. Off course Vancouver has become ridiculous, but Victoria is going through what Saskatoon is. My point is, Sask is still affordable compared to other centers. For example minimum wage in Sask is comparable and better than BC. Minimum wage in BC is $8, minimum wage in Sask is $8.60. Now look at housing between Vancouver and Saskatoon. In Saskatoon you can get a house for $200,000 on the westside. In Vancouver, that same property will cost you 700K+.
May 14th, 2009 at 10:21 AM
Hi Maria,
Thanks for sharing your thoughts. Nice to see you again.