11 comments so far. We'd love to hear your thoughts.

• Alex
  April 9th, 2009 at 9:29 AM

  This has happened by a fluke of many investors artificially raising prices in the area and those prices having a sticky permanent effect.

  If buyers were more selective and intelligent, they would have realized the inflated market and influenced prices to drop.

  Sadly, free market ideals are difficult to enforce when population passes a certain point. Everyone is subject to the adjustments incurred by other peoples’ stupid decisions to buy at such high rates.

  It’s also a staring contest that sees the more wealthy as the winner. A fact which clearly puts the investors ahead of the inevitable victims of this surge: the buyers.

  Houses have become like a childrens’ collectible card game. Swapped and used as status icons, but never to be lived in. It’s about time the government realized that houses are one source of the Canadian quality of life. If the free market will only see to gouging as much as possible with houses, then the government should step in and assert that houses should be affordable for all who earn a decent income.

  “What’s a decent income?”

  Stop acting like you don’t know for starters. If you want to say that inflation can’t be controlled, then make sure the wages go up to balance the effect instead of see more people poor.

  Most of all though, stop this frivolous investment before it sees to it that nobody making less than $100,000 a year can get a house.

  Why is everyone so eager to screw each other?

  This is Canada, and every day the capitalist right is throwing away all the bragging rights we have enjoyed as a nation since day 1.

• Norm Fisher
  April 9th, 2009 at 9:29 AM

  I couldn’t help but notice that you didn’t accuse the media of a “conspiracy” on this report.

• SomethingDoesntAddUp
  April 9th, 2009 at 9:29 AM

  A little bit off topic but I had a question for Norm. What do you consider a reasonable commission rate when selling a house?

• Norm Fisher
  April 9th, 2009 at 9:30 AM

  Something,

  There is a very wide range of fee offerings in the market place and I suppose what’s “reasonable” is a question for you and your agent to resolve. There are just too many variables at work here. Where is the property? Is it marketable? What are the seller’s expectations and objectives? What services will the agent provide? How competent is the agent?

  This is kind of like asking, “how much to dig a hole?”

  Good luck.

• Jedi
  April 9th, 2009 at 9:30 AM

  Am I missing something? The RBC affordability report says that affordibility decreased in Saskatchewan, with the 4 types of housing consuming between 21% and 36% of people’s income. It doesn’t give specifics for Saskatoon, but I am guessing those numbers would be higher. Banks don’t like to lend past 40-45% of imcome. Given Saskatoon is around the 40% level, what is Ms. Warren’s beef. In her article there was another link http://www.reportonbusiness.com/servlet/story/RTGAM.20070913.wrcarrick13/BNStory/robNews

  and in it it says that housing in BC consumed 68% of income. How are houses not overvalued there? I understand there are different dynamics at play with foreign investment and climate and so forth, but if one looks at the average wage there compared to housing cost and the same for here I find it a little bit hard to believe houses are THAT overvalued here. Maybe somewhat, but not as much as Ms. Warren would have us believe.

• Norm Fisher
  April 9th, 2009 at 9:31 AM

  Jedi,

  The basis of Ms. Warren’s argument seems to be, “because the price of homes have increased more than they have traditionally increased, they are over valued.” It does seem like a rather simplistic approach coming from an “economist.”

  There are some graphs on page 5 of the RBC study, one of which shows some results for Saskatoon.

• Alex
  April 9th, 2009 at 9:31 AM

  Perhaps the property value should be capped based on the local average salaries. I just thought of this now while reading, so I don’t have specifics on the idea…

  I can’t wait to hear all the rich start screaming out for their precious society-killing money.

• Norm Fisher
  April 9th, 2009 at 9:31 AM

  Alex said, “I can’t wait to hear all the rich start screaming out for their precious society-killing money.”

  You’ll probably have to wait Alex. I expect that “the rich” have better things to do than argue against an idea that doesn’t have a snowball’s chance in hell in the first place. You’re far too intelligent to bring forward these ideas which you know can’t go anywhere. What’s your point?

• Alex
  April 9th, 2009 at 9:31 AM

  I just like to point out the decline in affordability across the country.

  Salaries that used to get you a house don’t. Why is it changing? There is no reason. Inflation as we see it today is driven by greed and nothing else.

  There is not a single cursor – not even oil – that doesn’t boil back down to greed. The prices increase because one person feels they should make more.

  So our house prices go up and our incomes earn us less. Those who are in control of our wages see no problem because – surprise – they aren’t impacted.

  I think what’s happened is just as extreme.

• Norm Fisher
  April 9th, 2009 at 9:37 AM

  Alex,

  I understand your frustration, but here is my point.

  If you and I have a problem which we agree to discuss, and I start out by saying, “I’d like you to jump over the moon,” I have done nothing that can possibly bring us together. Chances are, you feel hopeless to deal with me and we are more divided than we ever were.

  Throwing out unrealistic “solutions” only sets us back.

• Jon
  April 9th, 2009 at 9:37 AM

  Alex is right!

  Time to wake up to this B.S. of overpriced homes!