Saskatoon real estate: Week in review (April 2-5 2007)
Home buyers found no relief in a hectic Saskatoon real estate market this past week as the total percentage of homes which sold at or above the asking price increased to 81% and average over bids topped $20,000 for the first time. 56 of the 80 homes which traded hands sold above list price.
Saskatoon’s Area 5 stands out as the hottest trading area with the highest average over bid at $23,268. None of the 12 sales reported in that zone sold below the list price. Sellers in Area 1 also did exceptionally well with 18 of 21 sales going above list by an average of $21,283.
Here’s a quick look at the numbers.
Notable sales:
- Forest Grove one-bedroom condo (635’) sells for $120,000.
- Wildwood condo (800’) leaves the market at $145,500.
- Haultain condo (740’) fetches $137,700.
- Mount Royal bungalow (912’) brings $189,000.
- Lakeview two-storey (1,800’) sells $44,500 above list at $354,500.
- Pacific Heights bungalow (1,041) fetches $177,900.
Active listings of single-family homes and condominiums remained desperately low at 237 units across all areas and price ranges. It seems that 4 out of 5 inquiries to a listing agent results in a “sorry, we have an offer on that one.”
See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports
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 @SaskatoonHomes.
Norm Fisher
Royal LePage Saskatoon Real Estate
6 comments so far. We'd love to hear your thoughts.
April 3rd, 2009 at 4:27 PM
None of these statistics are worth being proud of.
The market is strictly for-profit now. Doesn’t anybody want to buy a home to live in it?
Not enough is being done to put people in homes here in Saskatoon. What’s being done just ensures that people who already have homes can move around and trade amongst the house owning elite.
April 3rd, 2009 at 4:28 PM
I agree with most of your comments except the suggestion that nobody seems to want to buy a home to live in. There are many, many people trying to do just that and that is what makes our current situation so sad and difficult.
Please don’t assume that these numbers are posted as a badge of honour to be proud of. I am not the least bit pleased with the direction this market has taken and I’ve always preferred the slower but steady growth which has been so typical of the Saskatoon real estate market. There are many people who’s dreams of owning a home have been shattered, and many more to come by the looks of things. You’re right. That’s nothing to be proud of.
April 3rd, 2009 at 4:28 PM
I think the most frustrating part is, it’s not the prices that are necessarily out of control, it’s the low availability that causes the frantic bidding wars that is the problem.
The frenzy to “buy now” is what is driving this market out of control. There are too many panic-buyers, and they’re shooting us all in the foot, including themselves.
There was a time when buying your first home was supposed to be “fun” and “exciting”, and I can’t think of anything about the current situation that is “fun”. I am at the point of tears nearly daily, not because I can no longer afford a home, but because when I do see one I like, there’s a 90% chance I won’t get it.
Being told to waive a home inspection is just not acceptable (unless the seller has gotten one done recently), and there is no home I’d want enough to buy without that condition unless it’s near-new. The fact that that could lose me a home is sickening.
Or the fact that I can put down a few thousand dollars as a deposit (essentially my life savings), and Johnny Moneybags can come in, have essentially the exact same offer as me, but a larger deposit, and steal my house away. It’s got nothing to do with Johnny being more “serious” about his offer, he just has more cash in the bank. Which doesn’t even go directly to the seller, so I can’t understand the sellers’ perspective on that one. I urge anyone selling their house to take things like that into consideration as well.
I really appreciate this blog Norm, and all the time you put into it just help out buyers like myself. Sometimes it’s nice to have someone sympathize with those of us caught up in a process that is supposed to be the most exciting time in our lives, and are instead finding it a nightmare.
April 3rd, 2009 at 4:28 PM
Is there any data on how many of the area 5 buyers are from out of town?
April 3rd, 2009 at 4:29 PM
Sorry Jeff, there are no local stats available that identify who the buyers are. I wish I could get our board to do that but it would require a lot of cooperation from abour 400 agents. Thanks.
April 3rd, 2009 at 4:29 PM
Buyer,
I can relate to what your saying on every level.
I’m not having much fun either. I was speaking with a colleague whom I really respect yesterday. She has over 20 years in the business and is perhaps the hardest working person I know. She has absolutely loved the business and it really shows in her enthusiasm. She said, “Norm, for the first time ever I’m feeling like I hate my job. I’m just not having any fun.” We’re feeling it too, but I’m sure I don’t need to burden you with my problems.
I agree with your point that writing an offer with no home inspection is a huge gamble. This is something that even the sleaziest agent would have been reluctant to suggest six months ago. At the same time, we really need to educate our buyers on what they’re up against. I’m not sure what the solution is. It would be nice if home sellers would undertake an inspection themselves and offer that up for buyers to review. I wonder though if that could backfire on the seller if a problem was overlooked by the inspector and the report was taken as a representation from the seller that the home was problem free.
You’re also right about your deposit. A large deposit only serves the seller if the deal falls apart. A first time buyer that throws the better part of their 5% down payment forward is showing a strong commitment. If they back out, they are probably out of the market for a long time. It’s easy for “Johnny Moneybags” to write off a five figure deposit.
We need to start talking about people and homes, as opposed to “investments.” I would love to see John and Sally home buyer purchase my listings before XYZ inc. any day. How do we get back there? I wish I knew. I wish I had some answers for you.
Good luck out there!