http://tinyurl.com/lzpzk

http://tinyurl.com/d8q6j

Those (hyper)inflationary scenarios may be some time in coming.

US prices drop for first time since 1955

http://tinyurl.com/dzrm6v

This could affect the RE market, as the U of S is Saskatoon’s biggest employer. Could make a lot of people nervous about making changes at this time.

I also doubt that we’ll see $220,000 for that house but you only have to go back to Q1/07 to see more than a dozen new homes at 1300′ plus for $225K, or less.

“I got bad news for you Fred.”

Question for you. How do you know this isn’t good news for Fred? Why do we assume that because Fred thinks something may happen that he’s hoping it will?

Potential buyer,

“I have heard a lot of comments like Fred’s in the last while. I wonder how interest rates will counteract with the drop he is suggesting??”

I think that low interest rates are driving the market already. In other words, we wouldn’t be selling the number of units that we are selling if it weren’t for the low rates we’re seeing right now. I’m going to guess that spring will be quite “normal” in terms of unit sales but inventory will still be key as to whether or not prices continue to fall as they have over the past year. I’m also not confident that low rates will, or won’t stop values from dropping on a longer term basis.

The norm will not be 220 k for a 1200sq.ft. That is absurd.

————————————————–

You should read my above post. You might find it helpful.

“Why so Norm?”

I don’t know, but I’ll definitely be thinking about the why. Thanks.

Why so Norm?

I have heard a lot of comments like Fred’s in the last while. I wonder how interest rates will counteract with the drop he is suggesting??

Can’t blame people for trying to sell for as high of a price possible though…..

Thanks.

Roger,

I’ve made a mistake with yesterday’s numbers. Just sent this update.

Seems I have made an error in yesterday’s update. It should read “19 sales at an average of $274,353.” and not $227,353. Sorry folks.

The average for the week is just under $250. Still a number of sales before she’s over so anything could happen.

At the mid point of the month, we’re showing 157 units sold at an average of $263,670 for April. Actives pretty much stable at 1,431.

I have been following you on Twitter recently. The number of sales that you have been reporting seem pretty good this week. But the average price seems really low. This week might shape up to be another slide in prices.

Appreciate your Twitter daily updates, works for me!

buy if you must, but with the understanding that prices are still on the down slope and that growing inventory will keep making sellers look stubborn for refusing to slash price with all that competition, it sure looks like a buyers market, just not price wise

Cyn_d, Areas 1, 2 and 3 in for starters… Cul-de-sacs, Crescents and down from there. Ideally somewhere with good access to amenities but not necessarily directly adjacent to them. Typically you can’t find the “best” locations in any given neighborhood (these often don’t change hands), but you can find better ones. As mentioned, expect to pay a bit more of a premium for this.

Hear, hear! You only live once… might as well make the most of it. Since I move frequently, I’m certainly guilty of renovating for someone else (a future buyer), but I’m sure looking forward to settling down so that I can buy a long-term house for ME, and fix it up just the way I like.

I’ve learned a lot about my preferences in my various moves, and the most important thing really is finding the right location (MY right location, as cyn_d points out). After that, get a big enough lot/house to accommodate your needs in the foreseeable future. The rest can all be changed to suit. I never really understood that cliche (location, location, location) until I bought a few houses. I thought it was financial advice, which it is, but I think it’s really lifestyle advice. The right location makes your home a joy. The wrong one will grate on your nerves more every day while you’re waiting in traffic, putting up with noise pollution (barking dog? traffic? airplanes? the bar crowd?), or looking at your dead-beat neighbour’s weedy over-grown lawn.

I agree, that is a refreshing perspective. I’ve heard Loc, Loc, Loc before and I’ve wondered what constitutes a good location. Isn’t that completly dependent on the buyer? If location is everything, who is living in all the houses that are not in a “good” location?

And did you hear? Colour is the new taupe…

An interesting and refreshing perspective. One which I generally live by, but feel far less safe sharing lately.

“Don’t let this blog fool you.”

Blogs don’t fool people. People fool people.

My advice to you is don’t let money run your life. Renovate your house how you like it, buy in an area you want to live in, and enjoy life!

Will any of this really matter when you are 85 years old? Will you remember saving 5grand? 10grand? Will your quality of life be better if you own your house and can do as you please? or would you rather rent and ask someone permission to hang a painting? Would you rather a lower rent payment, and instead spend some extra money on good food and clothing? Do you have a family? Do you need a big yard? a garage? Do you want to be close to schools? Bike to work? Close to your church? There are so many variables besides prices and interest rates.

Don’t let this blog fool you. Life is more complex than interest rates and house prices. No one knows the answer to your question, it is a personal question, and it is up to you. Regardless of what ANYONE tells you. A house is only worth what someone will pay for it. Keep your emotions with you, don’t leave them at home. You are not a drone! This is your life!

Interesting about the 2% interest hike and pricing needing to be 20% less to equal payments. I think there will be some people getting a wake up call in the next few years.

Again, thanks guys!

I would do what Peter said, no rush to pull the trigger. April 23 should see another rate cut to .25.

Variable rate will be looking mighty fine!

Interest rates won’t be going up until governments get a handle on deflation. We have seen bankruptcies,falling prices, higher unemployment, less credit, lower profits which I believe has put us into a bit of a deflationary spiral. Governments have thrown money at the problem and if it works it will lead to higher interest rates down the road. 1-4 years? And if it does not work? Hello Japan.

Good luck. Tonnes of selection.

This is a decision that only you can make, and I agree that you should be thinking about long term affordability. If you’re confident that you’ll have a job and income that can carry you, you’re probably okay doing what feels right as Al has suggested.

I am feeling far less bearish in recent weeks. Hopefully I’m not sucking myself in but I do really think that rates are ridiculous right now. To be clear, I don’t think that there’s much danger that prices or rates may rise in the near future, but a mortgage at two percent higher than today’s rates would require a price at 20% lower than today’s price to produce the same payment. I would be looking to make my move while rates are still low. I think Peter has given some good advice on getting yourself pre-approved so you’re ready if you feel the time is right.

Good luck.