Saskatoon real estate: Week in review (December 24-28 2007)
All things considered, this was probably a good week for Saskatoon real estate buyers to purchase a home.
On the one hand, active residential listings fell again, slipping below 400 for the first time since the week of June 25-29. Only 8 new listings were offered up for sale. Not a big surprise really. Listing a home doesn’t rank high on most people’s priority list during the holidays. As of today, there are only 184 houses and 164 condos showing the “open” status on the Saskatoon Multiple Listing Service®. The selection of houses is rather poor to say the least.
On the other hand, sellers were eager to wrap up a sale for Christmas and the 37 buyers who did purchase homes were rewarded with greater flexibility than we’ve seen in a while. The average underbid crept over the $10,000 mark for the first time since the week of November 12-16. Most notable however, is the absence of overbid sales. That’s right, there isn’t a single home sale reported above the asking price. Zero. Zip. Nada! This is the only week in 2007 which didn’t produce any overbids.
The average selling price came in at under $250,000 for the first time since the week of November 5-9, largely driven down by an unusually high percentage of condos trading in Area 1. Nine of the eleven reported sales were condominiums and seven of those homes were priced below our average.
I expect that we’ll see listing activity pick up some over the coming week but home sales are likely to be similarly low, perhaps even lower in next week’s numbers. Typically, residential real estate sales reach their lowest numbers in December. If our market behaves in a typical manner, we can expect to see unit sales increase steadily over the first few months of 2008.
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
18 comments so far. We'd love to hear your thoughts.
May 25th, 2009 at 3:33 PM
check out my new home I just paid 450000 in saskatoon.I call it my shed.Plan on putting windows in in the fall.But ill have to wait as all 4 of us are kind of cramped right now.I was thinking of flipping for 550k.Then building condos.I know nothing about it but ive watched a lot of tv so I think Im ready to become just like you guys now.Any advice would be great from the saskatoon high rollers.Any ways heres the link to my new property.http://www.gifttrap.com/images/The_Shed.jpg
May 25th, 2009 at 3:33 PM
Lol! I think you better get a warmer toque and have a few more beers before you decide whether or not to flip. That baby just might be worth 600-650 come spring.
May 25th, 2009 at 3:33 PM
I forgot to mention I have another house just like the one in my last post for 395k but Ill go as low as 350k.
Glad I made ya smile.Little laughter never hurt.Happy Holidays!!
May 25th, 2009 at 3:34 PM
Lol,
Don’t forget the laminate floor
May 25th, 2009 at 3:34 PM
Hi Norm, I just have a question on whether or not you think home prices will continue to go higher in the coming months. Is it a good to buy now or should I wait till february to buy. Any opinion would be appreciated thanks.
May 25th, 2009 at 3:36 PM
Hi Norm,
Can you tell me what the typical agent commission is here in SK?
how many houses would the “average” agent sell in a year?
May 25th, 2009 at 3:36 PM
Missylu,
Roughly 330 residential agents in Saskatoon. Some 4400 homes will change hands through our MLS this year.
It’s a criminal offense for an agent to suggest that a “typical commission” exists. I think that you’ll find there is a wide variety of options available to consumers today.
May 25th, 2009 at 3:36 PM
Thanks norm. Is there any other way you can tell me what I a home seller can expect to pay an agent without committing a criminal offense? I’ve tried looking on many websites and I can’t seem to find the info. If you can help great if not I totally understand.
May 25th, 2009 at 3:37 PM
Sorry missylu,
I don’t mean to be evasive. I can tell you what you could expect to pay this agent.
I charge 5% on the first $200,000 and 2% on the balance above $200,000 when listing a property. Most agents are more or less free to select the services they wish to offer and the fee that they’ll charge for them.
I hope that helps.
May 25th, 2009 at 3:38 PM
That would explain why so many inexperienced agents are popping up all over.I say keep real estate sales to professionals as in any other trade or profession.
Great blog Norm.Appreciate the honesty!
May 25th, 2009 at 3:38 PM
Hi norm,
I was down in good old america over christmas and I came across an article about redfin. I tried searching this on your blog but I got an error when I tried. I know that the hype was has passed so I was wondering if the discussion about redfin has already taken place on your blog. If you could point me to the month that would be great. If the discussion hasn’t taken place let me know what your thoughts are on the model. By no means am I trying to question the commission that agents take in. I am in no position to have an opinion on that as I don’t know a whole lot about the industy. I’m just wondering if the a la carte of services is something that is missing in the market.
May 25th, 2009 at 3:38 PM
On another topic…why so many departures at Point 2? http://newsdesk.point2.com/blogs/newsroom/archive/2007/12/11/point2-technologies-announces-executive-resignations-and-new-leadership-roles.aspx
What’s next for Brendan King?
May 25th, 2009 at 3:39 PM
Geoff,
Thanks for the comment.
Interestingly, Canada’s Competition Bureau recently released a report on competition in the real estate industry. In their report, they suggest that they are satisfied with the level of competition and choices for consumers.
They did express concern that the level of education required to obtain a real estate license may be too stringent in some provinces, and that this might be an impediment that would unduly restrict new entrants to the business.
I’ll be the first to admit that this business is not rocket science. On the other hand, we are, in most cases, entrusted with the client’s largest asset. Many agents don’t have the most basic understanding of what “agency” is and how it should direct their actions on behalf of their clients. Sad that a government agency would take the position that less education would be a benefit. Fortunately, the provincial regulator seems to be committed to continuing to raise the bar in the area of education.
May 25th, 2009 at 3:40 PM
Hey again missylu,
We haven’t had a Redfin discussion here but there are a million opportunities out there to discuss the pros and cons of the model. I am very open minded about these types of brokerages but unfortunately, most seem to come and go.
You may recall that Zillow opened a couple of years ago to big fanfare. It is founded by Richard Barton, the gentleman that successfully put the travel agent out of business. Barton had plans to do the same thing in real estate. He has since changed his strategy after realizing that “real estate is different” from travel. They now provide advertising services to brokerages.
Our provincial real estate act has just recently been changed to accommodate alternative methods of compensation. This will likely open the door for a la carte service providers. Until recently, a real estate brokerage could only collect a fee from a “completed trade in real estate.” Now, a brokerage can have an agreement to provide more limited services for a negotiated fee.
I have done little so far to explore the possibilities of that, but I plan to do so this year. Just not sure where it will go at this point.
I have, in the past, experimented with a limited service model charging a flat fee for a fair amount of assistance on the marketing and negotiating end. Few sellers were able to produce a willing buyer and the incidents of success were few. It was frustrating and it cost a lot of money to experiment with it, but again, at that time I could not charge for those services unless a sale resulted.
I have no inside knowledge about what went on at Point2 or where Brendan King might end up. I’m pretty confident that both will continue to be successful. Brendan is a sharp guy.
May 25th, 2009 at 3:40 PM
Norm,
Thanks for your comments. I always love to hear your view on things. I personally believe that there is potential for an a la carte type service here in sk. I fully enjoy doing research on the internet at my own leisure. While I may not be interested in doing the negotiating and paper work involved in the sale of a house, I would be totally comfortable searching the mls site to find a house on my own. On the selling side I would also be comfortable showing my own house but not as keen to do the negotiating and paper work. This type of service to me seems like a nice balance between fsbo and a full service agent. I want to reiterate that I am in no way trying to downplay the value of a full service agent. I just think there is a market that is being overlooked….the 20-30 something web savvy buyer.
Also…. Would a limited services type of brokerage still be able to list on mls?
May 25th, 2009 at 3:41 PM
missylu,
There are no rules which prevent a brokerage like that from placing a property on the MLS. Keep in mind that an MLS is generally a system used by agents to inform each other of available inventory. MLSOnline, for instance, is not “the MLS.” It’s a website which is fed data from each local MLS. One of the Canadian Real Estate Associations’s “Pillars of the MLS” requires that an MLS listing has an offer of compensation attached to it.
May 25th, 2009 at 3:41 PM
Well anyone who creates a blog and becomes a success is a professional in my eyes.Says alot for the knowledge you have gained with your experience,Im sure Norm.Being an entrepreneur for 2 years now I understand the work that is involved in dealing with all walks of life and BELIEVE ME ITS TOUGH.Keep up the great informative blog and if I ever get enough money to purchase I will be contacting you.
Peace Out!
May 25th, 2009 at 3:41 PM
Thank you Geoff!