Saskatoon real estate: Week in review (January 7-11 2008)
The inventory of Saskatoon real estate listings saw some growth this week climbing to 393 residential units including 177 houses and 172 condominiums. Lackluster sales, combined with the strongest listings we’ve seen since the week of November 19-23 were largely behind the increase in the number of available homes.
Some agents proclaimed, “It’s starting to happen again” but the speculative statement is not supported by the numbers. Granted, the average overbid did come in above the $8,000 mark, the highest number since late November, but only three properties managed an above list price sale so that’s hardly evidence of the market ramping up for boom 2.0. The average underbid was almost as high at $7,173 on 32 of 38 Saskatoon homes which were reported sold this week.
I will say though that there seems to be another large spike in inquiries from out of province investors. I’ve handled at least two dozen telephone inquiries this week, and as many emails from people expressing interest in buying Saskatoon homes. “Fix and flip” are the buzzwords of the week. Those interested in the fast buck that a booming market can deliver should be aware that the risks are considerably higher and the potential rewards are far smaller than they were this time last year. One wrong move and you lose your shirt! Some that bought at the tail end of the first frenzy are still losing money today. RBC released their provincial outlook this week and referred to house prices in Saskatchewan as being “considerably out of whack with the underlying fundamentals.” Affordability should be the new buzz word as we move forward.
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.
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Norm Fisher
Royal LePage Saskatoon Real Estate
10 comments so far. We'd love to hear your thoughts.
May 22nd, 2009 at 3:13 PM
What are your thoughts on private sale homes in saskatoons market?
May 22nd, 2009 at 3:13 PM
Rob,
Theeeey’re great!
I’m not sure what you mean.
May 22nd, 2009 at 3:13 PM
As a realtor do you show them to your clients and do you think it is a good option to sell a home privately? Are clients scared to purchase a private sale home?
May 22nd, 2009 at 3:14 PM
Hi Rob,
1) I would have no problems showing one to a client and it’s my understanding that agents do show them often.
2) It is a good option for some, not so good for others.
3) Many buyers don’t like the idea of having to negotiate directly and are pleased when an agent offers to assist with this. Others are completely comfortable doing it on their own. The right personality can do very well negotiating directly.
May 22nd, 2009 at 3:14 PM
*sigh*.
I just came home to find a notice from my landlord that a surveyor will be in my apartment tomorrow.
Norm, can you confirm my suspicion — that this means the property is either on the market or is being sold?
I just moved in last summer: haven’t been here six months. And the last place I was in went condo, too.
It’s not the lack of ‘affordable housing’ that bothers me: I teach at the university, so I can afford more than I pay here. But it’s the lack of security of tenure for tenants that drives me nuts: I don’t want to move every three months, and there’s absolutely no way to be sure that the next landlord won’t sell before I’ve unpacked my bags.
May 22nd, 2009 at 3:14 PM
jrochest,
A surveyor? I couldn’t say what that means but it strikes me as strange that a surveyor would need access to your suite. You sure it’s not an engineer? That might be cause for concern of a conversion. Good luck.
May 22nd, 2009 at 3:15 PM
Nope, it’s a “building surveyor”, according to the note.
I’m worried that they’re selling. Thank god I didn’t recycle the moving boxes.
May 22nd, 2009 at 3:15 PM
Jrochest,
I’m sure that a survey is a standard part of the conversion process. I’m just surprised that they need access to your suite. I’m not real familiar with the process, but I do know that a conversion also requires a visit from an engineer who is familiar with building codes.
Do you care to tell us where you live? If I can learn anything which isn’t covered by confidentiality rules, I’d be happy to pass it on.
Do let us know what you learn, please.
May 22nd, 2009 at 3:16 PM
Sorry, Norm — I didn’t check back to this thread!
According to the guys doing measurements themselves (there were two of them) “yep, 99% of the time a sale is what we mean”. My dad was an appraiser for years, and that wasn’t what they were: an appraiser will do stuff
I’m at 704 8th St. East. It’s a 20 unit building, with nice big units (1,000 sq feet, two levels, 2 bath 2 bedrooms). It’s prime for conversion: great location and good sized units.
By the way, I checked the commercial/industrial listings on the ‘commercial’ wing of the MLS and *man* are there a lot of those little three-story walk-ups listed. Not mine, at least not yet.
May 22nd, 2009 at 3:16 PM
Hmmm. Yes, this sounds like it could be an effort to sell. There are a many for sale because they have commanded such a ridiculous dollar over the last year. You can bet though that there aren’t very many buyers for them, at least at the price people are asking.
With any luck, your landlord will be totally unrealistic and it will never sell.