Saskatoon real estate: Week in review (June 18-22 2007)
The Saskatoon real estate market continued its hectic pace through yet another week with buyers showing few signs that they’re willing to let up anytime soon. While the percentage of homes selling for more than the asking price was down from the previous week, the average overbid across all Saskatoon real estate areas set a new record coming in at $27,816, up just a smidge from the previous record of $27,770 which was recorded during the last week of May.
The average selling price of a Saskatoon home came in above the quarter million dollar mark for a second consecutive week.
Residential listings gained some traction, outpacing reported sales by 40%. 140 single family homes and condominiums were placed on the market this week, while only 100 homes actually changed hands. At today’s date there are 343 such properties displaying an “active” status on the Saskatoon Multiple Listing Service ® which is a higher number than I can recall at any point this year. Normal MLS ® listing levels for the Saskatoon market are closer to twice that number. With the increased demand we’re currently experiencing I expect that we would need closer to 1,000 Saskatoon homes for sale to bring any balance.
Interestingly, the percentage of homes selling for more than the asking price continued to decline in Area 4 to about 40% and the average overbid was $17,814, which is the lowest number recorded in any area since the week of April 16-20. I know I’ve mentioned before that Area 4 is typically the last area to catch fire when the Saskatoon real estate market heats up and the first area to cool as the market begins to level off. It’s difficult to know if this is a sign of things to come but it definitely does seem that we are seeing a bit of a cooling trend in Area 4.
Notable sales
- East College Park apartment style condo (892’) sells for $195,900.
- Brevoort Park bungalow (912’) without a garage brings $311,000.
- Greystone Heights bungalow (1,432’) which appears to have some nice upgrades and a double detached garage sells $6,000 below list at $303,000.
- Pacific Heights bi-level (950’) on a busy street fetches $242,100.
- Briarwood executive home (3,693’) sells for $789,000.
- Erindale executive home (2,765’) brings $840,000.
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
21 comments so far. We'd love to hear your thoughts.
April 7th, 2009 at 11:11 AM
The Brevoort Park bungalow you mentioned which sold for $311,000 – was that not listed for $229,900?!?!
April 7th, 2009 at 11:12 AM
Indeed it was Marie! Not sure how that got past me except to say that list prices seem almost meaningless today. $81,000 over list is really something notable. Thanks for bringing it forward.
April 7th, 2009 at 11:12 AM
Wow, this really shows how truly unpredictable the market is. I feel awful for buyers trying to navigate these waters for the first time. We were lucky to get a successful bid in early May.
April 7th, 2009 at 11:12 AM
Nice to see you again Daryl. May and June certainly brought some even tougher times for buyers. You guys were fortunate to have found a place when you did. Thanks for stopping.
April 7th, 2009 at 11:18 AM
I have been looking at houses for awhile and dipped my toes in the water a couple of times. While I haven’t gotten anything YET, I can say that it really isn’t as bad as people make out. Yes, if you insist on having the perfect bungalo in the perfect location you are probably up for stiff competition. However, if you are willing to sacrifice just a bit of location and/or quality, you can find something nice with few bidders.
I really think people over-emphasize the value of renovations. Even in this market, you would be amazed what $5K can do as far as flooring and paint go, and I have seen many houses needing little else.
It’s not that bad! Just get out there, stay away from the cream of the crop, put some bids in at asking and you might just be surprised!
April 7th, 2009 at 11:18 AM
Sam, thanks for the comment. There’s no doubt that the cream puffs really draw the most competition.
I have noticed lately that listings are drawing fewer showings and fewer offers. You make a good point that it may be worthwhile to give some of the not so pretty stuff a second look.
I wrote a post back in November titled, “Can’t find a house? It’s time to get ugly” which discussed the potential to avoid competition by focusing on the less desirable properties.
It may be a lot easier to buy something that needs a little care.
Thanks again.
April 7th, 2009 at 11:18 AM
I heard there are still huge advertisement for saskatoon being affordable city but I don’t see much difference in housing price in Alberta and Saskatoon now. I would like to make a request to all the Albrtians think once before investing in saskatoon.If you are willing to have low wages and pay same amount of mortgage then you are most welcome.
April 7th, 2009 at 11:24 AM
Hi Ann, I’m not surprised to hear that these ads are still running. Hopefully, they’ve updated the house picture to something which is more representative of “affordable housing” in Saskatoon. Orginally it ran with an Arbor Creekish two-storey for less than $200,000. In fact, one can expect to pay twice that today.
April 7th, 2009 at 11:24 AM
Hi Norm,
in response to your question on a previous post.
I live in a condo building downtown and rent from a condo owner. My rent will go from $750 to $1080 at the end of august. It’s a two bedroom condo with underground parking. Apparently my landlord has to give 3 months notice on an increase of that size…
April 7th, 2009 at 11:25 AM
Lee,
Wow! That’s got to be hard to take, though $750 does sound below market. I had some friends who lived in the Milroy a couple years back. I believe they were paying $850 at that time including their underground parking. In any case, that’s a big hit at one time.
Thanks again for the feedback and good luck.
April 7th, 2009 at 11:25 AM
Ann, there are large differences in the average housing price of homes in AB and SK. I believe Norm posted the stats recently. This holds true especially for Calgary, I believe. Housing prices are almost double there.
April 7th, 2009 at 11:25 AM
I found Norm’s post:
Average selling price of a home in May, 2007
Vancouver – $591,722
Calgary – $429,298
Edmonton – $357,839
Toronto – $382,689
Saskatoon – $233,917
Canadian Real Estate association MLS statistics.
April 7th, 2009 at 11:25 AM
While we’re busy comparing saskatoon to the major Canadian metropolitan areas maybe we should include population, weekly income, job growth, GDP, etc. Apples to Oranges. You can’t just throw out a fact that Calgary house prices are double saskatoon’s in efforts to trivialize concerns about what’s going on.
J.
April 7th, 2009 at 11:26 AM
Johny,
I think you can “just throw out a fact that Calgary house prices are double saskatoon’s” when someone suggests that there is not “much difference in housing price in Alberta and Saskatoon”
I see your point that we don’t always need to be comparing ourselves to Alberta but you never seem to object when those who are lamenting Saskatoon house prices do it. Why shouldn’t these false statements be confronted with the facts?
April 7th, 2009 at 11:26 AM
I’m not sure that I’ve seen anyone reference another major metropolitan city when lamenting about their saskatoon high-price blues. I know that I referenced Phoenix when explaining that what goes up at this rate must come down, but even your counterpart in Phoenix expressed marked similarities. I suppose I could reference halifax housing prices. Maybe point to their housing market and conclude that the saskatoon housing market will dip.
Ultimately my point is, I get chills and ills whenever the Percy effect is employed to explain the sudden frenzy… which came first, the frenzy before the percy effect, or the percy effect before the frenzy… I have my theories.
I have no motivation here, I can only see so many getting hurt when the dust settles.
April 7th, 2009 at 11:27 AM
Thanks Johny,
“I’m not sure that I’ve seen anyone reference another major metropolitan city when lamenting about their saskatoon high-price blues.”
I wasn’t referring to anything you had said. Carrie’s point was made in response to Ann’s claim (above) that there “is not much difference in house prices between Alberta and Saskatoon.” Seems a fair point to me.
“I know that I referenced Phoenix when explaining that what goes up at this rate must come down, but even your counterpart in Phoenix expressed marked similarities… Maybe point to their housing market and conclude that the saskatoon housing market will dip.”
I think I said then, “I’m only certain of two things; this fast paced market will eventually end and it will produce some casualties. It’s rare that an out of control real estate market makes a soft landing.” I think I would have been a little off topic had I raised it in this discussion.
“which came first, the frenzy before the percy effect, or the percy effect before the frenzy… I have my theories.”
April 16-20 – Close to 80% of residential units reported sold go at or above list price, with an average overbid of $23,403.
April 21 – Star Phoenix publishes “High local house prices are still below national average,” by Dwight Percy.
Always a pleasure Johny.
Thank you for contributing to the discussion.
April 7th, 2009 at 11:27 AM
I think Johny means the effect more than the individual article itself. Which I can vouch for. Many home owners in Saskatoon are licking their lips as prices keep getting higher – why should they worry?
All the investors are coming in, glad that they have enough money to cut off people who make what used to be enough to buy a home.
Seems like everyone has dollar signs in their eyes.
Our salaries are worthless now…
April 7th, 2009 at 11:27 AM
Correct,
I’m talking about the effect that buzzwords and catchy boom talk have on the market and reactionary amateur investors therein. I don’t even know Percy… but I sure don’t like that smug grin he has on his face haha.
J.
April 7th, 2009 at 11:29 AM
I would like to list my house soon. I don’t want to play this bidding war game. As a seller are there any other options?
To the buyers out there, is everyone still automatically adding an unknown $$$ to the list price at first glance?
April 7th, 2009 at 11:30 AM
Saskaberry,
You’re the second seller I’ve heard make this statement today and it feels kind of refreshing. Perhaps we’ll soon find ourselves pricing property at market value again.
As a seller, in seller’s market you pretty much have all the options and there’s no reason that you have to play the bidding war game if that feels wrong for you.
Price your home realistically within its market range and be open to viewing offers as they come in. I think an approach of, “will gladly consider your kind offer this evening” would probably work right now. A couple of days of pre-promotion (internet & emails in the real estate community) wouldn’t hurt to ensure that you have decent traffic right out of the chute. I know this seems “so 2006″ but I think it will work just fine.
I’d love to know how things work out for you. Please come back and tell us. Good luck.
April 7th, 2009 at 11:30 AM
Hi there, my first time on the blog and it’s great. Norm, or anyone… do you know of any real estate investment clubs or groups in Saskatoon? We’re fairly novice at this but have purchased one revenue property a year for the last 3 years. We don’t personally know others that are doing this, other than our best friends who watched us and then bought their first last summer, and we’d like to share ideas and learn from like-minded people.