Saskatoon real estate week in review: June 21-25 2010
Saskatoon real estate sales for the week matched the pace of the previous week with eighty-three homes trading. On a year-over-year basis sales declined roughly twenty-five percent from the 110 offers that went unconditional during the same week last year.
New MLS® listings grew to 123, up eight from last week to finish higher than the same period in 2009 when 110 Saskatoon home sellers listed their home on the Multiple Listing Service®.
Click the image for a larger version of the graph.
The inventory of residential listings crept up again gaining eleven units over the course of the week to finish at 1427, just eight units fewer than were available at this time in 2009. Most of the gains were recorded in the single-family detached house category, which moved higher to 853 homes while active condo listings fell below the five hundred mark to finish at 495.
I found it interesting that for three consecutive years inventory numbers were essentially the same during this particular week. Of course, in 2009 they were already headed for lower ground. In 2010, they continued to swell taking another three months to reach peak numbers for the year.
Click the image for a larger version of the graph.
Cancelled and withdrawn listings came in at forty-two with twenty-five of those being reprocessed as a new listing the same day they came off. Price adjustments crept higher again reaching eighty-six properties.
The average selling price of a Saskatoon home bounced higher to once again break the $300,000 mark. The six-week average moved up nearly two thousand dollars to $298,951 and gained more than twenty thousand dollars over the same week last year. The four-week median slid lower for the second week in a row losing fifteen hundred dollars to close at $285,000, up just eight thousand dollars from the same time in 2009.
Click the image for a larger version of the graph.
Overbid sales continued to be sparse with just three of this week’s sales recording an above list sale price. The average overbid is heavily skewed by one sale that went over list by forty-four thousand dollars. It was a new house so additional improvements are likely included in the final sale price. Seventy-six of the sales for the week were reported as selling below the asking price by $8,981 on average for a discount of 2.7 percent.
Click the image for a larger version of the chart.
Highlights from the news this week
Canada not immune: Central bank
Debt lessons haven’t sunk in for many
Reading the mortgage fine print
Five things to ask before you sign a mortgage
It may burst your bubble, but buy within your means
A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.
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.
Our Saskatoon home search tool offers MLS® listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.
Norm Fisher
Royal LePage Saskatoon Real Estate
13 comments so far. We'd love to hear your thoughts.
June 27th, 2010 at 10:28 AM
“The average overbid is heavily skewed by one sale that went over list by forty-four thousand dollars. It was a new house so additional improvements are likely included in the final sale price”
Sounds like upselling by a saleperson! “For another 10k we’ll put in granite countertops and stainless steel appliances”. Not overbidding by the purchaser. I think there is a difference.
If the house remained the same for the overbid, then that is “overbidding” to me.
I feel overbidding claims are fraudulent. Can realtors disclose the other bids to cause overbidding? How exactly does overbidding happen without disclosure?
June 27th, 2010 at 11:12 AM
Steven,
I would like to see the list price adjusted higher if the agent intends to report the full selling price of a property where additional improvements are concerned though I expect that there probably isn’t much intent of any kind behind not doing so.
“Can realtors disclose the other bids to cause overbidding? How exactly does overbidding happen without disclosure?’
A Realtor is required to “obey all lawful instructions of the seller” and there are no laws that would prevent a seller from playing one buyer against the other. The buyer has the option to play or walk away.
June 27th, 2010 at 2:29 PM
That total inventory chart is very interesting when looking at the three years. 2008 starts low and ends up quite high. 2009 starts high and ends low. 2010 starts in the middle and ends…..?
Whatever happened to that excess inventory at the end of 2008? Did it get eaten up by the low housing starts last spring? Or are we seeing some of that inventory today? Combination?
June 27th, 2010 at 2:57 PM
Became rental properties?
It’s quite amazing to see a house priced at more than $550,000 is housing 6 male university students…
June 27th, 2010 at 6:37 PM
Doug,
Yes, isn’t it funny? It’s most amazing that inventory essentially ended up at the same place on this particular week three years in a row.
“Did it get eaten up by the low housing starts last spring? Or are we seeing some of that inventory today? Combination?”
Probably a combination of both, plus Cindy’s suggestion of rentals. We’re still a ways off of peak prices and I expect there are some landlords who had hoped to cash in with a quick sale that have been under water since then.
June 27th, 2010 at 10:53 PM
I once bought a condo a day after the property was listed. A couple of hours after submitting my offer, my realtor phoned to say that the listing realtor received one other offer, in case i want to adjust my offer. I asked my realtor if i can find out what the other offer price was? He said no, I just have to guess. My original offer was for the asking price and i decided to bump it up by $4,000. In the end, my offer was accepted. I was happy to get the condo and an extra $4,000 isn’t that big a deal, but I found this to be a frustrating lack of transparency and was left wondering if there even was another offer.
I’m not sure if some kind of disclosure of competing bids to the bidders is a practical solution.
I work in the financial markets where disclosure of bids and asks is a big part of maintaining an efficient market.
June 28th, 2010 at 10:01 AM
“there are no laws that would prevent a seller from playing one buyer against the other”
Norm, if I as a seller used an imaginary buyer to play against an other buyer. What would you say to me? Would you walk on me and lose a commission? Would you report me for fraud?
“I found this to be a frustrating lack of transparency and was left wondering if there even was another offer”
David, I’ve often felt sellers are bluffing about another offer. I’m think I’m gonna start workin’ on a poker face for real estate.
Norm, you won’t mind if I wear sunglasses when I check out real estate? lol
June 28th, 2010 at 10:14 AM
Steven,
“Norm, if I as a seller used an imaginary buyer to play against an other buyer. What would you say to me?”
Absolutely not!
“Would you walk on me and lose a commission?”
Absolutely!
“Would you report me for fraud?”
Probably not. I don’t believe it’s a fraudulent act to propose a fraud.
The agency duty of “obedience” applies to lawful instructions only. Any agent would be foolish to participate in such a scheme as I believe that it would be a fraudulent act. If one suspects they’ve been duped by a bluffing agent a complaint to the Saskatchewan Real Estate Commission would clear things up quickly. When called, an agent must hand over all documents related to any file in question.
I expect such a ruse is more likely to occur in a private transaction where a co-conspirator would not be required.
By the way, disclosing the existence of “other offers” isn’t always in the sellers best interest. One should carefully consider all potential consequences in doing so. For instance, your best offer could be withdrawn and never return.
June 28th, 2010 at 10:49 AM
Total aside, but someone just told me the downtown grocery store has closed already. Anyone know?
June 28th, 2010 at 11:55 AM
Ginger,
I drove by the building yesterday afternoon and noticed the windows were papered over. Lyndon is telling me that he saw a story on the news reporting on the closure of the store about a week ago. Apparently the owner claimed that they were going to be looking for investors so they could make some changes and hopefully re-open. I have also heard that the merchandising in the store was poorly done and the prices were high.
June 30th, 2010 at 8:46 AM
I wonder if rates will come down. 5 year bond is trading at 2.3%. The spread is now over 2%. Banks are making big money.
June 30th, 2010 at 5:52 PM
Also… we always hear all these wealthy Saskatoonians talk about the importance of a down town and west end grocer. Well time for all those doctors, business owners, and politicians, all independently wealthy to put THEIR money where THEIR mouth is and invest in this.
June 30th, 2010 at 6:12 PM
Doug,
There have been some small decreases over the past few weeks but they are pretty tiny in comparison to the changes with bonds.
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