Saskatoon real estate week in review: March 15-19 2010
Perhaps it’s the threat of higher interest rates just around the corner; maybe it’s marginal qualifiers eager to beat the mortgage rule changes coming soon. Regardless of the reason, Saskatoon real estate sales continued to gain some traction this week as local agents reported eighty single-family home and condo sales to the MLS, up from sixty-six last week, and fifty-eight for the same week in 2009.
New listings also came on strong as 135 Saskatoon home sellers brought their property to the market, the second highest number for any week this year. That total represents an increase of twenty-two properties compared to last week and a gain of two when measured against the same week last year.
Click the image for a larger version of the graph.
Total active MLS listings (residential) continued to grow, stopping just short of breaking the one thousand mark at 976 units including 555 single-family homes and 367 condominiums. The inventory grew by forty-five properties over the course of the week but still sits roughly thirty percent lower than it was at this time last year when 1,394 residential properties showed an active status on the Saskatoon MLS system.
Click the image for a larger version of the graph.
Cancelled and withdrawn listings came in at twenty-four with thirteen of those homes immediately relisted, most at a lower price. Additionally, fifty-one home sellers adjusted the asking price of their home in hopes of attracting a buyer.
Selling prices continued to swing rather wildly as entry-level condos came on strong. The average selling price of a Saskatoon home this week was $274,625, down nearly $22K from last week when it hit $296,339. The six-week average managed to slip about sixteen hundred dollars on a week-over-week basis to $287,680 but showed a gain of roughly $21,500 when compared to the same week in 2009. The four-week median moved higher by $3,600 over the course of the week to close at $278,603, up $25,000 from the same period last year when it dropped to its annual low of $253,500.
Click the image for a larger version of the graph.
Overbidding activity was consistent with last week with nine of eighty sales going for more than the asking price by an average of $4,250. Six sellers hit their goal number. Sixty-five of the reported sales showed a sale price below list by an average of roughly 2.6% or $7,089.
Click the image for a larger version of the chart.
Highlights from the news this week
Influx of listings set to cool resale housing market
Home sale and prices rise
Frantic housing market ready for calm
Caswell Hill makeover plan takes initial step
Confusion remains over new mortgage rules
Lake Placid revival
More homeowners opting for ‘strategic defaults’
Why Canada avoided a mortgage meltdown
Cash-flush Brookfield set to pounce
A Toronto neighbourhood without children
Home renovators boost retail sales
In Canada, real estate is booming
Inflation surprise gives Bank of Canada reason to hike rates earlier
Negative equity in the U.S. versus Canada
NDP’s dour attack misfires
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.
Real estate geeks can follow our daily updates on Twitter @norm_fisher.
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
7 comments so far. We'd love to hear your thoughts.
March 21st, 2010 at 11:44 PM
I’ve been tire kicking condos, and have noticed that many of the condos for sale in the city aren’t listed through MLS, even though they have agents marketing them (ie – The Berkely on 4th).
Are these numbers indicative of more condos for sale that what is listed in the MLS stats?
March 22nd, 2010 at 4:30 AM
Hi Barry,
Yes, there are more condos for sale than what you see in the MLS stats. Of course, there are also more sales.
March 22nd, 2010 at 10:09 PM
Hey Norm,
It looks like listings and sales are tracking each other pretty well so far this year. It’ll be interesting to see what happens in the next month or so with the new mortgage qualification rules pending. I’m assuming that those that have locked in a rate will be able to shop around for some time after April 19th, so I suppose we’ll know in the few months after that just how many people have bee qualifying with sub-5-year term and variable rates. As good old Mr. Buffett once said (Warren, not Jimmy, mind you), “You only find out who is swimming naked when the tide goes out.”
I had to laugh to myself when I read the New York Times article that you posted above (In Canada, real estate is booming). It’s interesting to get the perspective of a journalist from another country, but some of the facts presented in the article were just flat-out false! A case in point is the following quote:
“Mindful of government oversight, Canadian banks by and large avoided the structured debt products that imperiled many of their American counterparts. They also maintained comparatively tight controls on mortgage lending to consumers. When zero percent down payments on mortgages were widely available in the United States, Canadians were typically required to put down at least 10 percent. American-style amortization periods stretching beyond 25 years were also relatively unknown in Canada.”
Ahem… I don’t think so. Both zero downs and longer amortizations have had their day here, and continue to in the latter case. I’m not sure what percentage of current purchasers are taking out amortizations longer than 25 years, but I’m certain it’s *way* beyond “relatively unknown”.
Congrats on the swank new site design!
March 22nd, 2010 at 10:37 PM
“I’m assuming that those that have locked in a rate will be able to shop around for some time after April 19th”
I’m not sure about this but it’s a good question for my mortgage broker. CMHC doesn’t do “pre-qualifications.” I had assumed that come 4/19 the new rules would be in place.
“some of the facts presented in the article were just flat-out false!”
I don’t believe much of what I see or hear in the news anymore. You only have to be involved in the whole process a few times to realize that you can’t count on the truth.
“Congrats on the swank new site design!”
Thank you.
March 23rd, 2010 at 10:56 AM
I found this article while searching for future interest rates.
Whether you believe housing in canada is in a bubble, a little overvalued, or priced right, this will answer many questions. Grab a snack, cause it is quite long at 51 pages.
http://www.scribd.com/doc/28454918/Canadian-Housing-Bubble
March 23rd, 2010 at 2:40 PM
what do you think about the new land properties without any houses built yet. with the market at a cool down, do you think their will be a lot of activity in buyers for “land to build upon”
March 23rd, 2010 at 3:18 PM
Jen,
I spoke to Riel (TMG mortgage guy) about the exchange we had regarding April 19 and the possibility of pre-approvals extending beyond that date to avoid the new rules. He called a contact at CMHC and this is what we learned. No!
CMHC will insure deals that are officially approved by the close of business on 4/19. A specific property must be associated with those applications. Anything approved after 4/19 including files that are re-opened due to a change in circumstances (income, job change, etc.) will have to qualify based on the new rules.
Doug,
Looks like an interested report. I know what I’m doing this weekend!
Thanks very much.
Jason,
Thanks for the comment. If there is a major slow down in construction it will likely be the city that ends up holding the most serviced land. Builders usually have their ducks lined up so they can give unused lots back (with a deposit lost). It costs Jack & Jill PrivateHomeBuilder a pretty big chunk of change to resell without building. I believe the penalty is $50,000. They’re not likely to commit to a lot unless their certain they can get a house up.
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