Saskatoon real estate: Week in review (March 26-30 2007)
The average selling price of Saskatoon homes topped $200,000 for the third consecutive week.
Sales reported to the Saskatoon Real Estate Board over the past week averaged sale prices of $210,804, up over $10,000 from the week before. This is the first week since I started the “Week in review” where the average list price exceeded $200,000.
The percentage of homes which sold at or above asking price was 64%, a number which seems to be fairly typical over the last several weeks. Area 5 was the clear winner in this category with about 80% of homes reported sold selling at or above their asking price.
The “average overbid” in case where a property sold above asking price was almost the same as the previous week’s number at $14,076.
Total active listings of single-family homes and condominiums numbered 226 which is a marginal decrease from the week before.
Some of the more notable sales include the following:
- The typical Lakeview “apartment style condo” breaks a new record with a 2 bedroom unit selling at $150,500.
- 1,300 square foot town house in University Heights goes for $30,000 above asking price at $245,000.
- 950 square foot bungalow at Cumberland and College brings $265,000.
- 1,170 square foot bungalow on a busy Lawson Heights street fetches $290,000.
- 1,040 square foot bungalow in Mount Royal sells for $204,000.
- 1,160 square foot Fairhaven bi-level finds a new owner at $240,000.
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
16 comments so far. We'd love to hear your thoughts.
April 3rd, 2009 at 4:18 PM
Hi Norm,
I know you’ve had similar questions before, but I was just wondering if you had any tips for first time buyers looking to get into the market for the first time? We’re planning to start looking within the next few weeks, but as an avid reader of your blog, I have to say I’m feeling pretty discouraged when I hear statistics telling us that $200,000 – which to us is a large sum of money, and the maximum we’re comfortable paying, may not even buy us a home in an area we feel safe in. We are not interested in condos, but are we to believe this is our only choice at this point?
Thanks in advance.
April 3rd, 2009 at 4:18 PM
I agree with the last comment made. It’s gotten to the point where people of modest means have been squeezed out of the market, unless you want to take your chances in a cheaper property in a dangerous neighbourhood. Only a six-figure household income can afford a decent home in a decent area; for me, that dream is now gone forever.
April 3rd, 2009 at 4:19 PM
I agree completely. At least in other markets (Calgary), higher salaries make an expensive house relatively affordable. In Saskatoon it will take a few years for wages to catch up to the housing market. Eventually the only people that can afford to buy a house will be people coming from outside the province. We can’t even get into a new condo development because outside investors are buying everything before they get to market.
April 3rd, 2009 at 4:19 PM
I have to say I am empathetic to first time buyers. I just purchased a home and had I not had money from my previous home I might not have been able to buy in this market. Who would have thought that $200,000 in Saskatoon wouldn’t be enough to buy a decent home.
April 3rd, 2009 at 4:19 PM
Wow. I hardly know what to say. As someone who is involved in the business every day, I think I have some appreciation for what you’re all going through, but I’m afraid I have little to offer in terms of solid advice that might have much effect for you.
Nobody really saw this coming or imagined that things might get this out of control.
There’s one thing that we should all do; write our MLA an email and insist that the province discontinue the ridiculous “come to Saskatchewan” campaign. Or perhaps they could rework the message to more accurately reflect what’s going on. “Come to Saskatchewan and buy up our home’s so you can kick the residents of our cities to the curb, price them out of their homes, force them to live in substandard housing which you’ll likely neglect until it falls down around their ears, while they pay you outrageous rental rates.”
I know these tips are probably not going to knock the ball out of the park, but some might be helpful. http://www.teamfisher.com/blogs/norm_fisher/archive/2007/02/28/tips-for-buying-a-home-in-a-hot-saskatoon-real-estate-market.aspx
Other things that come to mind.
Shop the private market. There are still some good deals to be had, but you must be fast. Best results will likely come with the assistance of an experienced agent.
Print some flyers and hit an area that you like where homes are still somewhat affordable.
Run some classified ads, “Seeking a home.”
Work your personal network. Talk real estate with everyone you know. They all know people who are thinking of selling. Those prospective sellers are more likely to be attracted to the thought of “saving a commission” than they will be to taking full advantage of the market.
Anything that you can do to get to property before it goes on the market will work to the advantage of the buyer.
If you happen upon such an opportunity, be realistic and fair in what you offer. I’m going to list a property tomorrow that has been lingering out there for months. Many people have heard about it “through the grapevine” and called my client. Though it’s an excellent home in a decent location, nobody has made her what we would consider a decent offer. They’re all trying to buy it $20,000 under market. That’s not going to work, but you may be able to snap something up at fair market value rather than paying $30,000 over asking price.
Focus on “solid” as your main criteria for the condition of the property. Ugly houses attract less attention. Paint and carpet can go a long way to improve a property.
Good luck!
April 3rd, 2009 at 4:20 PM
Carrie, it must be feeling good to have left the field for a sideline view. Congratulations again. Seems your one of the fortunate few.
April 3rd, 2009 at 4:20 PM
Reach you MLA here. I’ll be writing mine today.
http://www.legassembly.sk.ca/members/members.htm
April 3rd, 2009 at 4:21 PM
What about some of the smaller communities like Clavet, Allen, Aberdeen, etc? I don’t work these communities actively but I understand prices in some of them are still significantly lower. The drive sucks, but these places will likely do well in the coming years provided things continue to go nuts here.
April 3rd, 2009 at 4:21 PM
I honestly cannot believe what is happening in the Saskatoon housing market, its insane. I hear alot of people talking about the low supply of quality homes, and how this along with a raging demand is driving up prices, but I haven’t heard anything at all about realtor salaries. Are they rising alongside the skyrocketing home prices or is the volume of property being sold putting a damper on their incomes.
April 3rd, 2009 at 4:21 PM
Mike, while inventories are substantially lower than normal, listings are actually up this year over last. Further, a higher than normal percentage of listings are successful in selling. This would lead me to speculate that incomes are likely higher as a result but I can tell you that many agents are finding it a real struggle to earn an income. If you are fortunate to bring properties to the market you are almost guaranteed a pay check. If you’re primarily working with buyers it can be a tough slug. Almost every offer you write will be met with competition and sometimes the odds are as bad in 1 in 15. I’ve spoken with agents who have written 20+ offers this year and haven’t succeeded in putting a transaction together. For the past number of weeks the days have been very, very long.
April 3rd, 2009 at 4:22 PM
Thanks for the tips Norm. It’s hard to focus sometimes on buying objectively, when there is so much hype around Saskatoon’s crazy market.
At first, we were really happy to be transferring to Saskatoon. Now, it’s a big source of frustration in our marriage, and the thought of buying a house I don’t even really love for $275,000 makes me want to throw up. It’s really scary.
Keep up the blog. It’s great.
Sad, worried buyer in Regina
April 3rd, 2009 at 4:22 PM
Sad and worried, funny you should mention feeling like “throwing up.” I was just telling one of my colleagues that I was driving home one recent evening after completing a transaction for a seller and I’m certain if I had pulled over and opened my door I could have chucked. I can only imagine how it must feel for buyers to face these frustrations, over and over.
I’m sure things will be looking up when you’re both together, in a home. It’s probably important not to make “lovin’ it” the main criteria right now. As long as it’s something that will be marketable in the future, you can always trade out when the market finds its brains again. Everyone will feel better when you know where home is, even if it’s not perfect. My best to you and your spouse. Good luck out there.
April 3rd, 2009 at 4:22 PM
re: outsiders running up prices
Norm, do you have any stats about who’s buying in Saskatoon? I’m sure there has been more investor activity in Saskatoon lately, but I assume that by far the majority of buyers are people who live and work in Saskatoon.
And speaking as “big bad BC investor” I paid undermarket for my Lakeview condo, so you can’t blame me for the price runup.
April 3rd, 2009 at 4:23 PM
sdude, I wish there were some solid stats on investor activity but I know of no source were I can obtain those numbers. You are correct that a lot of the activity is from locals and other buyers who wish to own a home in Saskatoon. I think what’s frustrating to these buyers is that the investors do seem to have deep pockets and they often show up to bid on the lower priced inventory that is most attractive to the entry level buyer making it very difficult for them to win in those situations. It seems to me that investor competition is much more of a factor at this level than it would be in the “move up” type of homes.
April 3rd, 2009 at 4:23 PM
Hi Norm, whats happening in saskatoon makes me sick to my stomach too! Its so hard for first time buyers to get into the market now and have something to call their own. Just reading your second last comment and wondering what made you so sick you could’ve pulled over and thrown up. You said you just completed a transaction for a seller, doesn’t that mean you just made a nice commission? Why would you want to throw up? Was it the price the house went for? Some outrageous price no one would have even imagined two years ago? Greedy sellers maybe? Desperate buyers?
April 3rd, 2009 at 4:23 PM
Frustrated,
The sellers are a wonderful couple and I was delighted that they had done so well. They scraped together a down payment when they bought the home and I remember them fighting to get their mortgage approved. This sale will go a long way to get them started towards building a little wealth. They practically danced before my eyes and it felt good. I enjoyed every single second of it.
On my way home, I was thinking about the fact that I had just sold them the home last August. That evening, it sold for 64% more than they paid for it then and 20% higher than the last sale of a similar home. I was struck by how totally out of control the market is. I wondered if this same nice couple would even have a chance if they were buying their first home now. I can’t help but wonder if those buying now are making a mistake. At the same time, I’m reluctant to suggest that people hold off. It’s unsettling to feel so uncertain about a market which has been more or less predictable as long as I’ve been active in it.
I don’t see a big upside to these increases, except perhaps for those who are leaving the area. If you’re moving around within the city you’re not going to gain anything. Those who own a home have seen their net worth increase, but what does that really do for you? I suppose it creates an opportunity to borrow money and that may create some good opportunities for some. Others will end up buried in debt with little to show for it. Seems to be the way it has worked out in many other boom markets.
Give me back a balanced market, or even a marginal seller’s market where property values see some increase pretty much every year, listings sell in 30 days or less, buyers and sellers engage each other in an earnest negotiation and buyers do their due diligence to ensure that they’re not buying someone else’s problems. Ahhh, memories.
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