Saskatoon sees record real estate listing activity
Though almost everything that could be said about this topic has already been said, I thought I’d better bring the latest news release from the Canadian Real Estate Association (CREA) to the front page, lest I be accused of covering up the bad news. 
In a press release issued Friday, CREA notes that new listing records have been set in Saskatoon for two consecutive months. May saw new listing activity reach 1,015 units compared to 706 properties that were listed in May 2007. Saskatoon’s total active listings inventory grew to an all time high of 1,154 properties by the close of May.
In an interview with Joanne Paulson of the Star Phoenix, CREA economist Gregory Klump describes recent changes as a “very dramatic evolution of the market.”
“The price increases that Saskatoon has seen are in the rearview mirror,” said Klump. You’re still going to get high year-over-year increases, but they’re going to shrink.
“That reflects the reality that the market is much more balanced than it has been for quite some time.”
Listing activity in Saskatoon and Regina saw the largest year-over-year increases compared to other major real estate markets across the nation, but it follows a trend that other western cities started to experience over a year ago. Nationally, new listing activity jumped seven percent to 67,628 units through May but ballooning inventory levels are causing the biggest problems in Calgary and Edmonton where average selling prices have fallen 2.4% and 4.8% respectively since this time last year.
For reasons that he doesn’t explain, Klump sees prices continuing to “rise at a slower pace,” and notes that CREA is “not forecasting price declines in Saskatchewan.”
Read Joanne’s Star Phoenix story here.
Read the Globe and Mail report here. (Thanks Crikey)
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
14 comments so far. We'd love to hear your thoughts.
May 8th, 2009 at 1:21 PM
long time lurker, first time poster. Question for you Norm;
What is your feeling about Realtors who flip houses. I know of a few who do I just wanted to know an outside realtors opinion. Thanks
May 8th, 2009 at 1:21 PM
Jim,
Hmmm. Interesting question.
My broker is an incredibly smart man whom I have great respect for. I haven’t yet met another person who knows the real estate business better than he does, or many who have as much experience as he does. I once asked him why he doesn’t buy and sell real estate outside of the properties that he’s lived in. He replied by saying, “I’ve never really figured out how I could be in this business for myself, and for my clients, at the same time.”
That has always stuck with me, and like him, I choose to focus all of my “real estate time” on serving my clients.
That is not to say that it’s not possible to serve one’s own interests without conflict with client’s interests, but like Daryl, I haven’t figured it out yet, so I choose not to be involved in the business at that level. I suppose it is possible but I think one would have to avoid working with clients who are doing this kind of work to avoid conflict altogether.
As far as the “flip” is concerned, this word always has negative connotations but there are people out there who approach a restoration with a sense of pride and enthusiasm to do a great job. I have no problem with the idea if one is actually interested in doing a good job.
May 8th, 2009 at 1:21 PM
Hi Jim, I can’t speak for Norm. But I don’t see anything wrong with a realtor buying a house with the intent to fix up & sell, as long as the seller is represented by his own realtor.
Now, if a realtor is buying one of his client’s homes, that is a totally different matter and I would think it would be at least unethical.
May 8th, 2009 at 1:22 PM
What’s with the ongoing sugar coating?
Listings at all time high? Sales can’t keep up?
Yet “You’re still going to get high year-over-year increases, but they’re going to shrink.”
Not only increases, but “high”?
When are they going to admit high listings, up another couple hundred on the market just since the end of May (Norm’s stats till June 13) and with reductions all over, prices are going down.
A claim that’s deceptive, just because prices were up a lot from January to April, before falling in May, so even if prices fall $30,000, they’re still up “year over year”, albeit a lot lower than now (well 10% lower) and even lower than April’s high.
Prices From January 2009 may be up from January 2008 but I bet prices from January 2009 are LOWER than April 2008.
May 8th, 2009 at 1:23 PM
Hah, I’m sure some “expert” was saying the same things about Edmonton and Calgary. Now look at them. Saskatoon will tag along.
May 8th, 2009 at 1:23 PM
Heather,
I’m going to do a little research to see if I can find any CREA comments regarding Edmonton and Calgary, but I also wondered if they’ve ever predicted a drop in prices.
Hopefully people have enough sense to understand that comments from real estate associations are probably biased.
Dan,
“Prices From January 2009 may be up from January 2008 but I bet prices from January 2009 are LOWER than April 2008.”
Given that we saw the average peak in April, I think that’s a pretty safe bet. As I said in the June 2-6 thread, we’ll more likely be in the 275-280 range by then. The trend towards more inventory doesn’t appear to be showing any signs of letting up and Saskatoon housing news is bound to get worse.
May 8th, 2009 at 1:23 PM
So, Norm, seems you think the year will end off with lower average prices than we have now with all the new listings?
May 8th, 2009 at 1:24 PM
Norm,
Great, let me know if anything turns up. Happy belated Father’s Day, hope you got to spend some quality time with your kids this Sunday. :’)
“Saskatoon housing news is bound to get worse” Don’t you mean better? LoL I guess it depends on who you ask.
May 8th, 2009 at 1:24 PM
Jim,
Seems logical to me, based on the principle of supply and demand. Will we actually return to a $275-280 average? I don’t know, but that seems to be the point at which demand began to take some real hits. When I look at the numbers coming out of Edmonton and Calgary, there sure doesn’t seem to be much downward movement and they actually have a far worse situation as far as inventory is concerned.
May 8th, 2009 at 1:24 PM
Heather,
I wouldn’t hold my breath (about finding news that CREA predicted price decreases). I looked around a bit yesterday and couldn’t find any such examples. There are some warnings about drop in unit sales for certain markets but no price warnings. On the other hand, I also could find any statements saying that they didn’t expect prices to fall in Calgary or Alberta.
Father’s Day was indeed very nice. I managed not to do any work.
May 8th, 2009 at 1:25 PM
Norm,
Maybe SK is different because AB has led the way with this real estate boom. SK has AB to compare with, so “experts” are saying we won’t see a slide like AB is experiencing.
Thanks for looking into it though! Glad to hear you did nothing on Sunday… THAT’S why you posted stats on Saturday… smart man.
Captcha: fact Hooker ;’)
May 8th, 2009 at 1:26 PM
Calgary and Edmonton may be more bloated with inventory, but they do sell much more there than here, outpunching their shear population compared to Saskatoon.
The big issue is that if Alberta softens a bit price wise, young people who are mobile can move to Alberta for higher wages, room for advancement and proximity to mountains/BC etc. instead of spending similar, or even more in Saskatoon on a house, depending on area of Alberta. When you consider higher wages and slightly lower taxes, Alberta is really a better deal right now than Saskatoon.
Even if Saskatoon has only local record inventories, prices will need to decrease to combat Alberta’s inventory situation alone. And really, with inventory still growing steadily, prices will have to drop to prop up demand, or else those who actually need to sell their house to move, are kind of stuck.
Personally, if I was 22 and just finished Engineering or Computer Science or something, I’d move to Alberta, find a similar priced place in Edmonton and make a pretty penny more.
May 8th, 2009 at 1:27 PM
Dan,
Those are some good points. Until SK wages do some catching up I’ll have to agree.
May 8th, 2009 at 1:27 PM
Record housing inventory and decreased demand? How could that NOT lead to a drop in real estate prices?!!