Condos purchases have increased substantially in recent years as the cost of housing has moved higher. Just ten years ago, condo sales accounted for roughly 16 percent of Saskatoon’s MLS® housing market. This year, condominiums account for roughly  27% of all residential resale activity on the Saskatoon multiple listing service®.

According to the Real Estate Insurance Exchange, a private company formed to provide errors and omissions insurance for real estate agents in several provinces, the majority of problems that arise in a condo purchase fall into four areas that they call the four P’s.

The four P’s are Pets, Parking, Payments and Paper.

When it comes to pets, it’s extremely important that all parties to the transaction are aware of the rules of the condo corporation. Don’t let the fact that the current seller has a dog or a cat give you comfort that you can bring yours. In some cases, grandfathering clauses allow current owners to have pets but prohibit new owners from bringing them. Some complexes have restrictions on certain breeds, or even size restrictions that you’ll want to be aware of if you plan on bringing or acquiring a pet in your new condo. A careful review of condominium documents, or a chat with the property manager should clarify whether or not you can bring your pet to you new home. In either case, request a copy of the condo corporation’s per policy in writing.

As far as parking is concerned, you’ll want to be sure you understand if it’s included with your unit, and if so, exactly where the parking stall is located. Is it assigned, and if so, by whom? Is the parking stall titled, and will you have the right to transfer it to a new owner when you’re ready to sell. The estoppel certificate should detail what rights you have to exclusive use of parking facilities, but occasionally we’ve seen estoppels that don’t address parking. Insist on having your parking rights detailed in that particular document.

The third P stands for payments. In this area, buyers or sellers may be confused about exactly what is included in the monthly condo fee. For instance, the buyer may be led to believe that the condo corporation covers electricity costs for each unit when they’re not covered. Buyers may also be taken by surprise regarding special assessments or one-time fees that are levied against unit owners, usually for the purpose of completing large and expense improvements that haven’t been provided for in the budget. Special assessments are normally known about in well in advance of being issued and a thorough review of meeting minutes can be a great way of learning about them when you’re considering a purchase. The estoppel certificate also contains information on special assessments that have been proposed or passed by the board.

Finally, the fourth P stands for paper. This is the stack of documents that a buyer will be provided after their offer has been accepted. Under the current legislation, a buyer has either five days or ten days to review the paper, depending on whether the unit is new, or a resale. At any point during the allotted time, they may rescind or withdraw their offer to purchase based on any information contained in the documents. It is the buyer’s responsibility to conduct their own due diligence and insure that they are aware of what they’re buying. Remember, you’re not just purchasing a home; you’re buying into a corporation that most typically has many owners. You’ll want to understand the by-laws and rules of the corporation, and you’ll want to have a good understanding of the corporation’s financial health. You will, after all, be responsible for some portion of it moving forward.

Thanks for watching. If you have questions about condos or any other Saskatoon real estate matter, feel free to give me a call at 306-241-6676, or drop me an email at norm@teamfisher.com.

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.

Norm Fisher
Royal LePage Saskatoon Real Estate

The City of Saskatoon announced Thursday that the developer had met the December 2 deadline to pay the balance of the $5.2 million purchase price of “Parcel Y” at River Landing on the south edge of Saskatoon’s Central Business District. A cheque in the amount of $4,990,494 was received at city hall and documents required to facilitate the transfer of the land to Victory Majors had been provided to the developer.

Victory Majors Investments must now complete the title transfer, advise the city of a construction start date and then complete the first phase within 18 months. The developer has previously indicated that a three-year target is realistic for completion of the entire project. During the November 1 announcement that River Landing Village would move forward, Victory’s Kay Nasser indicated that the project would be built to the specifications previously approved by city council.

A look at River Landing Village is available here.
Learn more about the Central Business District of Saskatoon 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

According to a story on the Star Phoenix website, “An agreement is now in place to develop the city’s most coveted piece of riverfront land with a new deadline and promises that financing for the megaproject will be available soon….Lake Placid CEO Michael Lobsinger said the agreement for the sale of the land paves the way for the company to secure financing.”

I’m totally confused. Here’s why.

On April 12, council voted to reopen negotiations with the developer and to conduct an independent audit to determine if Lake Placid has sufficient financing to complete the project.

On May 25, following what Mayor Don Atchison described as “the most due diligence that the city has done on any land sale,” city council, sitting as an executive committee, reached an agreement on price with Lake Placid.

The story that ran in the Star Phoenix the following day included this bit of text, “We’re ready, willing and able now to proceed with the $200-million project,” Lake Placid CEO Michael Lobsinger said Tuesday. “We have financing in place . . . and are ready to move dirt in June or July.”

Under the new agreement Lake Placid has until November 1 to provide documentation that between $50 million and $60 million dollars in financing is secure.

Huh?

All of our Lake Placid posts are 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.

Norm Fisher
Royal LePage Saskatoon Real Estate

Star Phoenix writer David Hutton is reporting that “City council, sitting as an executive committee, made the decision in private Tuesday afternoon to advertise the land sale before it was announced at the evening council meeting. The sale still requires the blessing of city council on June 14 because the purchase is for less than market value.”

Recent appraisals on the land suggested a market value of approximately $11 million. Lake Placid had previously purchased the land for $4.8 million but lost it to the city when they failed to meet payment deadlines in October of last year.

On March 22 of this year, Lake Placid CEO Michael Lobsinger appeared before council indicating that he had formed a partnership with Dr. Karim Nasser and that financing had been secured to complete the $200 million dollar River Landing Village previously approved by council.

In mid-April, council agreed to enter into negotiations with Lake Placid subject to an independent audit to ensure that adequate financing was in place to complete the project.

Council will formally vote to approve the sale at the June 14 council meeting after hearing from anyone who might be opposed to the sale. Lobsinger indicates that he’s “ready to move dirt in June or July” and believes that the project can be completed in 36-months.

Read more from David Hutton’s report 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.

Norm Fisher
Royal LePage Saskatoon Real Estate

2nd Avenue Lofts in downtown Saskatoon

Star Phoenix reporter Dave Hutton says that the City of Saskatoon is reviewing downtown housing incentives in hopes of finding better ways to attract new residents to the area.

Over nearly a decade, the city has provided $4.8 million worth of tax abatements to people buying homes in various condo projects. Dave reports that this program has led to over $80 million dollars worth of re-development in eleven projects including the 2nd Avenue Lofts, the King George and the Rumley Distinctive Lofts. Apparently, the program has produced weaker than expected results with the total downtown population growing to just 4,200, well short of the city’s goal of 10,000 residents.

City planners are now looking at incentives that would more directly benefit developers.

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.

Norm Fisher
Royal LePage Saskatoon Real Estate

There are two major questions that still need to be answered.

1. Does Lake Placid have sufficient financing to complete the project?

City administrators will appoint an independent auditor to undertake a due diligence process to ensure that the dollars are available.

2. Can the two parties agree on a price?

Lake Placid had previously agreed to purchase the land for $4.6 million dollars. That deal fell apart in October of last year and the developer has asked that it be reinstated. Two professional appraisers have recently been done on the land. One suggested a value of $10.4 million and the other came in at $11.6 million.

City administration is expected to report its finding to council by May 25.

Read David Hutton’s story from the Star Phoenix here.

Saskatoon, join us on facebook for an opportunity to win a free MacBook.

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.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon city council had been preparing for another request for proposals on the land but on March 22 Lake Placid CEO Michael Lobsinger and a new partner, Dr. Karim Nasser appeared before council indicating that funding is now available and asking for reinstatement of the previous agreement. Council will likely vote on Monday and reach a decision on whether or not they will enter a negotiation with the developer.

Lobsinger and Nasser have indicated that they are seeking reinstatement of the previous agreement and have suggested that an interest penalty for late payment would be appropriate. They’ve also stated that they will not submit a proposal for the land if the city chooses to reopen requests for proposals.

The 2.43-acre site on the riverbank in Saskatoon’s Central Business District is intended to become to primary anchor at River Landing, and currently its use is restricted for a hotel, condominiums, street-level retail, a public gathering spot and parking. Lake Placid had proposed a $200 million development that met the requirements.

The Star Phoenix coverage 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.

Norm Fisher
Royal LePage Saskatoon Real Estate

In a letter to the city, the developer requested an extension to June 30, 2010. City manager, Murray Totland will recommend to city council on Monday that the extension be granted.

Read the Star Phoenix story 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.

Follow our daily updates on Twitter @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Dear Norm,

“The legislation needed to move forward with two of the biggest private developments in the province, both slated for downtown Saskatoon, was passed this week.”

Star Phoenix, May 02 2009

We have very exciting news! We are now offering the Residences at River Landing Village for sale! For those of you that have reserved a unit, this is your opportunity to make that unit yours with a 10% deposit. If you have not reserved a unit we encourage you to visit our sales centre, as we have many great suites still available. Please call Richard or Gail at (306) 683-4350 to make an appointment.

As you may know, we have experienced delays due to the current land titles act. As you can see in the quote above from the Star Phoenix, we have overcome these issues.  In simple terms, the Government is going to allow multiple strata’s (owners and users) on a single title (parcel of land). We are very excited about this progress, and we will begin construction as soon as these changes are complete.

We hope to hear from you soon and encourage you to visit us, as suites are selling quickly!

Sincerely.

Lake Placid River Landing

The River Landing Village website 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.

Follow our daily updates on Twitter @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Assuming that the executive committee’s recommendations are approved by city council at its April 21 meeting, certificates for conversions will not be granted when vacancy rates fall below 1.5%, as measured in Canada Mortgage and Housing Corporation’s Rental Market Outlook reports. The most recent report pegged Saskatoon’s apartment vacancy rate at just 0.6%. If approved, the new policy will not be applied to the applications for 14 buildings that are already in the queue for approval.

Key to the sudden shift seems to be a submission from Dr. Ryan Walker, an urban planning and geography professor at the University of Saskatchewan. Walker, with the help of colleagues from across the country made the case that diminishing supplies of rental housing will lead to further labour shortages in “key worker occupations.”

Read the Star Phoenix story 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.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Few would disagree that this market is extremely tough for renters and it would be difficult to make a case that Saskatoon renters don’t need some help right now. Is rent control the right way to do that or does such legislation ultimately lead to greater harm in the rental market?

Here are some points gleaned from a policy paper written by William Tucker, author of “The Excluded Americans: Homelessness and Housing Policies. Please refer to the complete document to examine the evidence in support of his position.

• Rent controls cause frustrated property owners to sell and redirect investment dollars to a multitude of other investment opportunities that exist in the free market, ultimately reducing the supply of rental housing.

• Rent controls produce excess demand, which further reduces the stock of rental housing for those who need it most.

• Rent controlled housing tends to come off of the market and stay off of the market forever. Renters just don’t move.

• Rent controls create closed communities, which excludes newcomers from entering the market.

• Rent controlled housing tends to fall into the hands of middle-class professionals, not the poor.

• Rent controls provide an incentive for landlords to neglect property and tenants.

• Historically, vacancy rates are significantly lower in rent controlled areas than they are in free and open rental markets.

• Median rents tend to be higher in areas with rent control than in areas that aren’t controlled.

• Rent controls reduce the quality and quantity of housing available to renters.

Standard supply-and-demand theory predicts that any price controls, including rent controls, will produce an excess of demand over supply–an economic “shortage.” There is virtually no disagreement on this premise. In a survey of 75 of the world’s outstanding economists, J. R. Kearl and his colleagues found nearly unanimous agreement on the proposition: “A ceiling on rents will reduce the quality and quantity of housing.”

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

A tenant living on the 12^th floor writes, “We got a package in the mail last night with the price and upgrades they are doing. Ours is priced at $315,888.09 – we have 30 days to buy and if we buy before April 10 we save a whopping 2000. This includes a surface parking spot as well. Sounds a little (alright a lot) steep for this place. They are planning on “gutting” the suite – replacing plumbing fixtures, kitchen cabinets, flooring, windows and appliances and upgrading the electrical service to the building and each suite. Replacing the air chiller, moving to in-suite laundry and upgrading the elevator(s).”

I love the .09 cents thing.

According to another tenant residing of the 17^th floor, it will set you back considerably to move up five floors. He states that his unit is offered to him at $351,502.32.

Let’s assume that the gentleman on 17 is interested in purchasing this property and he coughs up a 10% down payment and mortgages the balance. At 5.1% over 25 years, and assuming condo fees of roughly $290 per month and taxes of $200 (a guess, but probably somewhere close), he’ll have monthly payments totaling $2,385.13. An annual income of $95,000 will be required to qualify. Thankfully, we have 40-year mortgages that allow him to qualify with just $82,000 in annual income.

Average annual income of a Saskatchewan resident – $38,636.

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

“The decision was that the court is not interfering with city council’s decision. The application to set aside the decision approving the condominium plan was denied,” said Andrew Mason, lawyer for the Milroy tenants. Mason presented his case before Court of Queen’s Bench Justice Mona Dovell on March 12 arguing that council did not correctly interpret or apply provisions in the provincial Condominium Property Act which gives municipalities discretionary wiggle room to deny applications based on low rental vacancy rates. The latest Rental Market Report released in December by Canada Mortgage and Housing Corporation pegged the vacancy rate in the area at just 1%, and at .6% across the city of Saskatoon.

The Milroy Apartment tenants will now have to decide if they are willing to bear additional costs, which would have to be incurred if they choose to appeal the court’s ruling.

The City of Saskatoon has agreed to undertake a review of its condominium conversion policies and city administrators have already brought a proposal of potential changes forward. The administration will present the court decision to the city’s executive committee on March 31, and according to city solicitor Theresa Dust, a policy debate will likely ensue at the committee’s April 14 meeting.

Read the story from today’s Star Phoenix 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.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Andrew Mason, the lawyer representing the group of tenants who are opposing the decision argued that city council either misinterpreted the provincial legislation that governs condominium conversions, or ignored it.

Bill Davern, legal council for the City of Saskatoon maintained that council has jurisdiction to make the decision without interference from the courts, that they “fairly considered” all factors which the law requires them to consider, and that the decision to grant the application was “not unreasonable.”

Davern told Justice Dovell that 21 additional applications for conversion projects are waiting for approval and that if she decides that the courts should have the final say in this instance that it would open the door to future actions.

“I don’t know whether the court, with all due respect, is properly equipped to do that.”

Justice Dovell reserved her decision and promised to deliver a judgment as soon as possible.

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

If you think it’s a hot debate now, rest assured that things are about to heat up.

Council passed a motion on Monday, which essentially puts 21 existing apartment building conversion applications in limbo. Gauthier advised council that a new report would be completed for its March 17 meeting, outlining the current situation and possible policy changes which could be used to regulate condo conversions. Another report, recently brought forward by city administrators was tabled for later discussion following a court date on March 11 when tenants of Saskatoon’s Milroy Apartments will argue against the certificate of approval which was issued on that property. Mean time, no conversion certificates will be granted and those which are already in the hopper would be dealt with in accordance with any new policy council might choose to adopt.

Dealing with a steady flow of angry tenants and concerned citizens can’t be easy. I’m guessing that we’ll have some pretty vocal investors on our hands as we move forward from here. Tens of millions of dollars have been invested and those investments were made with an end goal in mind; conversion and resale.

It’s easy to see valid points on either side of the argument. Displaced tenants have few options and promising them that “the market” will eventually work its magic is of little comfort when you don’t know where you’ll be living in thirty days. Free market proponents will argue that there are major benefits to be realized through conversions. Preventing these units from reaching the resale market limits supply in an already stressed market and puts further pressure on prices. Ultimately, that hurts the rental market as well. It’s a real catch 22.

The complexity of the issue can’t be overstated. At the end of the day, the math is fairly simple. Demand exceeds supply in both the rental and the resale market. We need more property in both arenas if we’re going to see any relief. Development of new rental property is the only solution that serves everyone and it needs to happen fast. Free land anyone? I suspect the city may be open to your proposal.

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

The original plan was to create “luxury condo units,” but skyrocketing construction costs got in the way. Nasser told Star Phoenix business editor, Murray Lyons, “The market wasn’t there and we couldn’t get people to do the work. It was getting prohibitively expensive.”

The Kelsey has been renamed, the “Phoenix” and the property manager will begin showing the vacant 1, 2 and 3-bedroom apartments to prospective renters this weekend.

Given the extremely low vacancy rates for apartments in Saskatoon, I think we can see this as a pretty positive story. Does it finally make more sense for owners to hold and rent the apartments that they own? Could this be the first sign of a turn around that works in favour of local renters? Only time will tell, but in the mean time, 77 new apartment vacancies certainly can’t hurt.

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

On Wednesday, March 12, Mr. Michael E. Lobsinger, President CEO, Lake Placid Group, will speak to the Saskatoon business community at the 14^th Annual Traders Luncheon in support of Junior Achievement of Saskatchewan. He will discuss the challenges and rewards in building in Canada’s hottest markets – Calgary and Saskatoon.

Lunch begins at 12:00 PM at the Sheraton Cavalier in Saskatoon with the speech beginning at 12:30 PM.

Flyer with additional event details.

Ticket order form.

Thanks to Darren Hill, President and CEO of Junior Achievement of Saskatchewan for the heads up on this event.

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

Saskatoon city administrators are working hard to bring about a policy change in the city of Saskatoon. They’ve recommended a number of changes that they say would protect tenants from being displaced at times when vacancy rates are exceptionally low.

Their research had them comparing the policies which exist in other Canadian municipalities that have experienced real estate booms in recent years and they found that in most areas it’s quite a bit tougher to convert apartments to condos when rental conditions are tight. Vancouver, Victoria, Ottawa, and Kelowna all prohibit conversions when vacancies fall below a minimum threshold which ranges from 2-4%. No such policy exists in Saskatoon.

The executive committee responsible for reviewing recommendations brought forward by city administrators has tabled discussion on the suggested policy changes until after a March 11 court challenge initiated by tenants of Saskatoon’s Milroy Apartments which was recently approved for conversion.

Read the Star Phoenix coverage 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.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Represented by fellow tenants Martin Been and Barbara Henderson, Milroy residents will ask a Court of Queen’s Bench judge to overturn the decision and to grant an order prohibiting the city from issuing an approval certificate “unless and until the City of Saskatoon determines, upon evidence” that the conversion meets the requirements of Saskatchewan’s Condominium Property Act.

One section of the Act states the following with respect to condominium conversions:

On an application for a certificate pursuant to clause (1)(b), the local authority shall direct the issue of a certificate if it is satisfied that:

(e) Where the application relates to the conversion of existing premises used for apartments, flats, or tenements into units:

i) the conversion will not significantly reduce the availability of rental accommodation in the area;

ii) the conversion will not create significant hardship for any or all of the tenants of the existing premises.

The most recent Rental Market Report released by Canada Mortgage and Housing Corporation placed Saskatoon’s vacancy rate at a record low of just 0.6% following a busy year of condo conversion applications in the city of Saskatoon. Through 2007, over 1,500 rental units were approved for conversion, more than we’ve seen in the last ten years combined.

Councillors Bob Pringle, Pat Lorje, Darren Hill and Charlie Clark all voted against the application for conversion because of concerns over the tight rental market and the impact that a conversion would have on the buildings tenants.

I suspect that the city will argue that the Milroy tenants are interpreting the Condominium Property Act incorrectly. They’ll argue that this section of the Act provides municipalities with power to reject applications should they choose to do so, but does not limit their authority in granting applications under any circumstances which they deem appropriate.

Related articles include;

City of Saskatoon to consider proposed changes to condo conversion policy

Milroy Apartments in Saskatoon will become condos

Saskatoon City Council approves condo conversion policy change

NDP calls for “freeze” on Saskatoon condo conversions

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

Administrators have suggested that the city refuse applications to convert apartments to condominiums when Saskatoon vacancy rates drop below 1.5%. They further suggest that investors should pay a fee of $10,000 per unit when vacancy rates are between 1.5% and 3%. Finally, administrators would like to see conversions involving more than 50 living units actually go to city council for review. Currently, only those projects involving 100 or more living units require approval of council.

“While your administration remains of the view that condominium conversions have an overall positive impact on the community during normal market conditions, the drop in vacancy rates does raise the question as to whether the City of Saskatoon should continue to approve condominium conversion applications in the foreseeable future,” the report says.

Saskatoon developer Ken Achs, president of Midwest Development Corporation argued in a letter to council opposing the proposed changes that people may be overlooking the benefits of condo conversions, which include needed upgrades, which improve safety and quality of life for residents. He also notes that typically 30% of converted units are returned to the rental pool in an improved state.

“If there were suitable tax incentives and lower-priced land, more apartments would be built and the market would self-regulate through supply and demand,” says Achs in his letter.

The city received 54 applications to convert a total of 1,544 rental units to condominiums during 2007. That’s more units than were converted over the previous ten years combined. Saskatoon rental vacancy rates plummeted from 3% in the first quarter of 2007, to .6% by the third quarter. Rents saw significant increases over a short period of time while tenants, displaced by ongoing conversions scrambled to find a new place to live.

Read the story in today’s Star Phoenix 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.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Current bylaws require conversion applications which affect more than 100 units be approved by council who have the discretion to deny them if vacancy rates in the area are sufficiently low that tenants may have difficulty finding alternative accommodations. According to CMHC’s recently released “Rental Market Report,” apartment vacancy rates in the immediate vicinity of the Milroy have dropped to 1%, and as low as .6% across the city of Saskatoon.

The Milroy Apartments consist of 156 living units. Viking has promised to retain 40 of the units as rental properties which will be offered to long-term tenants at “market rents.” Like most promises, there is no legal obligation to deliver.

Of course, the fly in the ointment here is the tenants who will be impacted, “many of whom are over 70 years of age and coping with limited mobility and health issues,” according to the Saskatoon Star Phoenix.

In the past, I’ve taken the position that the market should be allowed to work and I appreciate the complexity of the decision that council was faced with. That said, I can’t imagine a worse time to force at least 116 tenants, many of them elderly, to find a new home. We could have justified putting this one off until rental conditions improve.

Perhaps “the market” will grow a conscience and bite Viking in the ass!

Read also: Star Phoenix – Milroy conversion gets OK from city council

Read also: Gerry Klein of the Star Phoenix – Few options for city renters

Read also: CMHC Rental Market Report for 2007, Saskatoon

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

City administrators presented their report which was prepared in response to a request brought forward by Councillor Pat Lorje during the meeting of City Council held on August 13, 2007 to “provide a report to the executive Committee on a review of our existing condominium conversion bylaw, together with suggestions for improvements to ensure an adequate supply of affordable rental housing while still maintaining an orderly investment market for multi unit accommodation.”

The report highlighted the positive and negative “implications” of condo conversions including the reduction in the supply of rental housing, the disruption and displacement of existing tenants, the creation of opportunities for affordable home ownership, investment and upgrading of older properties and the opportunities condo conversions create for small investors to enter the market.

The current condominium conversion policies offer the following protections for tenants occupying the apartments to be converted:

1) tenants must receive at least three months notice prior to an application being submitted;

2) tenants must receive a reasonable opportunity to purchase a converted unit in the building; and

3) tenants, at the time of application, may stay for up to two years after the date of application.

The report, written by Tim Stueart, Manager of the City’s Development Review Section noted, “In recent months, a number of investors have been undertaking measures to remove tenants from buildings in order to circumvent the requirement to allow tenants to stay in place for up to two years after the date of application. This has been done by giving tenants notice to vacate their units prior to condominium conversion application, or by significantly increasing rental rates.”

Both of these practices are allowable under Saskatchewan’s Residential Tenancies Act, in spite of the hardship that they can cause at a time when vacancy rates are low and alternate accommodations are difficult to find.

The new policy, approved last night brings the following changes:

1) increase the notice period for tenants from three months before an application is made for conversion to six months before an application is approved;

2) delete the provision which allows tenants to stay in place for up to two years after the date of application;

3) add a new clause which will provide that during the six month notice period, no rent increases shall take effect and no construction related to the condominium conversion shall be undertaken;

4) add a new clause which will provide that should the rent be increased or construction related to the condominium conversion be undertaken during the notice period, the applicant will be required to begin the notice period again from the date that the rent increases take effect or the date that the construction work is completed; and

5) add a new clause which will provide that where an applicant has vacated or substantially vacated a residential building prior to submitting a condominium conversion application, the application shall not be approved for twelve months from the date which it is submitted. This requirement shall be waived where a building is vacant as the result of significant damage or where t has been vacated as the result of a Health or Fire Order.

Clearly, these changes provide a strong disincentive for investors to attempt to circumvent policy. Hopefully, they will provide a fair balance for both tenants and landlords when it comes to notices to vacate.

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

Mayor Don Atchison disagrees that a condo freeze is the answer and points out that condo conversions have affected less than one percent of Saskatoon apartments. Atchison expressed concerns about potential lawsuits which could result from a moratorium, and also the potential for creating a disincentive for developers who might otherwise consider building Saskatoon apartments.

Quennell suggested that rent control, higher supplements for people on assistance and even new legislation are all possible actions which are “on the table for discussion.”

Read the Star Phoenix coverage here

Read John Gormley’s “Housing latest political football” here

You may recall that in April Premier Lorne Calvert stepped forward to “take the credit” for the housing boom which ultimately led to this “crisis.” It will indeed be interesting to see if the NDP government can find their way out of this mess prior to the provincial election next spring.

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

“The apartment sale for condo conversion frenzy is being fueled by out of province investors and first time homebuyers wanting to enter the market place.  The frenzy is heightened now by offers of up to $116,000 per unit, representing a near tripling of prices this year alone.  Multiple offers above the listing price are the norm and the demand has spread to small town Saskatchewan as well.”

Sound familiar?

He goes on to explain that when “resale prices of $180,000 to $220,000 for a renovated and converted two bedroom unit are common place” it’s not difficult for investors to justify this kind of huge up front investment and notes that developers can still “turn profits well in excess of 50% of their total investment.”

Last week, a number of converted units were sold between $215,000 and $222,000. I’ll suggest that we’re going to see a few more pushing the mid 230K mark within a week or two. Will buyers bite? Maybe, but these units are making less sense as an option with every price increase.

Don then goes to the fundamentals which are required to sustain any healthy real estate market like “affordability, new family creation, job and income growth.” He makes the point that resale prices have moved much closer to units available in Calgary.

He’s right! I see a selection of two-bedroom condos in Calgary between $250,000 and $300,000, some of them built in the last ten years.

Don reminds us that Saskatchewan lost 200 jobs in April, while seeing an increase of 200 in its labour force effectively pushing our unemployment rate to 4.1%. He points out that income growth in Calgary still outpaced Saskatoon by a full percentage point last year, never mind the fact that incomes were already 20% higher in Calgary before that.

“From a pure wages perspective a working couple can afford to spend $60,000 to $80,000 more on housing in Calgary than they can in Saskatoon.  The question is how close are we to Calgary prices and how much will our wages increase?  The answer to that question suggests that apartment prices should stabilize here soon.”

It looks to me like Saskatoon condo prices are already encroaching on that $60,000-$80,000 price gap. Consider also that the average selling price of a Saskatoon condo was up 75% in May when compared with May of 2006. Consider that hundreds of rental apartments have been removed for the rental market over the last couple of quarters and that many of them will be starting to come on the market as resale condos. Consider that the average selling price of a single family home increased just 39% for the same period outlined above and you see that the dollar difference to own a house as opposed to a condo has narrowed significantly over the last several months.

All of these factors suggest that the Bull Run which condos have enjoyed may soon come to a close. It’s doubtful that the current low inventory situation will allow prices to decline in the short term but I think we can expect to see prices begin to stabilize.

Read also: Saskatoon real estate market predictions.

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

What is up with the Saskatoon condo market? One and two bedroom apartment style condos have been flying off of the market at an unbelievable rate. The price change is almost mind boggling for a market that has become accustomed to annual price increases limited to the 4%-7% range.

I met with a young guy on January 9. He’s finishing his final year at the University of Saskatchewan and will soon be ready to sell his condo which is located on the east-side. It’s a 2 bedroom unit of approximately 700 square feet. Back in January, we were discussing a list price of around $85,900 but at the time he was at least two months away from listing the home. He emailed me yesterday wondering what has been happening in the condo market and he asked if there has been any change in the value of his home. I responded by telling him I felt pretty confident that we could market it at $110,000 today. He promptly emailed me back for a head check. “Let’s make sure we’re on the same page here Norm. I’m the guy…$85,900.”

Well, here’s a little recent history on what’s been happening in the condo market.

On January 9, I helped a young woman purchase a two bedroom condo at Shorebird Watch for $91,500. The following day, the price on those units went up to $96,500. A number of price increases were implemented over the next few weeks. By February 6 the price for these homes had reached $107,900. The last of those condos have been sold. On the morning of February 4, I listed a small condo on Kingsmere Boulevard for $102,900, which at the time was competitive with the Shorebird Watch prices. After doing a little pre-promotion we went to the market on the morning of the 6^th, showed the unit 23 times (that day) and by the end of a long day, my seller and I were reviewing a stack of offers. The winning bid was $113,000. Last week, my good friend Sean Wilson (as good a friend as one can be given the fact that we’ve never actually met in person) from Remax listed a 755 square foot condo on Wollaston Crescent for $114,900 and while there are still some conditions on the agreement which prevent the price from being published, I’m confident that it likely sold for the asking price, if not above. Wow!

Take a look at the Pine Creek town homes (no longer available). At the beginning of the year, you could purchase one of the base entry level units for $144,400. Those same homes are selling today at $199,400, a thirty eight percent increase in just two months time.

These particular homes all provide a pretty good overview of what’s going on in the Saskatoon real estate market. When you have what are essentially the same units selling repeatedly at progressively higher prices you can’t help but feel like you’re in Calgary or Edmonton.

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