This ongoing scam usually targets houses that are legitimately for sale. Online fraudsters grab details of the home from an Internet posting and advertise the home for rent, typically requesting a very reasonable deposit and a pretty attractive monthly rent. The “owner” will almost certainly be out of the country right now, or otherwise unavailable to show you the home in person and will suggest that you “just drive by and have a look from the outside.”

When you see what an amazing deal it is, you quickly agree to his/her terms and forward the requested deposit, which of course, you never see again.

Don’t “rent” a property that you can’t get access to. If you view a home and want to rent it, don’t be afraid to ask the person showing you the property for some form of identification. If they won’t provide it, be suspicious. Never do this kind of a deal online.

Norm Fisher
Royal LePage Saskatoon Real Estate

After the strongest two-year performance since the late 1970′s, Saskatoon single-detached housing starts will decline to 600 units in 2009 and bounce back to 725 units in 2010. The 2009 singles forecast represents the lowest number of housing starts since 2001 when 542 single starts took place.

Statistics Canada’s New House Price Index (NHPI) measures the increase in the price of a house where the detailed specifications pertaining to each house remain the same between two consecutive periods. Given the decline in production, we forecast a 6.6 per cent decline in the NHPI in 2009. Next year will see a partial recovery of these losses with growth of three per cent.

Saskatoon resales will continue to slow in 2009, slipping 15.3 per cent to 3,000 sales. Sales were last at this level in 2004 when 2,999 resales took place. Price reductions should contribute to a rebound in 2010 with sales of 3,150 units, a five per cent increase over the 2009 figure. Slower in-migration and a cooler economy combined with elevated housing prices have dampened demand and restrained sales from the historically high levels seen in 2005 to 2008. MLS® sales peaked in 2007 with 4,446 resales recorded.

Seasonally adjusted monthly sales are trending downward, but the severity of the decline has eased in recent months. In June 2008, the monthly trend was down close to five per cent compared to the previous month while seasonally adjusted sales were down by only one per cent from February to March 2009.

By the end of the first quarter, year-to-date new listings were up 16 per cent from last year at that time. March seasonally adjusted new listings were down 0.8 per cent from February 2009. March marked the sixth month-over-month decline in seasonally adjusted new listings activity. This suggests the new listings trend has peaked.

A slower decline in the number of sales and lower new listings have not yet worked their way into the inventory of homes for sale on the MLS® service. In March, there were 2,399 active listings, more than double the 2008 March figure. Seasonally adjusted active listings increased by 4.8 per cent compared to the previous month and reached the highest level on record in March.

Our forecast calls for average price to slip to $275,000 in 2009, a 4.4 per cent decline from the 2008 annual figure. Historically high active listings and buyer resistance to higher prices will result in the 2009 fall off in average price. There will be a modest increase of close to two per cent in 2010, bringing the aver-age price to the $280,000 mark. The firmer market expected in 2010 will allow modest price gains.

The full report 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

Here’s what I learned.

At the close of business today, there are 666 active property listings in the residential category (I know, kind of spooky).

225 of those properties are vacant.

Tenants occupy another 130 of these listings.

A closer look at the vacant property listings reveals the following.

93 are condos.

104 are single-family homes.

The balances are semi-detached homes, duplexes, mobile homes, vacant lots and other properties that have not been categorized for reasons unknown to me.

94 of the vacant homes are new, or near new.

57 of the new or near new homes appear to be owned by builders. Some are still under construction.

Individuals own 37 of the new or near new homes.

Of the 225 vacant listings, 93 are condominiums.

21 of these vacant condominiums are new, or near new.

10 are in the Rumley building representing additions to the housing stock.

About two-thirds of the remaining 62 are conversion units.

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

Under Section 60 of the new Residential Tenancies Act:

A landlord may end a periodic tenancy respecting a rental unit if:

(a) the landlord enters into an agreement in good faith to sell the rental unit;

(b) all the conditions on which the sale depends have been satisfied; and

(c) the purchaser asks the landlord, in writing, to give notice to end the

tenancy on one of the following grounds:

(i) the purchaser is an individual and the purchaser, or a close family

member or friend of the purchaser, intends in good faith to occupy the

rental unit;

(ii) the purchaser is a family corporation and an individual owning

voting shares in the corporation, or a close family member or friend of

that individual, intends in good faith to occupy the rental unit.

A landlord may end a periodic tenancy respecting a rental unit if the landlord has all the necessary permits and approvals required by law, and intends in good faith, to do any of the following:

(a) demolish the rental unit;

(b) renovate or repair the rental unit in a manner that requires the rental unit to be vacant;

(c) convert the residential property to condominiums pursuant to The CondominiumProperty Act, 1993;

(d) convert the residential property into a continuing housing co-operative as defined inThe Co-operatives Act, 1996;

(e) convert the rental unit for use by a caretaker, manager or superintendent of theresidential property;

(f) convert the rental unit to a non-residential use.

Also under Section 60:

(8) A notice pursuant to this section must comply with section 63.

(9) A tenant may dispute a notice pursuant to this section by applying for an order pursuant to section 70 within 15 days after the date the tenant receives the notice.

(10) If a tenant who has received a notice pursuant to this section does not apply for an order pursuant to subsection (9), the tenant:

(a) is deemed to have accepted that the tenancy ends on the effective date of the notice; and

(b) must vacate the rental unit by that date.

Regarding proper notice, Section 63 states:

To be effective, a notice to end a tenancy must be in writing and must:

(a) be dated and identified as originating from the landlord or tenant giving the notice;

(b) give the address of the rental unit;

(c) state the effective date of the end of the tenancy;

(d) state the grounds for ending the tenancy; and

(e) when given by a landlord, be in the approved form.”

Additional Tenant Rights

Having received a notice of a termination of the tenancy, a tenant has the additional right to end the tenancy earlier by giving the landlord at least 10days written notice and paying the proportionate amount of rent.

In the event that the landlord does not carry out the intended purpose stated in the Notice, atenant may seek compensation for having moved.

A form which is approved for use can be found here on the province’s Justice and Attorney General website.

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

This forwarded to me by a reader from the “Council Agenda in Brief.” (no longer available)

“City Council will receive a report from Administration recommending that they adopt, in principle, the New Construction Land-Cost Rebate Program and that Administration prepare an implementation plan by June 30. The program proposes a land-cost rebate to all developers of new rental units in Saskatoon, provided these units are constructed within 18 months and they remain rental units for 15 years. A further requirement is that 20% of these units be targeted as entry-level housing, and would also be eligible for an additional land-cost rebate. The rebates would be between 50% to 75% of land costs in return for an expedient delivery of new rental units. The program target is the construction of 1,000 new rental units within a two-year period. During the past twenty years, Saskatoon has had little investment in new rental unit construction, and this proposed one-time incentive is required immediately to break the inertia on new rental unit construction.”

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

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

It’s no surprise to anyone that rents have increased accordingly. According to CMHC, the average monthly rent for all types of suites surveyed saw a $76 increase from October of last year. I’m not involved in the rental markets but my perception is that rents are increasing at a much higher rate than what’s reported here.

CMHC points to a number of factors which are impacting vacancy rates including expanding employment and wages, in-migration, rapid price escalation of new and resale housing (affordability), rehabilitation of existing apartments leading to lower turn-over, and of course, increased numbers of condo conversions.

Analysts at CMHC expect vacancy rates to stabilize at less than 2% through 2008 while rents increase an additional $60.

Read to full Rental Market 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.

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 front page of today’s Star Phoenix says, “Tenants feel pinch: Heated market driving increases in rental charges.”

The story references the predicament of a Saskatoon woman, Marilyn LePage who faces her third rent increase in the last twelve months. She has written a letter to city council asking, “What can be done to keep rent increases and frequencies under control for myself and other Saskatoon citizens?”

The answer she received was sure to disappoint as council made it clear that “rent controls” fall outside of the local jurisdiction. City solicitor Theresa Dust reminded those present of past attempts by the province to place controls on rents and noted that it produced “poor results.”

This is one of the sad realities of a real estate market which is experiencing a growth spurt. It affects almost everyone, and those who don’t own their own home can be affected the most. They not only move further away from owning a home due to increased cost of housing, but they inevitably pay the price in higher rental costs as market values increase.

I expect that we’ll hear many more stories like Ms. LePage’s over the coming year. East-side apartment style condos are now selling in excess of $130,000. An investor who purchases such a unit with 25% down will face carrying costs of over $850 per month not including maintenance or insurance. At present, that same unit has a market rent of about $700. Assuming the unit is occupied every month of the year, the landlord is a couple of thousand dollars shy of covering expenses. They won’t be excited about that for very long.

At the same time, vacancy rates are falling across the city and that trend is expected to continue as more people move back to Saskatoon. Condo conversions will likely remove a number of units from the rental market over the next two years.

Ultimately, rents are subject to the principle of supply and demand just like resale real estate is. More renters and fewer rental units equal higher rent payments. It’s pretty much unavoidable.

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