Builders in Saskatoon started construction on 1,608 single-family homes and 1,386 multi-family dwellings for a total of 2,994 homes, up from 2,381 last year to mark an annual gain of roughly 26 percent.

Meanwhile in Regina, construction got underway on 958 single-family homes and 736 multi-family dwellings to close the year with 1,694 starts and a year-over-year gain that also reached 26 percent.

“Saskatchewan’s expanding economy and labour market continued to attract elevated numbers of migrants into the province’s centres. This bolstered housing demand in 2011 and fuelled a pace of starts rarely seen across the province,”  Michael Fabiyi explained in the CMHC media release.

Read the coverage in today’s Star Phoenix.
See CMHC’s Preliminary Housing Start Data report.

Here’s an interesting perspective.

The following is an excerpt from the report on Saskatchewan: Although RBC’s affordability measures for Saskatchewan continue to be above their long-term averages, widespread improvement was recorded in the third quarter. The measures fell for all housing types—between 0.8 and 0.9 percentage points—and reversed part of the increases (in some cases, substantially) from the previous quarter. Saskatchewan home buyers seem fairly comfortable with current affordability levels. Indeed, they were quite active in the third quarter, with resales rising nearly 6% from the second quarter to their highest levels in two years. Hefty gains were seen in Saskatoon and, to a lesser extent, Regina. Home prices in the province maintained their steady ascent, showing modest gains for most housing types. The Saskatchewan housing market will continue to be well supported by strong economic growth in the coming year.

Although the report lacks commentary on the Saskatoon market, the charts on page 8 of the report show slight improvements for the percentage of income required to carry a mortgage on a Saskatoon home, in spite of marginally higher prices.

Read the entire 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.

Interested in the value of your Saskatoon home? Grab a FREE Market Snapshot that includes sale prices of recently sold homes in your area. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Read the report titled, “Housing Evolution” 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

I’ve just been reviewing the housing strategy for the New Democratic Party (NDP), which is substantially more comprehensive. According to their platform brochure, the NDP plans to implement the following housing initiatives should they end up forming a government following the November 7 election.

• Rebating the PST on construction materials for new houses to be priced under $280,000; and
• Rebating the PST on the first $10,000 in repairs to homes more than ten years old.
• Investing $20 million into co-operative and community organizations to buy land for housing.
• Providing first-time homebuyers a $2,000 grant to cover closing costs and other related expenses for homes purchased for under $280,000.
• Offering interest-free loans to co-operatives and community organization building new housing stock.
• Ending unfair rent increases through next-generation rent control. We will  introduce rent control that makes allowances for new construction and non-corporate landlords.
• Investing $230 million to create 2,500 new public rental units, with 1,000 units dedicated to student accommodation, and to upgrade existing units by working with community organizations and co-operatives.
• Making a commitment to end homelessness with $20 million targeted to a “Housing First” approach, based on the belief that a stable place to live is a basic right and a critical building block to helping individuals gain stability in their own lives.
• Adding 750 new subsidized affordable assisted-living units, with special attention paid to building these onto long-term care homes so that couples who require different levels of care can stay together.
• Providing a property tax rebate of $500 per year to senior homeowners and renters.
• Introducing the Credit for Caring refundable tax credit of up to $1,000 per year to individuals providing care to elderly or disabled relatives or friends.
• Guaranteeing Saskatchewan residents the lowest-cost bundle of utilities in the country.

Read the NDP’s platform brochure here.

Read the Saskatchewan Party’s platform brochure 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

“The Saskatchewan Party says a new tax credit for first-time homebuyers would make home ownership a little more affordable.

On the campaign trail in Regina on Thursday, Premier Brad Wall pledged to introduce a non-refundable income tax credit to all first-time homebuyers that would result in an income tax savings of $1,100.”

Read more.

How do you feel about this campaign promise?

Our Saskatoon home search tool offers MLS® listings from all real estate brands with the most detail and information available anywhere. Check it out 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

It’s worth noting that the carrying costs for a typical detached bungalow in Canada required 39.9% of household income in the fourth quarter, significantly more than your lender would likely approve you for, but slightly less than what RBC says is the “long-term average.”

Here’s what the report has to say about Saskatchewan.

The Saskatchewan housing market finished 2010 on an enviable note. Home prices, for the most part, rose slightly in the fourth quarter, yet housing affordability improved for the second consecutive time. The provincial home resale market gained back solid forward momentum in the second half of last year (notwithstanding some softening in the final months), which contributed to re-establishing a stronger balance between demand and supply. Generally, the price increases in the fourth quarter more than reversed declines in the previous period but were too small to negate the beneficial effect of lower mortgage rates on affordability. The RBC Measures fell between 0.6 and 1.1 percentage points in the quarter, although the levels continue to be modestly above historical averages in the province. In our view, the Saskatchewan market will take its current affordability position in stride as a rebound in provincial economic growth, and, especially, continued strong migration inflows will support housing demand this year.

Read the full 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.

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

CIBC economists throw out some pretty precise figures in their “Economic Insights” report released today titled, “Ottawa Should Stay the Course” suggesting that growth in the Canadian economy will fall fairly flat through 2011 and that now is not the time for the federal government to be making major monetary policy changes.

According to CIBC, the typical Canadian home is 11.8% overvalued. British Columbia is the worst off overshooting fair market values by 16.8%. Atlantic Canada is the least overvalued with prices that are out of their fair value range by just 5.9%. Saskatchewan sits just below the national average with housing prices that are 11.3% above fair market value.

Who knew?

Read the entire CIBC 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.

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

Canadians from coast to coast saw a higher percentage of their income going towards housing costs in the second quarter of 2010, largely driven by an increase in house prices and mortgage interest rates when compared against the first quarter. This marks the fourth consecutive time that RBC’s “Housing Affordability Measure” rose. According to the Housing Trends and Affordability report released by RBC Economics this morning, the increases have managed to consume roughly half of the improvements experienced in late 2008 and early 2009 when house prices in most areas of Canada cooled significantly.

The deterioration in affordability was seen across the country with the worst of it experienced in Ontario and British Columbia with the remaining provinces seeing “minor erosion.” Only Saskatchewan and Manitoba experienced some improvements, though they were limited to townhomes in the former and condominiums in the latter.

In Saskatchewan

“While home resale activity in Saskatchewan has been on a declining trend in recent months, home prices have held up to a large extent. In the second quarter, prices either appreciated moderately or edged lower just marginally, depending on the housing type. With mortgage rates rising during the quarter, affordability generally eroded some more in the province. RBC Housing Affordability Measures moved up between 0.6 and 1.5 percentage points (townhouses bucked the trend, edging lower by 0.1 percentage points). These increases pushed levels further above long-term averages, thereby indicating that some tensions may be building in the provincial market. Nonetheless, we expect that a strong rebound in the provincial economy this year and next will likely help ease such tensions.”

Read the entire 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

Canada Mortgage and Housing Corporation (CMHC) released their 3^rd quarter Canadian housing forecast this morning. With hundreds of billions of dollars riding on insured mortgages, nobody will claim that CMHC doesn’t have a fair bit of skin in the real estate market and is not exactly an unbiased source. Just the same, they have a significant voice with the national media and there’s little doubt this report will be all over the news today.

Nationally…

…Sales of existing homes through the Multiple Listing Service® (MLS®) strengthened steadily through 2009 and remained strong for the first half of 2010. For the remainder of 2010, MLS® sales will decline and will stabilize at more sustainable levels in 2011. Overall, 463,800 sales are expected in 2010, followed by 456,000 in 2011.

The average MLS® price is expected to edge lower in the third quarter of 2010 with modest growth resuming thereafter as balanced market conditions curtail the upward pressure on house prices. For 2010, the average MLS® price will be $338,900 while 2011 will see a slight increase to $342,200.

Provincially…

…The slower pace of price increases, coupled with historically low mortgage rates, improved affordability and stimulated housing demand in the first half of 2010.The strong gains in the first half of the year will be offset by a moderation in existing home sales in the second half as mortgage rates rise and pent-up demand is exhausted. Accordingly, resales in 2010 are expected to dip below last year’s annual level before advancing in 2011 on the strength of an improved labour market and increased demand supported by migration patterns.

Existing home prices in Saskatchewan will rise modestly through the balance of the year and going into 2011, reflecting balanced market conditions. Active listings have moved higher and this will ensure price growth remains modest over the forecast period. Accordingly, the average MLS® price will increase to $239,250 in 2010 and to $246,200 the following year.

So there you have it. Even as bubble talk continues to capture the interest of the national media, CMHC chimes in to predict a stable market through 2011.

Read CMHC’s Housing Market Outlook, Canadian Edition is here.

The Saskatoon version of this report should be out in a few days. I will add a link to this post.

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

Mr. Tal clearly feels that Canadian housing is overvalued but he doesn’t think there is an unmanageable affordability problem in Canada.

First, Tal believes that “at least 1.5 million houses in Canada are overvalued” and his research indicates that prices on those properties are inflated by as much as 14%. Provincially, British Columbia is the worst with an over valuation of 20.7% and Alberta is the least inflated at 8.6%. Saskatchewan fits neatly between the two at 13.2%, just below the national average.

Tal goes on to say that the market is showing clear signs of cooling and that price growth has “rapidly decelerated” over the past few months. He goes on to suggest that absent a “trigger” to a violent correction, prices will not necessarily crash. According to Tal, rising rates will not be the trigger some believe it to be. He speculates that rates will climb slowly and that most Canadians will be able to manage the costs associated with those changes.

According to Tal and CIBC’s affordability index, which is based on actual transactions as opposed to “synthetic mortgage” assumptions, we can afford it. On average, Canadians are using just 15.6% of their income to make mortgage payments. “Manitoba and Saskatchewan still enjoy the best home ownership affordability in the nation” with just less than 12% of income being used on to service mortgage debt.

The report concludes by saying, “While higher interest rates will clearly erode affordability, our detailed look at the distribution of mortgage payments as a share of income does not reveal major pockets of vulnerability. Accordingly, the most likely scenario is that higher interest rates will lead to a modest decline in prices (probably in the magnitude of 5%-10%) in the coming year or two. But given relatively modest rate hikes and the current balanced affordability position, the more significant adjustment will be in housing market fundamentals that are likely to catch up with prices in the coming years—paving the way for a healthier housing market by mid decade.”

What do you think?

Read to full 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.

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

So, how will home prices be impacted?

“We estimate that at their peak in the first half of the year, average home prices will be roughly 15% overvalued when benchmarking against long-term economic fundamentals, such as income growth. If our forecast unfolds, roughly a third of this excess would be unwound by the end of 2011, leaving our estimate of valuation at roughly 10% above fundamentals, back to what it was in late 2007. As in our last forecast, we still expect the bulk of the readjustment to occur over a medium-term time frame of 2-3 years whereby average home prices rise roughly at the rate of inflation-after having climbed by over 8% annually over the last 8 years. Meanwhile, household incomes will be allowed to catch up and close the gap, which is concentrated in the country’s most expensive markets (e.g. Toronto, Vancouver).”

The bottom line?

TD expects to see the average price of a home in Canada to reach $349,000 in 2010 and moderate to $339,700 through 2011 when unit sales are expected to post a 10-12% decline. They expect prices to drop in seven of ten Canadian provinces and predict that the Prairie Provinces will post “meager” gains over the same period. TD says the average price of a home in Saskatchewan will finish 2010 at $242,000 and rise to $245,000 through 2011.

While TD is predicting national price declines that are nearly twice those called for by the Canadian Real Estate Association (CREA), their predictions paint an optimistic picture given the amount of bubble talk we’ve heard over the past couple of months. TD economists believe that a quicker and stronger than expected economic recovery, and credit markets which will remain favourable by historical standards, will keep Canadian housing from the crash that some are predicting.

There does seem to be a couple of points of consensus amongst those who regularly comment on the nation’s real estate market. Demand is going to drop and home prices are likely to follow.

Phil Soper, chief executive officer for Brookfield Real Estate Services, owner of Royal LePage and le Capitale is quoted in a Globe and Mail story today. “It’s likely too conservative, but they (CREA) have the direction right,” he said. “Affordability is eroding in Canada, and higher prices and more expensive mortgages will push people out of the market quite quickly.”

Read TD’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.

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

The Salvation Army maintains that homelessness is on the rise across the country as a result of the recession. Of course, a number of factors contribute to the growing problem to homelessness. An inability to find affordable housing was a contributing factor in up to sixty percent of instances of homelessness.

Read the report here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Lots of work remains to rid the Caswell Hill area of the smell and noise generated by the constant coming and going of buses. Council is awaiting a report outlining options for the relocation of the bus barns, which is expected to be complete by the end of May. Following the move, an extensive environmental cleanup would be undertaken to prepare the land for development.

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

In Saskatchewan, a more balanced market will be driven by continued population growth, CMHC predicts. They expect the province’s numbers to grow by ten thousand in 2010 and 2011, a combined result of positive inter-provincial and international migration. CMHC sees single-family housing starts in the province reaching 3,150, up from 2,829 in 2009, and MLS sales growing to 11,500 from 10,856 last year. “Considerable choice” will see price growth of resale homes moderate as they gain just 2.3% to reach $239,000.

In Saskatoon, single-family home starts will rebound from 1,101 to 1,200 this year following a 7.6% decline in the New Housing Price Index in 2009, the report predicts. MLS sales numbers will increase to 4,100 from 3,834 and the average resale price of a Saskatoon home will see a marginal increase from $278,895 last year to $285,000 through 2010.

Read the full 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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Other tidbits from the Saskatoon section of the report include the following:

• While sales are still off of last year’s numbers average prices continue to edge up.
• Balanced conditions characterize the market overall.
• Rising demand could create a “tightening of supply” in the single-family home inventory.
• Multiple offers have re-emerged in prime “hot pocket neighbourhoods” but remain the exception.
• First time buyers account for the “lion’s share” of activity.
• A “good selection” of condominiums still exists.
• Buyers remain cautious, as do developers
• Speculation is virtually “non-existent” in the Saskatoon market.

The report provides market opinions provided by Remax brokers in 16 major Canadian markets including Remax Saskatoon. Read the full 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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

First of all, people wishing to become registered to trade in real estate as a sales person must have completed Grade 12, or equivalent.

Secondly, prospective registrants must complete a home study course known as Real Estate as a Professional Career, which is offered by the Association of Saskatchewan Realtors® (ASR). Enrolled students have one full year to complete the program. Before the conclusion of the one-year period they must present themselves for an examination and obtain a mark of at least 70%.

Once they have completed Real Estate as a Professional Career, prospective registrants must complete at least one of the following specialty courses.

• Residential Real Estate as a Professional Career
• Commercial Real Estate as a Professional Career
• Property Management as a Professional Career
• Farm Real Estate as a Professional Career

All four of the specialty programs are offered by the ASR on a home study basis. Enrolled students have one full year to complete the program. Before the conclusion of the one-year period they must present themselves for an examination and obtain a mark of at least 70%.

Once a person completes the mandatory courses they qualify to apply for registration to trade in real estate within the province of Saskatchewan. An application for registration as a licensed salesperson, signed by an employing broker, must be made to the SREC within two years of successfully completing the chosen specialty course. Applicants must produce proof of having obtained a Grade 12 or equivalent, and a completed criminal record check.

In addition, within each one-year registration renewal period, all registrants are required to complete mandatory continuing education known as the Continuing Professional Development (CPD) Program approved by the Commission and provided by the ASR.

Becoming a REALTOR®

The majority of the real estate companies in Saskatchewan, particularly those located in the urban areas are REALTORS®, and all of the sales people that they employ must also be REALTORS®. In addition to expanding the potential opportunities that might exist for a real estate registrant, choosing to practice as a REALTOR® also provides access to the Multiple Listing Service® (MLS®), a sophisticated system for sharing property information and commissions with other REALTOR® members. In a nutshell, the MLS® provides agents with easy access to a large inventory of homes for sale, and access to a large number of sales people for the homes an agent may have listed for sale. Agents use this system to cooperate with each other for the aforementioned benefits and typically share commissions when they successfully bring a buyer and seller together to complete a real estate transaction.

Becoming a REALTOR® requires a registrant to become a member of the Saskatoon Region Association of Realtors®, the Association of Saskatchewan Realtors®, and the Canadian Real Estate Association (CREA). Members must commit to conduct their business in accordance with the rules and regulations of each organization, and the Code of Ethics of the CREA.

Here are the costs associated with becoming a member of these organizations.

That’s a brief overview of what it takes to become a real estate agent in Saskatchewan, and to become a REALTOR® in Saskatoon. If you have questions, or are interested in exploring a career in Saskatoon real estate I’d be happy to hear from you. My contact information is here.

Other resources

Association of Saskatchewan Realtors® website
Association of Saskatchewan REALTORS Career Guide (a must read)
Saskatchewan Real Estate Commission website
Canadian Real Estate Association website
Royal LePage Real Estate Career website

Please note that the estimated costs outlined above were valid at the date of publication and are subject to change, without notice, at the discretion of the billing organizations.

Norm Fisher
Royal LePage Saskatoon Real Estate

Housing affordability improved in Canada for the fifth consecutive quarter during the second quarter…At the national level, affordability has now been restored to pre-housing boom levels (that is, those prevailing in late 2005-early 2006)… However, this restorative phase of the affordability cycle is likely running out of steam. The two major contributors to the significant improvement during the past year or so — the decline in mortgage rates and the drift down in prices — appear to have reached turning points.

Homeownership continued to become more accessible in Saskatchewan in the second quarter with RBC’s affordability measures falling between 0.4 and 1.4 percentage points. The measures have retreated considerably since their peaks early last year. However, they are still some distance above long-term averages, although these averages might have been depressed by previously unfavourable migration flows that have since been reversed. Certainly, the current levels of affordability do not appear to have been an obstacle to buyers taking the plunge in recent months. Sales of existing homes in the province have rebounded smartly, up by more than 50% since their low in March. If sustained, this will eventually heat up property prices, which are still trending modestly, lower.

This graph shows the recent affordability trend for the four Saskatoon housing types that RBC tracks and reports on, in comparison to the historical norm for the area. The figures shown on the graph represent the “proportion of median pre-tax household income required to service the cost of mortgage payments (principal and interest), property taxes and utilities” on the various housing types. So, of course, the lower the figure, the more affordable the homes are.

Saskatoon housing affordability trend compared to long-term historical norm.

Read the full RBC report here.

Thanks for the heads up to my friend Larry Yatkowsky who runs Yatter Matters where he blogs about the Vancouver real estate market.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Real estate geeks can follow our daily updates on Twitter @Norm_Fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Improved affordability lifts Canada’s housing markets

Housing affordability greatly improved in the first quarter of this year; RBC’s affordability measures for all housing types recorded some of their biggest quarterly declines on record (the lower the measure, the more affordable homeownership is). At the national level, the improvement ranged from 2.8 percentage points for standard condominiums to five percentage points for two-storey homes.  At the major city level, the decline was as large as 8.6 percentage points (for Vancouver’s two-storey homes).  This third consecutive quarterly improvement in affordability has reversed much — although not all — of the deterioration that occurred during 2006-2007 when Canada’s housing markets reached a boiling point.  In most areas of the country, RBC’s affordability measures have now returned to, or near, long- term averages, which is consistent with more solid market fundamentals.

Saskatchewan — Finding balance

RBC’s affordability measures for Saskatchewan declined again in the first quarter – between 2.5 and 3.3 percentage points – making the year-over-year drop among the largest on record for the province.  Saskatchewan’s housing market now appears to be negotiating its way quite deftly towards a more sustainable level of activity, putting to rest earlier concerns that it might crash following the 2006 – early 2008 boom.  Moderately stronger sales of existing homes this spring — after bottoming at the start of this year at still-elevated levels — and a slower pace of properties being put up for sale have restored some balance into the market.  This is further helped by considerably weaker construction of new housing units in the first four months of 2009, which will bring fewer new units onto the market.  The return to balanced market conditions should help stabilize prices in the period ahead.

Read the full report here.Other posts related to past RBC reports can be found 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

As we head into the all-important spring season, the ongoing cyclical correction will put the entire housing sector to the test. However, while the pain will likely persist for many homeowners and industry participants, there are encouraging signs on the affordability front in light of developments through the fourth quarter of 2008. The sharp deteriorating trend in RBC’s affordability measures from about 2004 to late 2007-early 2008 has reversed in the past year. At the national level, the RBC measures improved 2.3 to 3.5 percentage points between the final quarters of 2007 and 2008, with markets in Alberta and British Columbia showing more sizable repair (although this largely reflects the extent of the earlier impairment).

The improvement can be primarily credited to monetary policy during that period because lower mortgage rates account for the largest portion of the reversal in RBC’s measures in almost all major urban areas in Canada except for cities in Alberta. Rising family income also contributed positively across the country.

Only in Calgary, Edmonton and Vancouver was price a constructive factor in the year-over-year change – although price has played a wider beneficial role in recent more quarters. Higher utilities and property taxes have remained a modest undermining factor.

Going forward, low mortgage rates and persisting downward pressure on housing prices will continue to help repair affordability, but slowing income growth will act as a restraint.

Saskatchewan — Boom is over but no bust

The housing boom is officially over in Saskatchewan. Market activity has cooled considerably from the frenzied pace of 2006-early 2008 and prices have begun to come off the heights they reached during their spectacular run-up. However, the post-boom period so far has been a mostly orderly affair thanks to the province’s largely supportive economic and demographic fundamentals (Saskatchewan’s economy is the strongest in Canada and is forecast to remain so during 2009). These positive factors overshadow extremely poor affordability levels that have resulted from the spike in prices of recent years. While lower mortgage rates, income gains and, in more recent quarters, lower prices have helped improve affordability in the past year, RBC’s measures remain at worrisome levels compared to historical averages. This represents an element of risk if the province’s economic performance is weaker than expected.

Read to entire report here.

Good news, bad news for home buyers: Star Phoenix

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

“The decline in Regina’s housing market started in 2008 – later than some other cities – so we lagged behind other markets,” said Mike Duggleby, Manager of Royal LePage Regina Realty Saskatchewan. “However, average 2009 house prices have increased over last year.”

After posting price gains throughout 2008, Regina South’s housing market has seen little activity so far in 2009 – with average prices for detached bungalows up 21.9 percent year-over-year to $295,000, standard two-storey homes up 13.7 percent to $290,000 and standard condominiums up 12 percent at $196,500. In Regina North, standard two-storey home prices were unchanged from a year ago at $200,000, while bungalow prices were up 2.6 percent to $238,250 year-over-year. Meanwhile, condominium prices declined 3.6% year-over-year to $141,111.

According to Duggleby, Regina’s buyers are sitting on the sidelines. “People are waiting to pick up bargains,” he said. “They’re waiting to see if prices go down further. Right now, there is an over-supply situation.”

Despite a slumping global economy, Duggleby believes it won’t be long before the province’s vibrant resource and construction sectors help drive all residential real estate prices back up. “House prices are connected to our local economy,” he says. “Construction is starting on a global transportation hub that will take air, rail and trucking freight from Thunder Bay and Vancouver. Work is also starting on a new western Canadian distribution centre for Loblaws.”

Although Saskatoon home prices have dropped over the past year, values have started to rebound with average price increases of 3.5 percent for key housing types within the first quarter of 2009 (not exactly how I would have characterized the first quarter, but I did point out that average prices and cost per square foot increased in January and February).

Condominium values took the biggest hits year-over-year, with prices down 13.6 percent in Saskatoon North and a decline of 16.4 percent for condos in Saskatoon East Central. Across Saskatoon, the average price of a detached bungalow was down 8.1 percent year-over-year, to $312,500, while two-storey homes were down 11.8 percent to $348,500.

The number of homes in Saskatoon for sale in March – approximately 1,400 – was down from a peak of 1,800 last year – but current supply levels are still very high and well above average.

“Prices have seen downward pressure over the last twelve months,” said Norm Fisher, Sales Manager, Royal LePage Saskatoon Real Estate Ltd. “This is the first time in this particular cycle that we’ve shown year-over-year price declines – from 4.5 percent to as high as 16.7 percent in a standard townhouse in the West End. It’s definitely a buyer’s market.”

Most of the 2009 activity in Saskatoon has occurred in the lower priced housing categories. Home ownership has become more accessible, with an average first quarter house price of approximately $282,700 – down from last year’s peak of $318,300.

“Through 2007 and the first half of 2008, Saskatoon experienced the greatest deterioration of affordability in Canada, so we were due for a correction. We want our young people to stick around and build a future here. Some first time home buyers are starting to come back to the market because of low interest rates.”

At the other end of the spectrum, Fisher notes that very few of Saskatoon’s half-million dollar homes sold in the first quarter of 2009.

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

Check the CNN story here.
Cassandra Kyle’s 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

RBC’s recently released “Housing Trends and Affordability” study suggests that housing affordability in the province saw some modest improvements over the third quarter but the Saskatchewan housing market is experiencing a “hangover” after a year of partying hard.

“Like Alberta and British Columbia before it, Saskatchewan is about to feel the downside of frenzied markets. Housing demand in the province greatly benefited from the red-hot prairie economy (thanks largely to strong demand and prices for commodities) and the inflow of people into the province. However, housing markets got carried away as skyrocketing prices significantly overstepped historical relationships with household income. RBC’s provincial affordability measures spiked in all housing segments last year, reaching the poorest levels on records dating back to the mid-1980s. As is often the case, a wild party ends with a hangover and Saskatchewan’s fête last year will be no different. Housing resales and prices are already showing clear signs of weakening. More is likely to occur.”

Take two Tylenol and call me in the morning.

Read RBC’s Housing Trends and Affordability study here.
The Star Phoenix covers the 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

Speaking to a group of RBC clients in Saskatoon on Friday, Ferley noted that a “wide range of commodities” are experiencing higher prices. He’s predicting that uranium, potash, wheat and oil production will push Saskatchewan’s economy forward by 3.5 percent in 2008, and 3.25 percent in 2009, compared to national growth rates of 1.5 percent and 2.5% respectively.

The Saskatchewan economy was the subject of much speculation in 2007, but ultimately underperformed on the most bullish predictions, which had forecast real GDP growth between 4 and 4.8 percent. Saskatchewan’s real GDP growth came in at 2.8 percent, just slightly above the national average. However, Saskatchewan’s nominal GDP growth through 2007 was exceptionally strong at 11.4 percent, topping all provinces except Newfoundland and Labrador. Real GDP measures changes in production, while nominal GDP measures the actual dollar value of the economy. You might say that we worked 2.8% harder, but earned 11.4% more.

Read the Saskatoon Star Phoenix story by Wendy Gillis here.

Read also: Saskatchewan Economy Underperforms on Expectations

Read also: The Rest of the Economic Growth Story

Read also: Saskatchewan Could Become an Embarrassment of Riches: RBC

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 rest of the story followed this week as StatsCan released a report on “nominal gross domestic product,” which stated that Saskatchewan has “stepped into a new era of prosperity.”

It’s my understanding that real gross domestic product is a measurement of productivity in an economy, while nominal gross domestic product is a measurement of dollar volume generated by an economy. Apparently, it’s the latter that gives Saskatchewan much higher marks.

From the StatsCan Report

• Newfoundland and Labrador’s economy led the nation in terms of growth in nominal gross domestic product (GDP) in 2007, at 13.4%. Saskatchewan followed with growth of 11.4%, ahead of Alberta’s 8.3%.

• Newfoundland and Labrador’s growth in nominal GDP of 76% between 2002 and 2007 also topped Alberta’s gain of 73%. Saskatchewan posted the third highest gain over the period, its GDP advancing 49%.

• Higher crude oil prices have been driving the boom in Newfoundland and Labrador and Saskatchewan. They are the top producers of crude petroleum in Canada after Alberta, accounting for almost one-third of Canada’s production.
  

• In 2007, Saskatchewan exported $21 billion to other countries, a 13% increase over 2006. This placed Saskatchewan behind only Newfoundland and Labrador for the title of fastest growing provincial exports. In addition to crude oil, agricultural products, potash, and uranium have made major gains since 2005.

• Perhaps most significantly, both Newfoundland and Labrador and Saskatchewan have reversed their long-term trend of a declining population…Saskatchewan’s population grew 0.8% in 2007, its first increase in over a decade, which put the population once again to 1 million. Moreover, the population of the 15 and over age group in Saskatchewan in April 2008 was 2.0% larger than it was in April 2007.

• As incomes have risen and population growth has resumed, Newfoundland and Labrador and Saskatchewan consumers have gone on a buying binge, leading provincial growth in retail, housing and auto sales.

Read the StatsCan report on nominal gross domestic product here.

Read the StatsCan report on real gross domestic product 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