31 comments so far. We'd love to hear your thoughts.

• Sunny
  April 7th, 2009 at 2:18 PM

  Norm that’s sad but true and I don’t know if that will be the end of it either. What happens to poor couples that took out their loan for $300,000 + if interest rates do rise? I think there are going to be a lot of people feeling the crunch. It may not be now, but 5 years goes by quickly. I really do feel sorry for a lot of the people also that had to move this year because they lived in an investment property and the place was selling. I think this year has been profitable for some but also really hard for others. I really liked this post though Norm I think it will remind others of the way this ‘boom’ has been hard for Saskatoon also.

• Alex
  April 7th, 2009 at 2:18 PM

  The process is the re-allocation of wealth from the middle & lower classes to the rich.

  Envision one person who already has more than enough money to live quite comfortably, taking more money all for themselves. Not even employing others.

  Envision our elected representatives in government and their way of life.

  If the politicians made three quarters of the average income for whichever region the represented – would the priorities change? Would solutions be found more quickly?

  It all has to come from somewhere, and it comes from the middle and lower classes in Saskatoon. People who are renting and considering buying a home have now had the decision made for them.

  People are less capable to own property and thus the one guaranteed appreciable investment has been moved out of their reach.

  The middle class is being eradicated in favor of a very wide and short pyramid.

  This is not how you grow and thrive a city. Current optimism flies in the face of the consequences Saskatoon will eventually see – if not already.

• Johny
  April 7th, 2009 at 2:19 PM

  An excellent and very important post Norm. Quite contrary to the sunshine and lollipops that Calvert and the likes have been Rawlco-broadcasting to the people.

  Sadly enough, when the NDP is blamed, the right-wing will point fingers… they’ll ride the blame game right into gov’t. Only then will we truly know the definition of class division. Look to calgary, where the streets are riddled with $250000 cars driving right past those who are demoralized and hungry sleeping on the streets.

  I like to think we’re better than that, but where are we headed?

  J.

• Athol Kay
  April 7th, 2009 at 2:19 PM

  Great post Norm. Feed Bagged this one.

• Saskaberry
  April 7th, 2009 at 2:19 PM

  I have another suggestion. If you are moving, likely you have clutter (things you like but don’t need and don’t have space for in your new home or as you are “staging” your home for sale). Rather than have a garage sale so you can go out and get a few dvd’s or a night at the movies, why not donate your items to a few charities like The Crisis Nursery? If you have little kids they could pare down their toys a little to add to the donation.

  Women’s clothing could go to Interval House.

  All clothing could go to the Saskatoon Friendship Inn Clothing Depot.

  Another suggestion, if you have purchased a home which requires renovation or you are reno-ing your current home for sale, you could donate undamaged building “parts” to Habitat for Humanity, they have a store in which they sell these items to raise funds for their builds.

  http://www.habitatsaskatoon.ca/restore.php

  Just a few ideas…

  Besides who wants to sit around on their lawn all day and have well-to-seniors paw through your stuff and barter over “two-bits”????? Others need your stuff more than they do.

• Norm Fisher
  April 7th, 2009 at 2:20 PM

  Thanks everyone.

  A visit to the Frienship Inn at lunch time is an excellent way to get back to reality.

  Saskaberry, some good ideas. Thanks for throwing them out.

• Alex
  April 7th, 2009 at 2:20 PM

  Good idea Saskaberry. I know my fiancee and I regularly donate clothing we don’t use anymore.

  I donated a whack of computer parts before my last move to a community center.

• Johny
  April 7th, 2009 at 2:21 PM

  Hey Alex,

  I’ve got a whack of computer parts to donate as well! How do you find a recipient? Are there any programs in sask for donating systems or time to setup systems for community centers? I tried google’n it but not much to go on.

  J.

• Jonathan
  April 7th, 2009 at 2:21 PM

  Great blog Norm!

  Good people from Saskatchewan always!

  Jon

• sanna
  April 7th, 2009 at 2:21 PM

  I also actively participate in charity but Charity never eliminates poverty.People can’t afford to rent a place now.The affordability of the houses is detoriating day by day ,which is leading people with no saving for anything.Looks like Saskatoon is not the best place to live now.We can not compare saskatoon and Calgary.Calgary has lots of job oppurtunities, higher wages,low property tax and no pst.Besides I don’t see much difference in the housing prices while comparing calgary to saskatoon.

• Jason
  April 7th, 2009 at 2:22 PM

  Sanna,

  Like I have told Alex, please write your MP and Premier and express your concerns. I have wrote Lorne Calvert’s office twice now, expressing my and others concerns about the rising housing and rent costs. In his office’s brief reply, he said that I was of a small minority, and that most of the feedback he has recieved has been in praise of the provinces recent economic success. Please write him and let him know that there is another side to this “economic success” that he and his cohorts are apparently ignorant of. I also wrote several letters to our local Nutana MP, Pat Atkinson, but they have all gone unanswered.

• Alex
  April 7th, 2009 at 2:22 PM

  I was writing letters earlier this year.

  Lorne and any other politicians don’t care. They’re an arrogant bunch and care little about what their ignorance is doing to this province.

  They should be taken to task on this deliberate ignorance because it is going to land Saskatoon a lot of problems in the near future.

• sam
  April 7th, 2009 at 2:23 PM

  Sanna, you just have no idea what you are talking about if you say housing prices are the same in Saskatoon and Calgary. Fact is, average price in Saskaton = $250K, average price in Calgary = $480K. Do your homework or shutup.

• sanna
  April 7th, 2009 at 2:23 PM

  Calgary Bridle wood one of the most desirable area 1,841 sq ft 2 storey house is listed for 484,900 and the property tax is only 1,794 . similalrly , receltly,somerset calgary 2 storey house 1,657 sq ft got sold on 450,000. Property tax of this house was only 1820.One of my friend just bought this house.

  Saskatoon Arbour crrek 2 storey house 1,570 sq ft is listed in 469,000 and the property tax is 3,389.

  I am not making it up you can go to http://homes.point2.com/CA/Alberta/Calgary and check it by yourself.

• Johny
  April 7th, 2009 at 2:23 PM

  Sam,

  A lot more factors to consider than price. Affordability is a different story. Saskatoon affordability is very close to calgary’s. Also consider avg weekly income difference of approximately $250 per wk between saskatoon and calgary. Monthly mortgage payments between a house in sask and a house in cal are very VERY close.

  J.

• Carrie
  April 7th, 2009 at 2:24 PM

  Sanna, I think the point was AVERAGE house price in S’toon and Calgary. Of course, anyone can pick and choose to find ones that are well above or below that average.

  Fact is, S’toon still have a much lower average housing price than cities like Calgary.

• sanna
  April 7th, 2009 at 2:24 PM

  I am not choosing the well above or below average price.I was looking for a 2 storey house either in calgary or in saskatoon for my friend, who was moving from Ottawa.She just bought the 2 storey house in calgary because they had less monthly housing expenses in calgary than in saskatoon because of the low propety tax and other things.

• Warren
  April 7th, 2009 at 2:25 PM

  Sam:

  Since you’ve sort of brought this upon yourself, if you’re uneducated about a topic, it’s best to keep your own mouth shut (or you end up looking kinda like an idiot).

  According to the most recent report (RBC’s Housing Affordability Index released June 15), Calgary’s affordability index is 40. Saskatchewan’s as a whole is 36 (I couldn’t find any Saskatoon specific statistics). Combine my understanding that recent housing price gains have been more substantial in Saskatoon with my knowledge that mean household income is higher in Regina ($15,509, or 37%, more according to the 2006 census), and it’s safe to assume that Saskatoon’s affordability (cost of housing as a percentage of your household pre-tax income) is at or above that aggregated 36 for all of Saskatchewan.

  Now read closely what RBC defines as “affordability”. “RBC Economics Research’s housing affordability measures show the proportion of median pre-tax household income required to service the cost of mortgage payments…” If I could use a highlighter on this blog, I’d bring attention to the words “pre-tax”. Given the fact that taxes are lower in Calgary than in Saskatoon (especially property taxes, which are absolutely absurd in Saskatoon – I think Norm would agree with me on that), that means that it’s entirely conceivable that Calgary’s ’40′ leaves more after-tax money in a Calgarian’s pocket than Saskatoon’s number (36 or more) leaves in a Saskatonian’s pocket.

  I will again point out that Calgary’s market is so out of whack it’s comical, and should not be used as a benchmark for anything, let alone what a city of 1/4 the population, unlimited land, and slow job growth believes housing should be worth. And according to this measure Sam, the differences in affordability are debatable.

  The mean household income stats I posted (from the 2006 census) are actually news to me. I always knew that there were more professional job opportunities in Regina (when I graduated, and found zero positions available using my degrees, I considered moving to Regina but went to Calgary instead for a variety of reasons). This only furthers my point that the ‘jobs, jobs, jobs’ in Saskatoon are service and construction related. Neither one of those is sustainable on its own (unless as some people have suggested, Saskatoon becomes a giant retirement community – which isn’t unbelievable given the huge inmigration of rural boomers into ‘the city’, but which poses an entirely new set of challenges to your existing infrastructure and services). Saskatoon does not hire university graduates. In fact, during my stay there I always sensed a large backlash by many of the long term residents against university grads, sort of an “anti-elitism” sentiment (which is funny, because a University degree certainly doesn not make someone an elitist). The ‘brain drain’ continues and these are the people who will be making large incomes and be able to afford expensive homes.

  This is going to pain me to say, but it’s true. Price is irrelevant, what’s important is your ability to pay. The fact is that I can afford a home here in Calgary, as ridiculous as they are priced. I could not afford a home if I was working in Saskatoon (what ‘opportunities’ there were for me upon graduating last year were offering about 1/3 what my compensation is now). As multiple people have stated on this board, wages are not going up in Saskatoon. I don’t see Cameco expanding, TD setting up a new head office in Saskatoon, or Maple Leaf even sticking around. There is nothing fueling much of this growth but good old fashioned speculation. People who don’t see this and think that we’ve passed some sort of new reference point are going to be hurt. Have I mentioned that I see two more rate hikes coming down the pipe from the BoC this year alone?

  Again, not trying to come across as being down on the city. Saskatoon has some amazing potential, but home prices jumping 50% in a year is not going to utilize that potential. I still have no idea why Calvert insisted on coming out here and advertising the benefits of Saskatchewan to Albertans. Why not start with keeping the talented, educated young people you have who are eager to work and build an economy, as opposed to trying to lure back the middle aged, affluent people who are looking for an early retirement and a lakefront cabin?? Not trying to come across as crass, just don’t tell other people to ‘shut up’, if you’re unaware of the facts behind what you’re talking about.

• Johny
  April 7th, 2009 at 2:25 PM

  Exactly what I wanted to say, it’s just too hot outside to write that much. Well put and bang on Warren.

  J.

• Warren
  April 7th, 2009 at 2:26 PM

  Thanks Johny, it is ridiculously hot here too, but I’m hiding out with all the windows and blinds closed. Where are all the clowns now who like to say “what global warming” when it’s snowing and the middle of December, now that we’re breaking temperature records for heat across North America??

  Thought of this little fact that further rips to shreds the very idea of comparing “affordability indexes”. It’s a given fact that the mean household income in Calgary and much of Alberta is higher than it is in Saskatoon. As I found out earlier today, it’s also 37% higher in Regina than Saskatoon. But you can’t necessarily compare an affordability index of 40% with another affordability index of 40%.

  Let me take this to extremes to illustrate my point. Let’s ignore taxes and assume that everything is after-tax dollars. If you make $10,000 a year and your housing expense is 40% – you’re screwed. If you make $10,000 a year and your housing expense is only 10%, you’re still screwed – you just cannot live off of $10,000 a year no matter how small of a portion of that goes towards housing (I know that some people do, and how they do it amazes me – more power to them, but in my mind you cannot “live” off of that little income).

  Now let’s say that you make $1,000,000,000 a year (yes, 1 billion dollars, I said that I would take this to extremes to illustrate my point), and your housing expense is 40% a year – you’re laughing. If you make a billion dollars a year and your housing expense goes to 70% a year, you’re still not going to break a sweat as you can do a lot of living with the remaining $300 million.

  The very idea of an affordability index assumes that everything is a variable expense; if housing goes from 40% to 50%, then something else will just give up that incremental 10%. But much of life isn’t variable. Maybe you could send a note to the CRA in May telling them that you’re paying 10% less of your income in tax this year because housing costs you 10% more – but I don’t think the CRA would find it very funny. There are basic fixed costs (groceries, transportation, clothing, etc) that you cannot continue to reduce as a percentage of your pre-tax income to zero. But as your income is greater and greater, those things take up a smaller and smaller portion (unless you start substituting caviar for cheez whiz and a bentley for the toyota), leaving you with more disposable income which you can spend on whatever you like – for some people, what they like is housing.

  So again I’m sorry Sam, but you just have no clue what you’re talking about. Affordability is not affordability is not affordability. When you start hearing about “the dark side of the boom” and people being pushed out, you should realize that something is suspect.

  And I’ve been reading more and more of this blog Norm, great work! You seem like a very intelligent, neutral individual. Some people are bulls, some people are bears, but that doesn’t mean that they can’t carry on a conversation, which you understand and try to facilitate. Increased knowledge about the market is never a bad thing, so thank you for this opportunity for all of us. I do have one question for you though. If there were a correction (and I’m not trying to get into an argument with anyone about there being one – I’m just asking hypothetically “if” there was one), are you worried at all about a backlash against local realtors? People blaming you for their own (possibly) poor judgement? Sort of like how everyone loves their brokers and investment agents when the stock market goes up…but whenever the stock market goes down…

  Keep up the great blog!

• Alex
  April 7th, 2009 at 2:26 PM

  Great summary Warren.

  Just what kind of developing province tries to eject their youth and invite a highly materialistic demographic? To me, it seems like Lorne is just trying to create his own little party province. I wouldn’t put it past him as he appears too “holier than thou” to say anything about the negative effects.

  I’d like to pose a very interesting question that just occurred to me now.

  Has there ever been statistics indicating this happening in the past? Outside of all the averages of the entire country and other manipulative figures, has Saskatoon (and other parts of Saskatchewan) boomed like this only to cool off in a big way?

• Norm Fisher
  April 7th, 2009 at 2:27 PM

  Alex,

  I’ve only been in the business for 14 years so I don’t have a lot to go on prior to that. I can say that I am accustomed to seeing increases almost every year but they more closely match what we typically see for inflation. I have spoken with agents who have been in the business as long as 50 years and none have them have ever seen what we’re seeing now. It’s unprecedented for this area.

  Warren,

  Some excellent arguments on the topic of “affordability.” Page 5 of the RBC report at http://www.rbc.com/newsroom/pdf/20070615housing.pdf shows some numbers which are specific to Saskatoon. While the graphs would indicate that Saskatoon is (or was) still more affordable than Calgary, I have to agree that the whole story is not told in these numbers. It doesn’t take a rocket scientist to understand that people earning $700 per week are going to have some challenges financing a $250,000 home. Even if a household has two such incomes, it’s going to be difficult qualifying for the mortgage especially if there is other debt.

  I would also point out that this particular survey only looks to first quarter numbers and I expect that we will see further erosion over the second quarter. Prices continued to increase sharply in Saskatoon over those months, while the Calgary market was cooling off some. New surveys may show Saskatoon as one of the least affordable. Not something that’s exciting for me, but I think it’s probably the reality.

  The prices that we’re seeing now are probably sustainable for the short term if people continue to migrate this way, bringing along their equity. Eventually though, I think that prices have to be supported by incomes which are typical for the area. We need to see some real growth in that area to see house prices being sustained for the long term.

  Your question regarding liability is fascinating to me. It is often a topic of discussion in the real estate community and I’m glad you brought it forward. Yes, this is a large concern, but probably less for me than most. I have employed certain risk reduction techniques which pretty much eliminate the concerns which I might have personally. Most here will be surprised to learn this, I’m sure. I basically stopped representing buyers around the middle of February. Most of the work I’ve done since that time has been with sellers. I suggest to most of my prospective buyer clients that they might want to wait, especially if they already own a home. Though I’ve had dozens and dozens of inquiries from out of town buyers, I have not accepted any invitation to assist them. If I find myself in a position where I feel I have to represent a buyer, I try to take great care to educate them on the market, always point out that anything can happen, and always discuss appropriate due diligence clauses. Since that point in February, I’ve represented two purchasers. I have a third in the works right now. All were local buyers and all of their offers contained appropriate conditions, including home inspections. The home inspection thing is my biggest concern over the long haul. I suspect that many buyers will eventually learn that they’ve purchased a lemon. If their agent has advised them to waive this clause they may find themselves as a prime target for litigation.

  I have been fortunate to have been asked by many sellers to market their properties this year so that I can still earn a living. I love that end of the business and following the guiding principal of “protect and promote the clients interests” is much easier when representing a seller in this market. I’m afraid that I don’t have what it takes to work with many buyers right now. I am confident that if, or when the poo hits the fan I’ll be able to watch it from the sidelines with my reputation intact.

• Warren
  April 7th, 2009 at 2:27 PM

  Norm:

  Great feedback, you’re continuing to come off as an intelligent class act. The closer and closer that I follow the shenanigans south of the border, the more my question to you is fascinating me. Now that people are actually getting hurt (news flash: bankruptcies and foreclosures suck – who knew??) of course there has to be someone to point the finger at. Apparantly nevermind what my grandmother used to say that when you point a finger, three point back at yourself. Luckily (for your profession), it is not seeming to be pointed at the realtors so much as it is at the lenders in the United States. If I hear the term “predatory lending practices” one more time…

  I’m torn on the issue. Don’t lump me in with Alex (please, really, don’t lump me in with Alex), but as my father taught me “A fool and his money are soon parted.” I’m the type of person who will spend a couple of nights researching what refrigerator to buy. My television took me two and a half months to decide. So I can’t help but not empathize very much with people who dive into the biggest purchase decision of all time, not having done any research on the issue. I can’t count the number of people I know who have purchased a home and don’t even know what the bank of canada’s prime interest rate is (I’m seriously not making this up!!). Hint: it’s kind of important to your purchase.

  On the other hand though, I know of some realtors (especially on this side of the border) who were telling young people this spring “If you don’t buy now, you’ll never be able to afford a home”. Now if you’re a young couple just starting out and someone tells you that you’ll never be able to afford a home for your family (and you don’t know any better) – that’s a pretty scary thought. That’s playing with people’s emotions and that’s just wrong. I’m not going to get in to how if average joe couple can never afford to buy a home for their family, the entire housing market would grind to a halt as middle aged homeowners would never be able to sell their properties and therefore never be able to move up to a larger home. I’m just going to say that that statement “Buy now, or you’ll never own” is dead wrong. Period.

  So while nobody wants to see people out on the street and bankrupt, the market cannot reward stupidity and irrational risk taking. If I put zero down into a margin account and short sell stocks (which no broker will ever let me do, but that’s not the point), and lose a bunch of money, nobody will care. My decision, my risk, my fate. But if I put zero down on a home, am forced to sell for whatever reason, and lose a bunch of money; suddenly everyone is concerned and the government should form an inquiry into what went wrong. It’s an asset people, it goes up and goes down in value. And it’s one of the most illiquid assets you’ll ever own, so week to week and even year to year fluctuations shouldn’t impact your decision in the slightest. It is a home for your family first and foremost.

  But I am digressing. I was just very refreshed to hear your honesty Norm. I think that you’re taking the smart play here, and I think that if things do go south, you’ll be well insulated against any sort of backlash. At the end of the day (as you will agree) word of mouth, good or bad, is the most powerful advertising a realtor has. You’re protecting yourself against any possible bad word of mouth.

  You mentioned being fortunate that you have had enough sellers come to you to keep your livelihood going, and I must admit that I too have felt very fortunate with the events in my professional life this past year. I think that it’s too easy for many of us to see things from a more privileged point of view. Lest we forget how we might be feeling and what we might be doing if we were not so lucky. So whether my views are right or wrong, I can afford to wait the Calgary market out a bit and see where it goes. And you can afford to alter your business strategy and still serve your clients. We should both count our blessings.

  I’m very interested that you value the home inspection so much. So is this getting brushed aside by buyers because in the time it takes for a home inspection, the property will already be sold to someone else who doesn’t require an inspection? Do you see this lack of research being what will burn many of the Alberta Donald Trump’s? I’ve really never thought about homes for sale being lemons. Perhaps sight unseen isn’t all it’s cracked up to be, I guess.

• Alex
  April 7th, 2009 at 2:27 PM

  Warren,

  There’s that lump word again…

  I am one of the young people NOT buying, how bad could I possibly be? I’m taking the most sensible route with all of this and making sure that a current decision doesn’t shipwreck me for a very long time!

  Either way, you still have lots of good things to say, despite perhaps your desire to not seem sympathetic to my points. At some point, you will have to realize, I shoot pretty straight!

• Norm Fisher
  April 7th, 2009 at 2:28 PM

  Warren,

  Thanks. I appreciate the kind feedback.

  You’re absolutely right on the point of “you’ll never be able to afford a home if you don’t buy now.” That could be translated to mean, “I’ll never be able to afford my home if you don’t buy a home from me now.” As you suggested, the market has to find that point where young people, like Alex can afford to buy a property. You need first time buyers participating in the market or everything falls apart. We are going to have challenging times like these but eventually the market will find some balance. It has to.

  Sadly, the home inspection seems to be falling by the wayside in this competitive real estate market. If I see multiple offers on a listings, most will not contain a home inspection clause. Buyers are trying to do all that they can to make their offer “attractive.” Over the last several years home inspection conditions had become “boilerplate.”

  To my way of thinking, a home inspection is another “research” tool which is useful for financial planning when buying a home. A very good inspector will not only report on the serviceability of home components but will help the buyer take a peek into the future. “This furnace is 17 years old. The typical life expectancy of a furnace is around 20 years. You will want to start budgeting for replacement of the furnace in a few years time.” Of course, there are also instances where a good inspector picks up on something which might suggest that the structural integrity of a property is threatened in some way. These instances are more rare but we do see them from time to time, particularly in very old homes.

• Alex
  April 7th, 2009 at 2:28 PM

  I had a high school teacher who said “listen, I know this doesn’t affect you now, but tuck this into the back of your mind somewhere for when the time comes…”

  Most students switched off at that point, but I listened!

  “…when you buy a house, get it inspected. Consider it part of the cost of buying the house. You will not regret it.”

  To this day, the idea of buying a house without an inspection is like buying a car without driving it. I have a friend who is buying a home in another city and he’s getting the infrared inspection done & everything. Getting an inspection is almost a bigger priority on his list than buying the house itself!

  Rightfully so.

  I would gladly shell out for the same when the time comes. Especially if I come to be lucky enough to buy in Saskatoon. Lots of houses here aren’t very well built, I just get an overall feeling of hurried, sloppy and careless work.

  People who are buying houses without inspections are exactly as foolish as they need to be to fall prey to this market.

  I would wager that the younger people incurring lots of debt would be the ones who get the home without an inspection. My mental image is just of an unassuming couple who are so scared of confrontation they’ll agree to anything.

  On the other hand, the higher bidders are likely hemorrhaging enough money that the seller will go along with the inspection just because of the extra money.

• Norm Fisher
  April 7th, 2009 at 2:29 PM

  Alex,

  I think most people, including me are “sympathetic” to your circumstances. I would love for you to own a home. Your “points” are sometimes a little over the top though. Nobody is going to support a re-drafting of the Canadian Charter of Rights and Freedoms to get you into the housing market.

  You’re a smart guy with some bright ideas. When you present yourself as a radical people become closed to your ideas and concerned about being “lumped” with you. Perhaps a slight shift towards the center would encourage more support and a discussion of ideas which are realistic and can actually work for you. Just a thought.

• Norm Fisher
  April 7th, 2009 at 2:29 PM

  Alex,

  That’s interesting and excellent advice coming from a high school teacher. It’s too bad that we don’t get more of this kind of instruction in school.

• Jason
  April 7th, 2009 at 2:30 PM

  There actually was just a story on CTV newsnet today about the dangers of not having a home inspection done. It documented a young couple out in Vancouver who had unsucessfully been trying to enter the housing market, finding that all of their offers had been rejected due to their condition of having a home inspection performed. Unluckily for them, the first day they moved in they found that they had a severe bat infestation and now their dream home has become a nightmare. I can’t imagine how many other couples have unknowingly inherited similar problems with their uninspected homes.

  Personally, with a purchase as huge as buying a house (probably the most biggest purcahse of my life!) there is no way I would buy it without having some sort of inspection done. I would rather pay more and have the inspection done for piece of mind and the sake of knowing what I am getting into than to take the gamble that everythings hunky dory with the property. Unfortunately for me and others who feel the same way about inspections, this “stubborness” likely plays a big part in our inability to secure a home. To be quite honest, I am always amazed that a bank would lend money to a person looking to borrow funds for a mortgage without that person having an inspection done, if for no other reason than to cover their own butts!

• Norm Fisher
  April 7th, 2009 at 2:31 PM

  Jason,

  One time I was showing a house, when all of the sudden my client started pointed and jumping up and down saying, “It’s a f’n bat! It’s an f’n bat!” He literally bounced down the stairs and out the front door. The thing was hanging on the top of the curtains. Quite gross actually, and I’m not one to get too excited about that kind of thing.

  Your position on home inspections is absolutely correct. At this time last year, most buyers wouldn’t have even considered buying a property without one. It boggles my mind that people are behaving so recklessly. And yes, banks would be wise to insist on them. They’d be smart to encourage them by covering a portion of the cost. The guy who buys with 5% down and finds 100 bats flying around in the evening is likely to bail and leave the lender and CMHC holding the bag.

• Wes
  April 7th, 2009 at 2:33 PM

  I have been living in saskatoon for almost a year and have come to the realization that I may never afford a house here.

  1.I work seasonal work which makes it hard to get a mortgage in the first place.

  2.I have a vehicle loan which also doesn’t help.

  3.Most decent homes now sell for 280,000 dollars or more.

  4.To afford a 300,000 dollar house, it is said that you will need to earn roughly 60,000 a year minimum (i earn a little better than half that).

  5.No one will consider offers with home inspection as a condition.

  6.I dont see overall wages climbing when there was such a fight to increase minimum wage to 9 (which it won’t reach until may of 09).

  7.I dont want to overpay now just for the house to plummet in value when this bubble bursts (which u know it will in this province).

  8.Gas and taxes continue to go up and it seems only members of the oil and resource sectors continue to make more money.

  Anyone making less then 20 dollars an hour (unless married with two incomes) will find it next to impossible to get a decent home, and i don’t plan on buying a 100,000 home in th worst part of the city.

  my two cents.