Some have called him extreme, angry and bitter.

Some have called him a good-hearted soul with a social conscience.

MacLean’s, Canada’s national news magazine called him for an interview!

He is Alexander Trauzzi, also known in this fine online community as “Alex.” He joined us early on and he’s been a regular commenter on the Saskatoon Real Estate Resource Centre Blog ever since, openly sharing his concerns and frustrations over the changes which have been occurring in this city over the past year. Recently, he had an opportunity to speak with Jason Kirby, a business writer for MacLean’s and he is formally introduced to us in the opening paragraph of the current issue’s cover story titled, “Is it a bubble? Is it about to burst?”

This was not the Saskatoon Alex Trauzzi remembered.

A few years ago, Trauzzi, 24, had been drawn to the Prairie town for work and grew to love it. He met his fiancée there. And he vowed that after finishing college in his hometown of Winnipeg, the couple would return and buy their first home there. "We saw it as a great place for fresh starts," he says.

But when the couple moved back to Saskatoon earlier this year, Trauzzi scarcely recognized the place. The housing market was ablaze with bidding wars, double-digit monthly price gains and frenzied speculation. Modest bungalows that had sold for $187,000 in the fall of 2006 were by spring changing hands again for $280,000, without so much as a fresh coat of paint. It was insane. Trauzzi, a service technician, felt there was no way he could afford those kinds of prices for a starter home. So after just nine months, he fled back to Winnipeg where he bought a home earlier this month for slightly more than $120,000. Not a moment too soon. Even the Peg is quickly becoming unrecognizable thanks to real estate fervour. "I could easily turn around and sell my house for five or 10 grand more than I paid for it," he says, with a note of astonishment in his voice. "I don't know if there's a bubble that's going to burst or not, but if there is something that's going to happen, it's going to happen right across the country."

Trauzzi isn't alone in feeling anxious about the housing market. Across the country, the B-word is on the lips of Canadians.

You can find the entire text of the online version of this interesting story here. Whatever you might choose to call Alex, you certainly can’t call him a liar, or even a bluffer. He told us several months ago that he’d be out of here if the market didn’t smarten up. Now, he’s gone and it really is a shame that this educated young man and his fiancée felt that they had little chance of making a start here. Is Alex’s moving a sign of things to come? Have changes in the Saskatoon real estate market frustrated our young citizens to the point that they feel Saskatoon no longer offers them a future? Is it a bubble? Is it about to burst? Let’s talk. I’ll start. First, let me say that I think this is a timely, well written story. It’s a story that we should all be interested in talking about. The answers to the questions posed will impact us all regardless of whether or not a bubble exists. Having said all of that, I’ll point out my complaint about the story, only because complaints seem to be better discussion starters than compliments. J MacLean’s directs us to the Demographia Housing Affordability survey to make the case that “house prices, even in some of Canada’s hottest markets, almost look like a bargain.”The report’s cover page tells us that the data used in the study is from Q3/2006. I wrote about the release of the study way back in January. Since then, U.S. housing prices have tumbled in some areas, the average selling price of a home in Canada is up at least 10%, and prices have increased 40-60% in some prairie cities. How is this study even relevant some 15 months later?

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 Vidorra

The “smallest house in Toronto,” measuring just 300 square feet is being offered for sale at $173,000. That’s $577 per square foot.

Sitting on a narrow lot which measures in at 7.25 feet by 113.67 feet, this little charmer has been completely renovated from top to bottom. It features a living room, a kitchen, a bedroom, a bathroom and a decent back yard.

I was most impressed by the initiative taken by the listing agents, Christina Lopes and Louise Ruggiero of Sutton Group Security Real Estate Brokerage. These two go-getters have enhanced their listing to the fullest on MLSOnline including a sales brochure and a virtual tour which offers eighteen still images and four 360 degree panoramic images.

It’s hard to find an agent who will provide such a rich presentation on house ten times the size.

The virtual tour for the property is here.

Tip of the hat to Matthew Collinge of Vancouver who originally posted about this property on his blog.

According to a Statistics Canada population report released today, Saskatchewan has passed the one million mark for the first time since 2001. The province’s population was estimated to have reached 1,003,300 by October 1, 2007 an increase of 6,400 people since July, making it the country’s fastest growing province. According to the report, the provincial population has been “on the rebound” since the fourth quarter of 2006 when it bottomed out at 986,900 people.

Interprovincial migration accounted for two-thirds of the growth and was primarily fueled by people who returned to Saskatchewan from Alberta.

Who doesn’t know someone who moved back to Saskatchewan this year?

Read the StatsCan release 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 Vidorra

It may be dirty, ugly and smelly but according to this website (no longer available), it also offers “Great bones, and a great location.”

Shocking as it may be, there’s something remarkably refreshing about the truthful approach that this agent has taken to marketing this property. Let’s face it, this is an ugly house and trying to convince prospective buyers that it’s anything but only serves to insult their intelligence. It’s not like they won’t notice once they arrive for a viewing. What’s the point in putting them through those hoops if they’re not open to purchasing a mutt? This forward approach also serves the seller by targeting the appropriate niche, and qualifying buyers. Assuming it’s priced properly, it should sell.

I can’t say that I’ve ever gone quite this far, but I can’t ever recall have a listing which would deserve such a tough description. I can tell you that it pays to be forthright in a real estate advertisement. Earlier this year; I listed a property which was built in the late 70’s and hadn’t seen an upgrade since. I started my ad by saying, “It’s not the prettiest house on the block and it’s definitely time for some upgrades but this 1,080 square foot bi-level is priced right and provides an excellent opportunity for an affordable home in a great family neighbourhood.” After a couple of days of pre-promotion, the home had 43 showings its first day on the market, attracted 16 offers, and sold for $27,000 more than the asking price. There’s obviously a great market for homes that need work. Why shouldn’t we let you know it when we have one for sale?

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 Vidorra

The Rental Market Report released yesterday by Canada Housing and Mortgage Corporation (CMHC) shows apartment vacancy rates in Saskatoon falling to a record low of just .6%, down from 3.2% last October. Saskatoon “Southwest” showed the largest number of available apartments and a vacancy rate of 2.1%. The six other areas measured in the report have vacancy rates as low as .1% and as high a one percent.

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.

Norm Fisher Royal LePage Vidorra

Note: The graphics in this post were updated on December 5, 2008 to reflect the final sale numbers as reported by agents for November, 2007. The graphics show the final figures while the commentary reflects the statistics as they had been reported as of the date of the original post.

The number of single-family detached houses and condominiums which were sold in November was up slightly from 270 units in October, to 281 in November. Unit sales increased by 36% compared to November 2006 when just 207 houses and condos traded hands.

Average sale prices for Saskatoon homes settled in at $257,915, up just a couple of hundred dollars from October, but 57% higher than you might have paid a year ago when the average came in at just $164,103.

The average selling time was up by four days from 22 last month.

The average selling price of a Saskatoon house took a bit of a dip from $268,724 in October to $261,233 in November but was up sharply from $165,971 in November of 2006. Total units sales came in at 212 compared to 160 last year.

Never ceasing to surprise, Saskatoon condos saw a fairly large jump in the average selling price from $223,259 in October to $247,721 in November. Last year at this time, the average selling price of a Saskatoon condo was $157,744.

A TD Economics “Housing Market Commentary” released yesterday describes Saskatchewan’s real estate market as “on fire” and forecasts the province as the home price growth leader across the nation for 2007 and 2008. TD is predicting increases of 28% in 2008 and 11.3% in 2009 which would make Saskatchewan the only province to experience double digit gains in either of the two years.

The report focuses on the growth of the average home price in Canada which has experienced double digit gains for three consecutive years, largely driven by massive increases in western Canada, and more specifically, Alberta. Going forward, TD says, “We expect Alberta’s home prices to grow close to par with the national average in 2008 and to underperform in 2009. And while Saskatchewan in currently on fire, it will likely follow a similar path in about 12 months time.”

What’s missing from this report is the “why?” No detailed analysis is provided to back forecasts which differ substantially from reports issued by RBC and Scotiabank who both described Saskatoon as “overvalued.”

Read the TD Economics Housing Market Commentary here

Read also: Saskatoon and Edmonton homes most overvalued

Read also: Is Saskatoon overvalued? Another economist says “yes”

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 Vidorra

The Saskatoon Region Association of REALTORS® (SRAR) released its statistical overview of the local real estate market for November today. These statistics reflect residential unit sales of all types which were reported as having firmed up during the month of November.

The average selling price of a residential property in Saskatoon declined slightly from the peak high of $255,613 recorded during October of this year and settled at $251,202, fifty percent higher than November of 2006 when the average was just $167,480. The six month rolling average saw a marginal increase to $249,957.

Unit sales last month increased 37% over November of 2006, with 316 properties trading hands. Buyers can take some comfort in the fact that total active listings were at 538 units at month end, up 48% over last November’s number of just 363.

Harry Janzen, Executive Officer of SRAR made a couple of comments which are sure to have Johny’s skin crawling. “Purchasing a home in Saskatoon is still very affordable when measured against markets such as Calgary where a single family home average price hovers around the $420,500.00 mark… All indicators point to a strong finish in residential home sales for 2007 with much optimism present for a strong start to 2008. REALTOR® members continue to receive out of province inquiries for investment opportunities in the Saskatoon market. Ex pats continue to return home with significant equity earned by selling their homes in Alberta and returning to Saskatchewan.”

My monthly review will follow in approximately 10 days time. Those numbers will be based on home sales which were actually contracted during November and will include a breakdown between single family homes and condominiums in the five major real estate trading areas of 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. Norm Fisher Royal LePage Vidorra