The City of Cleveland is suing 21 mortgage lenders for damages that they claim to have incurred as a result of the U.S. sub-prime mortgage fallout. Cleveland Mayor Frank Jackson compares the resulting chaos to “organized crime activity on neighborhoods, cities and individual lives, sucking equity out” and says that city has been devastated by the negligence of lenders who signed off on deals they know they shouldn’t have made.

Cleveland, one of America’s poorest urban areas has seen over 7,000 foreclosures through both 2006 and 2007. In some areas of the city entire blocks of houses are abandoned, boarded up, and stripped of anything valuable. Most often, they ultimately meet a wrecking ball at the tax payer’s expense.

The City is claiming hundreds of millions in damages which result from lost tax revenue, the cost of demolished abandoned homes and the added cost of policing neighbourhoods which have become dangerous due to high rates of abandonment.

Mayor Jackson says, “We have to hold accountable those who are responsible.”

CNN 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

This is the lead statement in the general comments of a property first offered for sale on February 5, 2008.

Act quickly!! Offers will be accepted until February 20th 2008.

I have to ask myself, “Why should I act quickly?” It would seem to me that I have at least two weeks to get over there.

Most of us can understand a seller’s desire to leverage a seller’s market.

In my opinion, this is a good example of a seller shooting themselves in the foot, and most likely failing to achieve what they’re hoping to accomplish. It’s terribly difficult to generate a lot of excitement around a property that isn’t even really for sale. This property will be old news before the seller is anywhere near ready to look at offers. Many buyers will probably be reluctant to even give it the time of day.

Last year, while this was going on I did my best to keep my sellers focused on two day time periods. This is plenty of time to reach the most motivated buyers and create a bit of a buzz around a property. Any longer and time begins to work against you.

Read also: Seller’s will review all offers…someday

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

Attention bears! You may want to sit down for this.

Canada Mortgage and Housing Corporation (CMHC) released its first quarter Housing Market Outlook today, and Saskatchewan is featured in the “Provincial Spotlight.”

“During 2007, the Saskatchewan economy was quite buoyant, thanks to a strong natural resource sector, high labour force participation an improved migration picture. Saskatchewan has become an alternative to Alberta for economic prosperity and less expensive housing. Housing starts jumped from 3,715 units in 2006 to about 6,000 units in 2007, a 61.7 per cent gain, making 2007 the best performance in over 20 years. Modest declines in new home construction to 5,600 units are expected in 2008. The average MLS® price in Saskatchewan should rise by 31.7 per cent in 2007, 26.4% in 2008 and 8.2 per cent in 2009.”

CMHC estimates that Saskatchewan saw positive net migration to the tune of 14,325 people in 2007. They expect to we’ll see the province’s population grow by 10,200 in 2008, and a further 8,200 in 2009.

“Local Market Indicators” forecast the average selling price of a Saskatoon home rising 18% in 2008 from $232,755 to $275,000. This forecast seems inconceivable to those who have lived here for many years. They’ve watched the price of local homes double over the past five years and we’re all wondering how long it can go on. According to CMHC’s forecast, Saskatoon homes will increase a further 8% through 2009, to a whopping $297,500.

If CMHC is right, and they often aren’t, young Saskatonians will continue to occupy the sidelines in the Saskatoon real estate market as the gap between average incomes and average home prices continues to grow.

Read CMHC’s first Quarter Housing Market Outlook 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

When real estate prices see rapid and substantial change, it’s easy to lose sight of what that really means in terms of affordability. I thought it might be interesting to look back a few short years to show you how very different the Saskatoon real estate market looks today.

The two Saskatoon homes featured in this post sold approximately 3 years apart, following a reasonable period of time on the market.

The property pictured at left, sold at the end of November in 2004. It was on the market for about a month and sold for $212,500. Built in 1983, it’s located in Lawson Heights on a nice cul-de-sac featuring a wedge shaped lot of approximately 7,900 square feet. It has a double attached garage with a direct entry to the home. It also offers a fully finished and heated workshop in the back yard which measures 18’ x 24’. The house itself has 1,960 square feet of living space, if you include the 12’ x 20’ heated sunroom with large windows overlooking the well landscaped yard. You can enjoy the pleasant and private view from inside of the included hot tub, or from the back yard deck. Most of the flooring has been replaced in recent years. All but a couple of windows have been upgraded and there’s a brand new natural gas furnace as well. Additional features included a developed basement, a three-piece ensuite and walk-in closet, central air conditioning, central vacuum, water softener, home security system and a wood burning fireplace surrounded by custom built oak cabinets in the main floor family room.

The property pictured at right sold in December of 2007. It sold for the asking price of $219,900 after three weeks on the market. Built in 1960, the home sits on a large landscaped lot of approximately 6,700 square feet. It’s situated on a busy Mount Royal area street. There is no existing garage. It’s 851 square feet on the main level, but it does have a full basement which is easily ready for re-development. It has some nice upgrades including laminate flooring and new light fixtures, and a “newer” furnace, windows and exterior doors. There’s a nice deck, in a pretty yard. It also has a functional central air conditioning system.

When we look at changes to the “average selling price” we see some pretty shocking changes over a short period of time. This little demonstration puts a proper perspective on how much things have really changed in the Saskatoon housing market. I can agree with those who say that this market was undervalued three years ago but given that incomes in this area have experienced fairly marginal gains over the same period of time one can easily understand why a few voices are saying, “enough already.” Something seems to have gone horribly wrong in Saskatoon 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.

Norm Fisher Royal LePage Vidorra

This release came out today from Saskatoon Region Association of Realtors, Executive Officer, Harry Janzen.

2008 Housing Market Off to a Red Hot Start

No slow down in sight for Saskatoon’s real estate market. REALTORS® took a short break at Christmas time and are in full swing for 2008. Residential unit sales increased 37% from last January with 300 homes being purchased.

$77,833,000.00 dollars of residential real estate was purchased in the month of January that number up 87% from January 2007 when only $41,618,000.00 of real estate exchanged hands. REALTORS® listed 360 homes in the month of January that number up 26% from January 2007 when 285 homes were listed for sale. Improved inventory levels are very welcome as we move into a strong spring market.

Consumers had 324 residential properties to choose from at the end of January that number up 19% from January 2007 when only 272 homes were available for sale.

The six month rolling average sale price was $252,810.00. The average residential selling price was an all time high at $259,444.00 up 37% from January 2007 when the average selling price was $190,037.00. The average selling price is derived by dividing the month’s unit sales number into the dollar volume of real estate sold for the month. The percentage difference should not be used unilaterally as prices do vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member.

The surrounding communities around Saskatoon are experiencing great market activity as well. Unit sales are on par for the month of January but the average selling price rose 61% to $222,882.00. Rural inventory was up 28% with 262 properties being available for sale as compared to 205 being for sale last January.

All indicators point to a very active spring market. The association’s forecast is for selling prices to increase at a moderate level in the first and second quarters of the year.

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