RSS

Average house prices rise by double digits in Saskatchewan

Royal LePage Q1-07 House Price Survey released this morning.


SASKATCHEWAN, March 29, 2007 – Strong in-migration and high levels of consumer confidence led to unprecedented levels of demand in Saskatchewan in the first quarter, causing average house prices to rise by double-digits in all surveyed housing categories, according to a report released today by Royal LePage Real Estate Services.


Based on the Saskatchewan markets surveyed, the average price of a standard two-storey home rose by 28.7 percent to $224,833, over the same period in 2006.The average price of a standard condominium increased by 26.8 per cent rising to $128,750, while the average price of a detached bungalow rose by 26.5 per cent to $203,667, year-over-year.


The economy in Saskatchewan remains bright, with employment opportunities in a variety of sectors.Increased demand for housing across the province has resulted in some typically less popular neighbourhoods receiving a lot of attention, as buyers extend their search outside of traditional ‘blue chip’ areas in order to satisfy their housing needs.Despite significant increases to average house prices in the first quarter, housing in the province remains among the most affordable in the country.


In Regina, the housing market got off to a brisk start in 2007, as in-migration to the city fuelled strong levels of demand.Listing inventory remained tight throughout the quarter, pressuring house prices upwards, resulting in a significant number of multiple offer situations.


Properties traded hands quickly throughout the quarter, with the number of listings available unable to satisfy pent-up demand from buyers.


“We have seen strong in-migration to Regina in the first quarter, particularly from the Western provinces, as people are drawn to the city for abundant employment opportunities, an excellent quality of life, and some of the most affordable housing in the country,” said Mike Duggleby, manager, Royal LePage Regina Realty, Regina.“Many purchasers who are relocating from Alberta or British Columbia have accumulated enough equity from their past homes that they can pay for a new home in cash, with money left over to purchase a recreational property.”


Move-up buyers were the most active purchaser group during the first quarter, with all areas of the city remaining in high demand. Washington Park, an area which has typically catered to low-income housing, saw an upswing in activity, as purchasers from outside the province snapped up inexpensive homes with the purpose of using them as income-generating rental units.


In Regina North, detached bungalows experienced the largest appreciation, with the average price rising by 12.8 per cent to $150,000 year-over-year.The average price of a standard condominium also rose by double digits to $95,000 (+11.8%), while a standard two-storey property rose by 12.1 per cent to $148,000, year-over-year.


In Regina South, detached bungalows showed the largest gains, rising by 11.9 per cent to $167,000, year-over-year.The average price of a standard two-storey home increased by 7.0 per cent to $171,000, while the average price of a standard condominium in the area increased by 5.8 per cent to $110,000 compared to the same period last year.


In Saskatoon, strong in-migration, particularly from the Western provinces led to unprecedented demand for housing in the first quarter.A steady supply of properties came on the market throughout the quarter, however listings moved through the system quickly and were unable to satiate purchasers’ demand.


Many former residents of Saskatchewan have been drawn back to the province by the abundance of employment opportunities in a variety of sectors and relatively affordable cost of living.The housing market in Saskatoon has also started to attract out-of-province purchasers, looking to invest in income-generating properties such as multi-unit apartment buildings, duplexes and condominium units.


“Saskatoon is typically a market which is characterized by slow and steady increases in average prices,” said Norm Fisher, sales manager, Royal LePage Saskatoon Real Estate.“The conditions which have emerged in the first quarter are typical of a large Western city.Momentum in the housing market seems to be picking up weekly, with well over half of all homes selling at, or above, list price.”


Demand for all housing types has been strong throughout the first quarter, with a particular strength shown in the condominium market, as many first-time buyers appear eager to purchase a home before prices rise outside of the range they can afford.Some areas that previously had been considered less desirable saw an upswing in activity in the first quarter, as some purchasers were forced to look outside their preferred neighbourhoods in order to secure a home.


In Saskatoon North, the average price of a standard two-storey home rose by 34.5 per cent to $265,000, year-over-year.Detached bungalows rose by 34.1 per cent to $240,000, while the price of a standard condominium rose by 33.9 per cent to $150,000 over the same period in 2006.


In Saskatoon West, the average price of a standard two-storey home rose by 41.1 per cent to $230,000, while the average value of a detached bungalow also increased, rising by 21.6 per cent, year-over-year to $180,000.


In the East End, the average price of a detached bungalow rose by 36.1 per cent to $245,000, year-over-year.The average price for standard two-storey homes also increased, rising by 31.0 per cent from the same period last year to $275,000.


In East Central, the price of a standard two-storey home rose by 39.8 per cent to $260,000, while a detached bungalow rose by 35.6 per cent to $240,000, year-over-year.A standard condominium also appreciated by 52.4 per cent compared to the same period last year to $160,000.

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

Read

Saskatoon real estate: Week in review (March 19-23 2007)

A full 53% of all residential sales reported to the Saskatoon real estate board for the week of March 19-23 sold above the asking price, with an average overbid of $14,456.


Once again, average selling prices exceeded average asking prices in all major Saskatoon real estate districts, except area 4, where the average selling price was just about $250 below list.


Total active listing of Saskatoon single-family homes and condos were at 234 units at the close of the week, about the same number as last week.



Some of the more notable sales include the following:


  • 1,080 square foot East College Park bungalow sells $41,000 over list at $245,000.
  • 1,040 square foot townhome in Erindale listed at $219,900 sells for $245,000.
  • 867 square foot condo in Lakeview listed at $107,900 sells at $140,000.
  • It’s kind of sad when the $20,000 overbids no longer make the “notable” list.


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

I met with one of my newer agents the other day to review an offer he had written for one of our clients. The offer was beautifully prepared and technically perfect. The buyer had left no doubt that they wanted this house offering a full $20,000 above the asking price. It was on Tuesday. The seller had instructed their agent not to present any offers before Wednesday at 8:00 pm.


I had one question for my agent, “What if this is the only offer which the seller receives?”


If you’ve been listening to people talk you might believe that “everything is selling for more than the asking price.”Well, guess what. Everything is not selling for more than the asking price. Last week, 52% of the sales reported sold at or below the asking price.I’m hearing of more instances where the seller only receives one offer and if yours is the only offer on the table, you’re probably not going to feel very good about offering thousands of dollars more than they are asking.


If I were representing a buyer in a purchase, I might suggest that we wait until the offer presentation is almost imminent before a decision is made on the offer price. Then I might ask the seller’s agent if they have received other offers on the property. They don’t have to tell me but they almost certainly will if there are other offers. If they respond by saying, “my seller has asked me not to disclose the existence of other offers,” my client and I will have to make the call as to what that means. On the other hand, we may hear, “yours is the only offer at this time.” Perhaps that might influence the price which my client is prepared to offer. It would certainly influence the advice which I would offer the client.


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

Providing analysis of what has happened in the Saskatoon real estate market takes a lot of work, but reviewing statistics and crunching numbers normally produces a pretty accurate result.


Predicting the future of a market is much simpler. You review what’s been happening lately, evaluate factors which may impact the market, fill your press release with all kinds of cool intelligent words and provided that you are smart enough to forecast early and waaaaaay into the future, sufficient time will pass and people will forget whatever you’ve said by the time your prediction fails. Simple!


Being correct in a market forecast is much more difficult. I could report a number of failures of my own, but I won’t, because this is my blog. :)


Today, I happened across a copy of the RBC Housing Forecast for 2007. Written sometime over the early months of this year, the report includes some real gems which drive home the point that even the brightest minds that economics can produce sometimes can’t see the forest for the trees.


“The western provinces continue to show signs of price growth topping out with British Columbia, Alberta and Saskatchewan all likely having reached pinnacles in the pace of price appreciation.”


Don’t you wish they could have told us that in January?


With respect to Saskatchewan specifically, the report indicates, “…we anticipate housing affordability to ameliorate in the coming quarters as markets continue to cool” (ameliorate is an impressive word which economists use to say “improve”. :)


Let’s hope that things don’t “continue to cool” at this pace all year long.


What’s most startling about this particular “forecast” is that it was just released last week.


Apparently, it’s hard to get an economist’s attention once his work has begun.I’ve always understood that they can’t see what’s going on in Saskatchewan from Toronto, where I suspect this report was prepared, but come on; the Saskatoon real estate market is so damned hot they should be able to feel it out there.


As for me, I anticipate that current market conditions will persist unabated until housing inventories begin to ameliorate and buyers begin to demonstrate substantial resistance. You can take that to the bank.


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

Saskatoon real estate: Week in review (March 12-16 2007)

Saskatoon home buyers found little relief from pressured prices this past week. While the percentage of homes sold at or above their list price declined from 70% to 61%, the average overbid in instances where homes sold over list price increased to $14,155 from $12,144 the week before.


Area 4 had the lowest percentage of over list sellers with 60% of homes selling at a bit of a discount. The average overbid dropped from $9,100 to just $5,917.


Area 5, where housing inventories remain tightest, showed an average overbid of $18,767, a big increase from $13,975 the week before. Here are the numbers.


One doesn’t have to look far to see frustrated home buyers and exhausted agents.I can’t help but think this market is taking its toll. A number of buyers wondered out loud if they should just give up as their continued efforts to get into the Saskatoon housing market continued to deliver no results.


I am also ready for a little relief but there seems to be no end in sight. There are 236 active MLS® listings of condos and houses on the market today, which I believe is a record low.


Anyone who is actively looking right now knows that the majority of those have conditional offers on them.



I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

It’s easy to get swept up in the excitement of this booming real estate market. If you’re not careful, you can miss some really important stuff.


Some people are really hurting.


He’s here. She’s there, with the kids. They can’t find a home, but they have to be out of the one they currently own in less than a month. They’ve tried hard, sometimes bidding up to $20,000 over the asking price. Someone always seems to outbid them and the next home that comes on the market always seems to be more money. They don’t know where they’ll end up.


Meantime, investors are sending money from all over the country. They all want a little piece of the Saskatoon real estate action.  It's the "next Calgary," don't you know?


Don’t get me wrong. I don’t resent you and I recognize your right to invest in this community.I just know where I want to focus my efforts right now and it’s not on spreadsheets.


If you want to talk cap rates, income and expenses, and property management, please, call another agent.  I’ll be busy helping someone find a home.


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

Spring is in the air, and Saskatoon home buyers are definitely taking their real estate seriously this year. The average days on the market fell sharply from 26 days in January to just 20 days in February. Many of the better homes and condos were sold in bidding wars and by month-end, over 50% of the new residential listing inventory was selling at, or above the asking price. Prices were somewhat slow in reacting given the “heat” on the street. The average price of a Saskatoon home increased to $188,028 from $183,971 in January (condos and single-family detached homes).


The price of a house or single-family detached home inched up to $194,360 from $190,652 in January.


The condo market continued at a crazy pace. The average selling price of a Saskatoon condominium lost a smidge to $158,924 from $161,279 the month before. The average in December was just $144,363 so they remain up fairly substantially year to date. The average selling time in the condominium category plummeted to just 11 days and the average selling price actually came in higher than the average list price.


 I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

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


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


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


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


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


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


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


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

Saskatoon real estate: Week in review (March 5-9 2007)

The Saskatoon real estate market continued at a frenzied pace with average sale prices exceeding average asking prices in every area of the city. A full 70% of the 82 residential sales reported to the Saskatoon Multiple Listing Service® sold either at or above the asking price. The average “overbid” which was recorded in instances where a home sold above the asking price increased substantially to $12,144 from $6,950 the week before. Here’s an overview of the numbers.



Notable sales from last week include:


  • Lakeview condo sells $29,000 over list price at $132,000.
  • Lakeview bungalow sells $30,100 over list price at $218,000.
  • Erindale townhome sells $30,100 over list price at $210,000.
  • City Park two and one-half storey sells $41,100 over list price at $261,000.
  • City Park bungalow (720 square feet) sells $30,100 over list price at $210,000.


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

I really got a chuckle out of this story and couldn’t resist sharing it.


It seems that a British Columbia woman has been sentenced to serve two years of probation in Saskatoon after she pleaded guilty to seven counts each of credit card fraud and possessing stolen credit card data, one count of theft under $5,000, two counts of breaching an undertaking and two counts of failing to appear.


A judge ordered her to “board a bus” and head for Saskatoon. Apparently, he wants her as far away as possible from her former boyfriend and he thought Saskatoon would be the perfect spot for her to begin addiction treatments and rehabilitate herself.


Saskatoon really is a great place to live. You can’t help but wonder what the rest of the world thinks when they start sentencing people to live here. 


Norm Fisher

Royal LePage Vidorra

Read

Canada Mortgage and Housing Corporation (CHMC) is predicting that the price of resale homes in Saskatoon will continue to rise through 2008. Citing lower inventory levels, an increase in demand, and low mortgage rates CMHC expects to see the Saskatoon resale real estate market maintain a “brisk pace” through 2007 and 2008. According to the government housing agency, several factors will play a role in maintaining the growth trend which Saskatoon is experiencing.


  • Low vacancy rates in rental properties
  • Pressure on rents resulting from increased demand and low supply
  • Employment and earnings gains will continue to attract people to the area
  • Escalating prices in Alberta will discourage some from seeking opportunities there
  • Large equity gains for Saskatoon home owners will encourage people to upgrade to more expensive homes
  • Escalating construction costs for new homes will continue to make resale homes attractive


Yesterday, Scotiabank released its annual Canadian Real Estate Trends report. They note that “Saskatoon has the tightest housing conditions in Canada” and predict that while there will be some cooling off in many areas of Canada they “anticipate pockets of buoyancy in housing markets across the country in 2007, including Saskatoon…”


I’m always happy to answer your Saskatoon real estate questions. 


Norm Fisher

Royal LePage Vidorra

Read

It’s starting to look like spring has arrived. Following a winter with precipitation levels which were 40% above the average, and with plus zero temperatures predicted for most days over the next couple of weeks, it’s about to get wet. The City of Saskatoon has issued a warning that a little preventative maintenance is in order if you’d like to keep the spring melt-off from ending up in your basement.


Here are the tips they’ve provided to prevent a basement flood.


  • Remove snow from around your foundation and window wells.
  • Most lots drain along the outside edges. Remove snow from these areas.
  • Keep the snow in your yard because shoveling it onto streets or lanes could block drainage.
  • Clear snow and ice from around the bottom of your downspouts and extend downspouts at least two metres so water drains away from your foundation.
  • Where possible and safe, help clear snow, ice, and debris from the catch basins in your area.
  • Check your roof and eaves troughs for excessive snow.
  • Consider hiring a professional to clear snow from your roof.
  • A roof rake may help you to clear snow and debris from the edge of your roof.
  • Consider using sandbags to block water from entering low lying areas besides your foundation.
  • If water is getting close to your foundation, use an appropriate pump to drain it to the gutter or back lane.
  • Please use all equipment properly and follow safety guidelines.


Best wishes for a dry spring.


Norm Fisher

Royal LePage Vidorra

Read
The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.