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Year over year increases in average Saskatoon real estate prices

I thought it would be interesting to compare the average selling price of Saskatoon homes during the month of May 2007 to those recorded in May 2006 in order to provide some perspective on Saskatoon's real estate price increases.


This first category compares units that would be classified as homes, both detached houses and condominiums. The selling price of Saskatoon homes shows an increase of 44% in May, over the previous May with the largest gains being shown in Area 2 and Area 5, up 64% and 65% respectively.


The average selling prices of Saskatoon houses jumped 37% in May to an all-time high of just over $240,089 from $174,797 for the same period last year. Again, Area 2 and Area 5 record the greatest gains at 62% and 61% respectively.


Saskatoon condos saw huge increases with the average selling price rising to $210,236 in May 2007 up a whopping 75% over the average in May 2006. Once again, Area 2 and Area 5 pull the prize for the largest increases at 81% and 94% respectively.


So why such a significant difference in the price gains when comparing condos to houses? Why do Areas 2 and 5 show greater gains when compared to the rest of the city? I think it all boils down to demand and there’s no question that Saskatoon condos have been a prime target for those wishing to build a bit of an investment real estate portfolio. Affordability is also a major factor for both investors and first-time buyers who may be scrambling to grab a little piece of Saskatoon for fear of being priced right out of the market. For those wanting to purchase an east-side home, Area 2 is more affordable than Area 1 and consequently, there are more buyers who can afford to live in Area 2, and fewer buyers who can reach the lofty average of $285,000 which Area 1 homes are fetching. For those who find Area 2 a bit of a stretch on the housing budget, Area 5 provides a solid alternative for a family home.


It seems unlikely to me that the disparity between house prices and condo prices can’t continue for the long term. I expect that we may begin to see condo price growth level out some while detached houses play catch up. In the coming months, we are likely to see the condo supply increase and some of the apartment buildings which have been purchased with “condo conversions” in mind will find their way back onto the market as single condominium units.


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


Norm Fisher

Royal LePage Vidorra

Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

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