If learning that Saskatoon will be the economic growth leader in Canada this year wasn’t enough for you, check out this report written by Bank of Nova Scotia economist Adrienne Warren which sees Edmonton and Saskatoon homes as the most “overvalued” in Canada.

Warren’s report indicates that Canadian house prices have “deviated from historical averages” by 8% this year while Saskatoon has deviated by 21% and Edmonton prices have increased 25% ahead of historical norms.

Read the Globe’s 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

In a report titled, “Migration Drives Saskatchewan Housing Market and Economy,” RBC is predicting that Saskatchewan’s economy will grow by 4% in 2007, and 3.6% in 2008, outpacing the Canadian economy and all but two other provinces.

“After ten years of declining population, the province is enjoying its largest migration surge in 25 years,” said Craig Wright, vice-president and chief economist, RBC. “It has sparked a sudden housing boom that can be seen by increased construction activity, a massive pop in house prices particularly in Saskatoon, and a lift to consumer spending.”

The report also says, “caution is warranted regarding the sustainability of house prices” noting that it’s far too early to call this migration shift permanent.

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

Norm Fisher

Royal LePage Vidorra

Housing affordability deteriorated across Canada during the first quarter of 2007, and most sharply in Saskatchewan according to RBC’s Housing Affordability survey which was released today. It probably comes as no surprise that Saskatoon wins the prize for the highest levels of change in the affordability measure when compared to the last quarter of 2006.

It is important to note that Saskatoon and Saskatchewan are still among the most affordable places in Canada to own a home. Only the Atlantic Provinces and Manitoba proved more affordable than Saskatchewan. Also, keep in mind that this report examines affordability based on data gathered to the end of March 2007. We can expect to see further erosion over the second quarter as prices of Saskatoon homes have continued to increase at a rather rapid pace.

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

Norm Fisher

Royal LePage Vidorra

The CanadaWest Foundation just released a report titled, “Urban Quality of Life and Urban Growth” which is based on survey responses gathered through interviews with 3,500 respondents in seven Canadian cities.

It seems that the highest “quality of life rating” was found right here in Saskatoon where close to 90% of those surveyed rated the local life as “good” or “very good.”Personally, I didn’t see what I’d consider being remarkable differences from one city to the next in this particular category, but one does get the sense that Saskatchewan people are a little more optimistic about the future when compared to respondents from other cities surveyed. Almost 58% of Saskatoon residents expect that quality of life will improve even more over the next five years, a stark contrast when compared to Calgarians who don’t seem to hold much hope for future improvements.

The responses measured in this study include;

The current quality of life in the city;

The current quality of life in the city compared to five years ago;

Expectations for quality of life in the future;

The attractiveness of downtown;

Protect historic buildings;

Population growth;

Population size; and

Population diversity

My discovery of this report was a timely coincidence.

I had just been reading an article about Saskatoon on an Alberta bubble blog in which one commenter, Groucho, bashed the crap out of Saskatoon.

Following a visit to both Saskatoon and Regina Groucho says, “People jaywalk like crazy all around you…the homeless all have bicycles…Saskatoon and Regina both have a lot of poor people (all riding bikes, of course) A lot of drugs and alcohol problems. It looks like a ghost town in some places…every single house we drove by has an alarm. Apparently they have a lot of crime there…there really is no culture to speak of…I don't want to bash Saskatoon and Regina here, but cheaper housing does not always equal a better quality of living.”

Well, thank you for restraining yourself and not bashing us!

It’s rare that I hear such a critical and condescending review of Saskatoon from anyone who has actually been here. You have to wonder if this guy actually found Saskatoon. Fortunately, he seems to have found his way back home.

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

Norm Fisher

Royal LePage Vidorra

Saskatchewan Premier Lorne Calvert says that his government is “gearing up” for another advertising blitz in Alberta to promote our province as a great place to live, according to a front-page story in today’s Star Phoenix.

While it’s hard to argue that a province shouldn’t promote its benefits abroad, someone seems to be unaware of the fact that Saskatoon home buyers are reaching their wit's end trying to find a good home to buy. Many have made offers on a number of properties, often tens of thousands of dollars above the asking price, and they still find no love.

MLS® housing inventory dropped to a critically low level of approximately 250 listings by the end of 2006. Today there are 249 single-family homes and condos on the system, most of those already conditionally sold. We’re seeing sharp price increases in every category of housing with some increasing as much as 70% since the start of the year.

My question to Mr. Calvert? Where are we going to put them when they get here sir?

Somehow, it just seems like the wrong time to be “gearing up” with this particular campaign. Let’s hope that the government updates its creative message, at the very least. Premier Calvert’s claim, “If you have any home ownership in Calgary these days, you can sell here, buy a home in Saskatchewan and be free and clear with your mortgage, likely own a cottage, and maybe one of two rental properties” is getting a little old.

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

Norm Fisher

Royal LePage Vidorra

Dwight Percy has an interesting article in the business section of today’s Star Phoenix titled, “High local housing prices are still below average” which is definitely worth reading.

Percy points out that while Saskatoon house prices have seen sharp increases over the last quarter, local homes are still trading well below the national average of $294,880 reported by the Canadian Real Estate Association at the end of February. The average selling price of a Saskatoon home topped $200,000 for the first time in March.

He asks, “Does it make any degree of sense that this market sits at only about two-thirds of the Canadian average?”

He makes some interesting points. If his prediction is accurate, the average price of a Saskatoon home will have doubled in just two years. The idea may have seemed outrageous just a few months ago but one now has to wonder given the momentum which this market seems to have. Consider that the averages we’re seeing now are likely skewed down by a large amount of activity in the entry-level condo and house market and the possibility seems even more realistic. It seems to me that there are a large number of pretty “average” homes trading at or above the quarter-million-dollar mark already.

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

Norm Fisher

Royal LePage Vidorra

The Saskatoon real estate market took off like a rocket in March producing bidding wars that can only be described as ridiculous for anyone who has been working in this business for any amount of time. By month-end, almost 65% of properties sold were selling at, or above the list price. Average overbids were coming in around the $15,000 range and buyers were lining up to throw money at home sellers. An unfortunate sense of desperation hung thick as newcomers, first-time buyers and investors scrambled for a piece of the action.

Average selling times slid once again to just 16 days and the average price of a Saskatoon home (condo and single-family detached combined) took an incredible leap forward from $188,028 in February to $203,065 in March, marking the first time that the average ever topped $200,000 in Saskatoon.

An incredible 295 houses traded hands, at an average of $6,000 above the asking price. The average selling prices for Saskatoon houses jumped to $208,123 from $194,360 the month before.

The condo market produced 93 sales. Virtually everything that was offered for sale was subject to offers quickly. The average selling price spiked again to an unbelievable $189,275 from $158,924. Average selling prices exceeded average list prices by more than $11,000.

Considering that the average was below $145,000 in December, this is truly difficult to fathom. Condo prices are appreciating much quicker than house prices, which also feel out of control, and I expect that we’ll see some kind of correction between these two categories. I suspect this is happening because larger numbers of people are trying to get into the market at this more affordable entry-level.

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

Norm Fisher

Royal LePage Vidorra