You might say that residents of Saskatoon’s Nutana area have their “shit in a knot” over proposed plans to build a new sewer lift station in Rotary Park and who could blame them. The idea of dealing with raw sewage in your back yard isn’t exactly appealing to anyone. City administrators are recommending council approve plans for the construction of the new lift station near the Senator Sid Buckwold Bridge in Rotary Park.

It seems that there are concerns about the ongoing viability of the existing lift station located across the river in Victoria Park. It’s been in operation for close to a century and the underwater pipe which transports sewage across the river hasn’t been inspected since 1911. City administrators favour the new location because the estimated cost comes in about $600,000 lower on that side off the river.The annual cost of operation will also be lower by approximately $15,000.

The new lift station would include public restrooms and the city plans to landscape to prevent the station from becoming an eyesore. Odour control equipment would be installed in an effort to minimize foul smells but it’s doubtful that it could be eliminated totally.

Councillor Charlie Clark who represents the area on City Council says he will not support the move.

Councillor Pat Lorje who represents Riversdale where the current lift station operates is fully behind the change. “Words fail me,” she said. “I understand the ‘not in my back yard’ syndrome….when you have professional engineers recommending a specific location, they’re not doing it for frivolous reasons…I don’t think it will have that large of an impact on the neighbourhood.”

I could go either way on this, as long as they keep it operating in a public park. :) Sheesh!

Norm Fisher

Royal LePage Vidorra

If you’ve spoken to a Saskatoon real estate agent lately, you’ve undoubtedly been left with the impression that the market is hot, and it certainly is. It’s very easy to lose perspective though because we most often hear the exceptional stories repeated.

You might have the impression that all homes listed are attracting offers in excess of the listed price and that’s simply not true. I thought I’d give you a bit of an overview of the sales activity from last week to give you a truer picture of what’s going on.

The following chart shows the total number of residential sales in each Saskatoon area (geographic definitions below) followed by the number of homes that sold below the asking price, at the asking price, and above the asking price.

The next chart shows the average list price, average sale price, and the average overbid where homes sold above the asking price.

Even I was surprised to find that over 50% of residential listings are still selling below the list price, though marginally. Fewer than 25% are actually selling above the list price. It’s very clear that on average sellers are receiving offers that are very close to the asking price but you can’t assume that you’ll need to pay more than the list for every Saskatoon real estate listing.

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

Norm Fisher

Royal LePage Vidorra

Over the past 16 years, Patrick Wolfe quietly purchased a block of decrepit residential properties, one at a time, in the Pleasant Hill area of Saskatoon. A wiser investor may have wondered what the hell he was up to. Few would have ever thought that his investment would be a key component in renewing the Pleasant Hill neighbourhood but last night his plan became clear as Wolfe saw his land sale proposal to the City of Saskatoon move forward in a deal which netted the savvy investor $1.4 million dollars, and a $365,000 donation receipt to boot. City Council approved a deal to purchase 29 properties from Wolfe with the intent to clear the land for use in a Pleasant Hill renewal project which will ultimately include new housing development, a much needed elementary school, some green space, and a possible community group space.

Earlier this month, Mayor Don Atchison, Premier Lorne Calvert, and National Revenue Minister Carol Skelton announced the details of a cooperative initiative between the city, the province and the federal government to begin some much-needed redevelopment in the Pleasant Hill area.  The renewal project will be funded through the Urban Development Agreement with $1.71 million coming from the City of Saskatoon. The province and the federal Department of Western Economic Diversification will each pick up $789,471 of the cost.

Negotiating the purchase of the only three properties on the block which are not owned by Wolfe is underway. Once complete, the wrecking ball will start to swing and some new life will find its way into the Pleasant Hill area.

Let’s hope that this new development provides an opportunity to rejuvenate a community that could really use a boost.

Congratulations Pleasant Hill residents.

Congratulations Mr. Wolfe.

Norm Fisher

Royal Lepage Vidorra

All of the declines in Saskatoon’s average selling price can be attributed to the category of single-family detached houses which dipped to $190,652 in January from their peak of $199,255 in December. The decline doesn’t really serve as an indicator that prices are going down, rather an absence of a few larger high-end sales which were present in the December stats.

Condos, on the other hand, took a massive jump forward on the price scale leaping from an average of $144,363 in December to $161,279 in January. This particular market is showing some real strength. It seems that consumers are feeling strongly that prices will rise and they’re willing to pay a hefty price in the condo market for what still feels like an affordable home. These units also appear to be a target of out of province investors looking to place money in Saskatchewan.

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

Norm Fisher Royal LePage Vidorra

Saskatchewan was a bright spot in Statistics Canada’s latest national Labour Force Survey, showing record employment numbers with 493,400 jobs, an increase of 22,600 over the past year. Close to 9,500 of those jobs were created in retail and wholesale while construction, transportation, and the resource sectors also posted impressive gains. The unemployment rate in Saskatchewan fell to 4.1%, the second-lowest of all Canadian provinces, and well below the national rate of 6.2%

Saskatoon created 10,800 of those jobs over the past twelve months.132,400 people are now working in Saskatoon. The local unemployment rate is just 3.4% down two full percentage points in the last year. Only Calgary and Victoria have lower unemployment rates.

Norm Fisher

Royal LePage Vidorra

You may have heard me chirp once, or even twice about a practice which is occurring all too often in this fast-moving Saskatoon real estate market.I’m talking about MLS® listings which magically sell before they’re even submitted to the MLS® system. It seems that every day there are several new listings which have been sold before most of the market is even aware that the homes are for sale. It frustrates the heck out of buyers who only want to have a chance to view a home and consider making an offer. It’s an out and out rip off for sellers who would like to sell their homes at the highest possible price.

I wanted to share an experience that I think clearly indicates how the market can work for both buyers and sellers when agents take their duty seriously and actually make an effort to provide a seller’s property with adequate exposure to a very hungry market.

I had listed an attractive property that would be considered to be in fairly high demand. Together, my seller and I arrived at a price taking into consideration both recent sales and other similar properties which were being offered for sale at the time. We completed a listing agreement on a Monday afternoon. Based on his motivation and the time frame in which he wanted to sell we agreed that the listing would be marketed as follows:

On Tuesday I would return to the home to take photographs. I would prepare a nice internet ad which I would post as soon as I completed it. I would follow that posting up with a mass email to more than 300 local real estate agents informing them that the property would be on the market the following day and that they were welcome to call to arrange an appointment to show the property to their buyer. On Wednesday morning, I would submit the listing to the MLS® system. That’s what I did. Here’s what happened.

• 579 people viewed the listing on the Internet.
• The listing was viewed 185 times on the Saskatoon MLS® system by other real estate agents.
• 23 viewings occurred between 11:30 am and 7:30 pm on Wednesday.
• I made or received 137 telephone calls through the course of that day, most of which were related to this listing.
• Several buyers expressed interest and more than one agent attempted to pressure my seller into accepting an offer before other buyers could see the home.
• My seller took my advice that it would be reasonable and fair to review offers later in the evening after the others had had a chance to see it and consider the home.
• At 8:00 pm, I presented 12 offers to my seller. Not a single offer was for less than the asking price.
• My seller accepted an offer which was well above the asking price, and a back-up offer which was almost as strong.

Happy seller, a happy buyer, exhausted but very happy seller’s agent.

Now, it’s important to me that you understand that I don’t see myself as a hero in this story. It seems to me that this is what should be expected of me as the seller’s agent. After all, agency law demands that the agent protect and promote the client’s interests and only the client’s interests.

Am I “the Donald” of Saskatoon real estate? Am I smarter than other Saskatoon real estate agents? No. This is not a terribly complicated strategy. I’ve used it and other similar strategies many, many times. Any agent who has negotiated more than a couple of dozen transactions knows that this approach or some variation of it would be effective for his or her client, especially in this market.

Delivering on your promises and actually doing what you’re being paid to do doesn’t make you special. It’s just the way that it should be, and that’s really all that I did.

Now, consider for a moment another approach that I might have taken, if I didn’t give damn about my client and I didn’t particularly care about the promise which is inherent in an agency relationship; to promote and protect the client’s interest. If that were the case, I could have slipped that listing into my briefcase where nobody but me would be able to see it. Then, I could have gotten on the phone and called the most motivated buyer who has contacted me expressing an interest in such properties. I could have quietly arranged a showing. That buyer likely would have made an offer which probably would have been decent, perhaps just a little lower than the list price. My seller, reasonable guy that he is probably would have accepted it. I would have pocketed a full commission.

Most likely, I would have had a happy seller and a happy buyer. My seller may have even patted me on the back for getting the job done so quickly and effectively. Sometimes, through the smoke and mirrors, you just don’t know that you’ve been screwed.

One thing would have been very different though, had I decided to go that way. I would have felt like a failure as an agent, unworthy of the trust and confidence that this client placed in me. I would have known that I could have done more for him, had I not been so interested in helping myself.

Do you have a home to sell? Make sure your agent understands that you expect him or her to be working for you, protecting and promoting your interests. There are many very professional agents working in this market who wouldn’t think of pulling such stunts. You just need to be sure that you’re working with one of them. You deserve no less.

Ask questions and hold your agent accountable. It’s really that simple.

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

Norm Fisher

Royal LePage Vidorra

Canada Mortgage and Housing Corporation (CMHC), Canada’s national housing agency has just released its “First Quarter Housing Market Outlook” forecasting what will happen in real estate markets across the country through 2007.

In an article titled, “Soft Landing for Housing Starts in 2007 and 2008,” CMHC predicts that housing starts will moderate in 2007, dropping to 209,500 from 227,395 units in 2006.

I read almost every report that CMHC releases and I’m not sure why, but most of them make me nuts! Perhaps it’s because they’re always wrong! Alright, I’m being a bit of a jackass here. They’re not always wrong, but they often fail to recognize what’s really happening in a market area.

I know as well as anybody how hard it is to predict the future and I have to come clean and admit that I have fallen flat on my face, at least once. JAt the close of 2005, I predicted the following year would see a marginal drop in resale units, and more moderate price increases, “likely in the range of 4-5%.”In fact, resale unit sales increased by seven percent and prices went up close to 11%.My bad. What I didn’t see coming was a significant improvement in net migration. So, with that out of the way, here’s what CMHC has to say about housing starts in Saskatchewan for 2007 and 2008.

“In Saskatchewan, the improving net migration, as well as the strong job market and robust income growth, bode well for housing demand. Total housing starts are forecast to decline slightly from 3,715 units in 2006 to 3,600 units in both 2007 and 2008.” Huh? Anybody else confused? I can only say that I hope CMHC has missed the mark this time. The City of Saskatoon recently announced that they will attempt to prepare 2,192 lots for construction in 2007.There are hundreds of lots ready for homes in Martensville, Warman, Clavet and other communities.I’m hoping we’ll see close to 2,300 to 2,500 starts within 50 kilometers of Saskatoon. 2007 has the potential to be a great year for Saskatchewan but we must have homes to put people in.

Here’s a comment I received the other day on another post.

“Hi, I have been looking on MLS for a suitable property for myself and my family in the Saskatoon area, there is a definite shortage of property and almost none that would be large enough for us. We were hoping to move to Saskatoon from the United Kingdom in the summer of 2007, but because of the shortage of suitable property, we may be forced to look at another province entirely. This is such a shame as I know that Saskatchewan is trying to encourage people in at the moment.”

You’re right Lynn; this is such a shame.

There are 237 active resale listings on the Saskatoon MLS® system today. Half of those likely have sales pending on them. You almost can’t buy a house in this city if you wanted to.If I were a home builder I’d have no problem building spec homes as fast as I could find the manpower and the money to put them up.

Housing starts are not going to decline in Saskatchewan in 2007.I’ll meet you back here in early January for a review.

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

Norm Fisher

Royal LePage Vidorra

Born just minutes before she was discovered and still sporting an umbilical cord, the girl was “red and wrinkled” and “her little hands were like ice,” said Lee Anderson who happens to be a registered nurse. The temperature was close to -30C (-22F) on Saturday morning.

According to the Globe and Mail, the couple called 911. Mr. Anderson explains, “After I said that we had a crying baby at our house, the operator said, ‘So what’s the problem with that,’ well, it’s not mine. I found it abandoned by my back door.”

An ambulance arrived at the scene within minutes. The baby is in fine condition and in the custody of the Department of Community Resources.

Saskatoon Police used dogs to try to track the person who dropped the child off but had no luck. They spent the balance of the day canvassing the area looking for clues as to how the child ended up at Anderson’s home.

Police remain concerned about the child’s mother and they are encouraging her, and anyone else who may know what happened to come forward.

The Globe reports that the Anderson’s had planned to shop for a new car on Saturday, which just goes to show you that you never really know what the day is going to bring.

Norm Fisher

Royal LePage Vidorra

Early bird tickets for the 2007 Juno Awards, which will be hosted in Saskatoon on Sunday, April 1st, go on sale this morning at 10:00 am. Anticipating a quick sellout of only 500 packages being made available, orders will be taken by phone (938-7800 or 1-800-970-7328) or they can be ordered online through Ticketmaster at www.ticketmaster.ca. The packages will sell for $197.25 with a limit of four per person. Each package includes entry to three events; the awards show (standing room), the JunoFest band showcase which will be presented on March 30 and 31 at various Saskatoon nightclubs and the Songwriter’s Circle happening April 1.

Individual tickets for the awards show go on sale February 10 at 10:00 am through Ticketmaster and will range in price from $80 to $150, with a limit of four being made available to each person.

This year’s Juno Awards is hosted by Nelly Furtado. Confirmed performers include rockers Billy Talent and Three Days Grace.

Norm Fisher

Royal LePage Vidorra

Until now, it has been just rumour and speculation that something fairly big was about to happen for the Pleasant Hill area of Saskatoon. Now, it’s official.

Mayor Don Atchison, Premier Lorne Calvert, and National Revenue Minister Carol Skelton have finally announced the details of a cooperative initiative between the city, the province and the federal government to begin some much-needed redevelopment in the Pleasant Hill area. The renewal project will be funded through the Urban Development Agreement with $1.71 million coming from the City of Saskatoon. The province and the federal Department of Western Economic Diversification will each pick up $789,471 of the cost.

The plan involves leveling 29 properties, including commercial buildings on 20^th Street between Avenue O and Avenue N, and the homes located on the 300 and 400 blocks of both of these avenues. Some cash will be invested in improving the infrastructure throughout the entire neighbourhood to bring it up to today’s standards for commercial and residential development.

Once the land has been cleared it will be sold to Saskatchewan Housing for $1 so that it can be developed for affordable housing. Mayor Atchison estimates that new development could pump $20 to $30 million into the Saskatoon economy.

There was no further word on much-needed improvements to St. Mary Community School, the venue for this special announcement; however, Premier Calvert did bring hope that a result may not be far off. “I know full well that there are plans in the works for the replacement of the school.”The land which is being redeveloped surrounds the school and community leaders are hopeful that a “community centre” can find a place in the plan.

This is the second major initiative undertaken in the Pleasant Hill area by the three levels of government. Last year, they funded the demolition of an old strip mall and a warehouse. The three parcels of land which were liberated through the project will eventually become home to Station 20 West, a multi-purpose development that is expected to be home to a public library, a grocery store, and various other area amenities.

Both of these initiatives will be great for Pleasant Hill homeowners who haven’t seen nearly as much growth in property values as most other areas in Saskatoon over the last decade. In 2006, the average selling price of a home in the area was under $70,000, while the average for Saskatoon topped $170,000.

Norm Fisher

Royal LePage Vidorra

January is not normally one of the biggest months for real estate. We’ve just been through the holiday season, blown a wad of cash and on top of all that, it’s damned cold. Normally, only the most motivated buyers manage to get out and look at homes. This January, they were out and the numbers indicate that most of them were motivated!

Sales statistics just pulled from the Saskatoon Real Estate Board’s MLS® system show a 60% increase in dollar volume for resale homes traded in January 2007 as compared to the same month last year. There were 219 homes which traded hands, up from 173 the year before. The average selling price of a Saskatoon home jumped 27% from $149,922 in January of 2006 to $190,037 this past month.

Total active residential listings stand at just 272 homes. That’s 46% fewer properties available now as compared to last year at this time. Look for more increases to come as buyers continue to fight for a place to live.

I’ll share a couple of real examples which I think give a pretty good indication of what occurred through the month of January.

Shorebird Watch is a condo complex that is being marketed in Lakeview. They offer 2 bedroom units of approximately 870 square feet. These units hot the market in May and were priced around $80,000 at that time. A series of small increases occurred throughout the coming months and they reached $90,000 by the end of the year. January brought two $5,000 increases to boost asking prices for these homes to just over $100,000.

Consider next, Pine Creek, a Jastek project in the Lakewood area offering townhomes of approximately 1,150 square feet. They’re very nice two-storey homes with open basements and the units which are selling today are scheduled to be completed in November. On January 13 these units were priced at $153,400 for a base model with no extras. On January 14 the prices rose to $158,400. Today, the same unit is selling for $169,400, an increase of over 10% during the month of January.

Of course, not all housing units will be affected to the same degree. Properties priced below the average selling price often go up quicker as entry-level buyers scramble to try to firm up a deal before they get priced out of the market.

Make no mistake, it’s a hot market! My advice to buyers? Be prepared to pay a little too much today at the risk of paying far too much tomorrow. You must be prepared to write an attractive offer if you have much hope of seeing it fly.

My advice to sellers? Make darned sure that if you sign an MLS® listing that the home actually makes it to the MLS® system.

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

Norm Fisher

Royal LePage Vidorra

The City of Saskatoon has approved plans to make 2,192 residential lots available to home builders and consumers who wish to build homes in 2007, provided that the manpower required to install water and sewer services can keep up with demand. The current plan has over 1,600 of those lots slated for single-family homes. In 2006 there were fewer than 900 single-family homes constructed within the Saskatoon city limits.

Council will vote Monday on a plan to allow the Builder’s Initiative Group, a coalition of some of Saskatoon’s largest builders to directly purchase 100 lots from the City. The remainder of them would be sold through a single-pick land draw process.

Alan Thomarat, executive director of the Saskatoon Region Home Builder’s Association has worked hard to lobby City Council and to gain support from other stakeholders in the Saskatoon real estate business, effectively arguing that the city can easily find willing buyers for 2,000 lots per year.No doubt, he’s pleased by this decision but he is cautious in his optimism noting that builders need some assurance that they can count on the city to move this policy forward in coming years. Contractors will need to feel confident that they’ll have work before making commitments to substantially build their labour force.

This is good news from my perspective. A quick check of the MLS® system today shows fewer than 250 active residential listings in Saskatoon across all neighbourhoods and price ranges. Last year at this time, there were more than twice as many homes on the market, and even then, the selection seemed very limited for prospective buyers. Low inventory levels are putting heavy pressure on the price of Saskatoon homes. Hopefully, this new land development policy will be effective in restoring some needed balance to the Saskatoon real estate market.

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

Norm Fisher

Royal LePage Vidorra