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