Canada Mortgage and Housing Corporation (CMHC) released its "2nd Quarter Housing Market Outlook" for Saskatoon real estate today. Once again, the publication proves to be a huge waste of taxpayer dollars. I hate to be so damned sharp but I'm constantly frustrated by the government agency's failure to get it right. You'd think that they could do better given the resources available to them.
In their forecast released late last fall, CMHC predicted, "In 2007, prices will continue to rise although at a slower pace largely due to the forecast increase in supply. A less pronounced increase is forecast for 2007, with prices rising by 7.3% to reach $169,500." In this newly released 2nd Quarter Forecast, CMHC has adjusted its forecasted increase stating, "Average prices are expected to increase by 21.4% in 2007, bringing the average resale price to $195,000."
It's worth noting that the average selling price of Saskatoon homes has already reached $206,000 year to date, and it topped $220,000 over the month of April. Inventory levels remain desperately low and there is no apparent sign that balance will be found anytime soon.
To their credit, CMHC does make the point that many of the homes currently under construction will be ready for occupancy in the coming months. Given the types of homes that are currently under construction, there is some reason to be hopeful that these “starts” will bring some resale inventory to the market as they near completion.
I’m always happy to answer your Saskatoon real estate questions.
Royal LePage Vidorra