A TD Economics “Housing Market Commentary” released yesterday describes Saskatchewan’s real estate market as “on fire” and forecasts the province as the home price growth leader across the nation for 2007 and 2008. TD is predicting increases of 28% in 2008 and 11.3% in 2009 which would make Saskatchewan the only province to experience double digit gains in either of the two years.
The report focuses on the growth of the average home price in Canada which has experienced double digit gains for three consecutive years, largely driven by massive increases in western Canada, and more specifically, Alberta. Going forward, TD says, “We expect Alberta’s home prices to grow close to par with the national average in 2008 and to underperform in 2009. And while Saskatchewan in currently on fire, it will likely follow a similar path in about 12 months time.”
What’s missing from this report is the “why?” No detailed analysis is provided to back forecasts which differ substantially from reports issued by RBC and Scotiabank who both described Saskatoon as “overvalued.”
Read the TD Economics Housing Market Commentary here
Read also: Saskatoon and Edmonton homes most overvalued
Read also: Is Saskatoon overvalued? Another economist says “yes”
I’m always happy to answer your Saskatoon real estate questions.
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Norm Fisher Royal LePage Vidorra