Saskatoon real estate: Week in review (November 12-16 2007)

Yet another week of Saskatoon real estate activity is behind us, and while the numbers look more or less similar to those that we’ve seen in recent weeks, there is at least one notable change which is worth pointing out. The “average overbid” column has finally lost almost all of its relevance. While there were still eight Saskatoon houses or condos which were reported as having sold above the asking price, the average amount at which they sold over list dropped to its lowest level this year at just $1,213. The total amount that these eight properties were over was only $9,700. Compare that to the first week in August when buyers paid a total of $1,244,138 more than asking price, or even to the week of October 15-19, which recorded the previous low number at $57,200. Things are definitely different.

On the other side of the market, where most properties sold for less than list price, successful sellers discounted their homes by a total of $540,200 and the “average underbid” was more than $10,000 for the third week in a row. Approximately 10% of the fifty properties which sold below list price accepted discounts of $20,000 or more, with a few approaching the $40,000 mark.

Even still, the average asking price and the average selling price of the Saskatoon homes which did trade bounced back in a serious way from last week, once again reaching their highest levels for 2007. It’s clear that buyers have many more options to choose from but they’re still willing to pay a premium price for a good property in a good location.

Buyers and sellers should both take great care to examine recent sales to ensure that they’re thinking is in the right ballpark. Obviously, buyers want to proceed with caution when there are homes on the market that are priced too high by $40,000, or more. Sellers would be wise to ensure that they avoid such drastic pricing errors. Properties which are grossly overpriced fail to attract much interest and often sell for less than they would have, had then been properly priced in the first place.

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