WOUTER’S NEWSLETTER
Market Update
The Saskatoon market is HOT, HOT, HOT! As always, we are committed to providing you with excellent service and continuing to share our Real Estate knowledge with you. We value each and every client relationship. Thank you for your continued loyalty and support. Mark and Barb
| MLS Sales - Year to date - March 2008 |
| |
2008 |
2007 |
2006 |
| Saskatoon - MLS Total MLS Volume |
$224,904,220 |
$133,922,689 |
$75,668,570 |
| Total Residential Volume |
$174,820,219 |
$101,836,078 |
$58,982,689 |
| Avg Residential Sale Price - Feb. |
$264,269 |
$187,594 |
$148,856 |
| Average Residential Sale Price - Past 6 mos. |
$254,648 |
$174,882 |
_ |
| Average Residential Sale Price - YTD |
$262,099 |
$188,585 |
$149,323 |
| Number Of Houses Sold |
667 |
540 |
395 |
| Active Residential Listings |
667 |
540 |
395 |
Housing market forecast to remain robust
Helen Morris - Canwest News Service May 7, 2008
OTTAWA - Housing sales will remain robust during 2008 but the volume of sales will ease back from the record levels seen in 2007, the Canadian Real Estate Association said Tuesday.
The industry report said Canada-wide home sales are predicted to decline 11.5 per cent to 460,900 units in 2008. CREA anticipates a further four per cent fall in the volume of sales in 2009.
"Rising prices are continuing to erode affordability and for that reason sales activity is forecast to decline," said CREA chief economist Gregory Klump.
CREA expects prices to set new records in every province this year and again in 2009 but the price gains will fall short of recent record increases.
"MLS home sales will remain strong, despite coming in lower than last year's breakneck pace," said Klump. "After-tax income growth, strong employment and short-term interest rate cuts will support housing demand, despite further home-price increases and increasing economic uncertainty that are wearing on consumer sentiment about making purchases such as a car or home."
The industry body is predicting that the average residential price will climb 5.3 per cent this year and a further 4.2 per cent in 2009.
"The Canadian resale housing market is on a distinctly different path than the market in the United States," says CREA president Cal Lindberg.
Despite the easing off of home sales across the country this year, the association forecast said first-quarter records in Saskatchewan and Newfoundland and Labrador will lead to record annual figures in these provinces.
"Saskatchewan home sales will benefit from an influx of people moving to the province, and the resale housing market in Newfoundland and Labrador should also prove to be exceptional over the next couple of years," Klump said. "A strong natural-resource sector there will lift both housing demand and prices."
A rise in new listings across the country coupled with an easing in sales activity will lead to a more balanced housing market with more supply and lower demand, the association said.
However, a tight market in Saskatchewan and Manitoba will be reflected in price increases far in excess of those seen in any other provinces.
Prices increases are anticipated to be in excess of inflation, currently running at 1.4 per cent annually, in all provinces.
"Brtish Columbia also has significant price increases forecast," said Klump. "they also had net interprovincial migration that was positive."
© Canwest News Service 2008
Believe it or not, city has affordable homes
| |
| Murray Lyons |
| TheStarPhoenix.com |
Tuesday, April 22, 2008
Did you hear about the 535-square-foot bungalow that changed hands for $80,000 earlier this year in Saskatoon? Probably not, but it did happen, according to a survey of affordability conducted by real estate company Re/Max, which surveyed major city markets across Canada this past month.
In a city where the average selling price of houses is now $265,000, the report says first-time buyers looking for something affordable in Saskatoon are still finding bungalows in good condition for under $200,000 in areas such as Confederation Park, Fairhaven, Meadow Green, Mayfair and Westmount.
Should a first-time buyer look at going into a detached house in the Saskatoon real estate market, carrying costs for a $180,000 mortgage would sit at about $1,150 a month for a conventional 25-year mortgage or about $976 for a 40-year mortgage. Those numbers were calculated by Re/Max using TD Canada Trust financing at 5.75 per cent for a five- year term. The mortgage rates was calculated before Tuesday's Bank of Canada half-point rate cut.
While Saskatoon first-time home buyers may feel they are in danger of being priced out of the market, Re/Max points out that in Greater Vancouver, the benchmark price is more than $600,000.
Nevertheless, the chase remains on in Saskatoon for people trying to get into the market. A two-bedroom, 900-square-foot bungalow with a one-bedroom basement suite, was recently listed at $264,000 and elicited 17 offers, Re/Max reported.
Nevertheless, about 58 per cent - or 394 units out of 676 - sold came in under the average asking price of $265,000, "demonstrating that buyers who persevere can find suitable entry-level homes," the report said.
New housing keeps getting more expensive in Regina, Saskatoon
Leader-Post
Published: Friday, April 11, 2008
REGINA -- Saskatoon and Regina once again had the fastest-rising new house prices in Canada in February, according to Statistics Canada.
New housing prices rose the fastest in Saskatoon, which led the nation with an annual price increase of 58.3 per cent, the fastest increase on record for this city. Housing prices rose 4.3 per cent in February compared with a month earlier.
In Regina, the year-over-year increase was 28.6 per cent, up from the annual growth rate of 25.9 per cent recorded in January.
Regina's new housing prices jumped seven per cent between January and February -- the highest increase of any Canadian city.
Many builders reported higher prices as a result of increased material costs and a labour shortage that has resulted in higher labour rates.
Housing markets in both Saskatoon and Regina continue to be strong. Demand for new housing is high in Saskatchewan due to a strong natural resource sector and aggressive efforts to attract migrants to alleviate the labour shortage in the province.
But, across the country, the increase in new housing prices slowed in February, following two consecutive months in which the rate of growth was gaining speed. This deceleration continues the downward trend that started in September 2006.
Nationally, contractors' selling prices rose 6.2 per cent between February 2007 and February 2008, a slower pace than the year-over-year increase of 6.5 per cent in January.
Prices rose 0.3 per cent between January and February.
In Edmonton, the 12-month growth rate slowed in February to 14.8 per cent, the seventh month in a row in which the pace of growth has decelerated.
In Calgary, prices rose 5.2 per cent between February 2007 and February 2008, slightly slower than the 5.6 per cent year-over-year increase in the previous month.
Edmonton and Calgary are experiencing slower market conditions. With some migrants leaving the province, there are many resale houses on the market, making for slower new housing sales.
This has resulted in both cities showing price declines on a monthly basis. In Edmonton, prices were down 0.9 per cent from January, and in Calgary, they were down 0.3 per cent.
© Leader-Post 2008
RECORD SETTING MONTH FOR SASKATOON’S REAL ESTATE MARKET
Saskatoon REALTORS® assisted 367 home buyers fulfill their dream of home ownership. That number is up 14% from 2007 when 321 homes were purchased. The average selling price continues to climb as demand fuels the market. The average residential selling price in the month of February was a record setting $264,269.00 up 41% from last February which in its self was a very busy month.
The six month rolling average sales price is at $254,648.00.
The average selling price is derived by dividing the month’s unit sales number into the dollar volume of real estate sold for that period. The percentage change should not be used unilaterally as prices due vary from area to area. Home owners wishing to determine an accurate value for their home should contact a REALTOR® member.
Increased inventory was welcome in the month of February as 483 homes were listed by Saskatoon REALTORS® up 40% from February 2007 when 344 properties were placed on the market for sale. At the end of February home buyers had 369 properties to choose from as compared to last year at this time when only 252 properties were available for sale.
REALTORS® sold $96,986,000.00 of real estate in February that number up 61% from February 2007 when only $60,217,000.00 of real estate exchanged hands. Year to date $174,820,000.00 of real estate has been purchased up 72% from last year.
Residential real estate sales in the smaller communities around Saskatoon continue to be very strong with 99 properties being purchased last month that number up 21% from last year.
The average sales price in these areas also continues to climb with the average price in February being $218,931.00 up 37% from February 2007 when the average was $159,814.00.
Similar to last spring REALTORS® are starting to see multiple offer sales take place. The market is being fueled from many fronts, out of province and out of country buyers are looking to invest in our city and area. Local investors are more content than ever in developing in Saskatoon and area.
All indicators point to a very high demand spring sales market. New home construction is strong and demand for all types of properties continues to grow not limited to residential, multi family, acreages and commercial investment property.
Harry H. Janzen, CAE
Home prices to jump
CMHC predicts 26 per cent hike in Sask. Values
Cassandra Kyle, The StarPhoenix Published: Tuesday, February 05, 2008
While temperatures remain low across Saskatchewan, one forecast is putting the heat on prospective homebuyers.
According to a Canada Mortgage and Housing Corp. (CMHC) report released Monday, the average price of a resale home in the province is set to jump 26 per cent to $220,000 this year and a further eight per cent to $238,000 in 2009. Last year, the average resale price increased 32 per cent to $174,000 on demand and investment dollars, according to CMHC regional economist Richard Corriveau.
In Saskatoon, the percentage increase projected for 2008 may be lower -- at 18 per cent -- but this will produce an average selling price for the year of $275,000, according to CMHC and by 2009, the average price of a resale home could reach $297,500.
But as prices rise over the months, the number of new home starts will slow, dropping by seven per cent this year, according to the report. Corriveau says the decline in home starts will still leave enough inventory to meet demand in the province.
But Harry Janzen, executive officer of the Saskatoon Region Association of Realtors (SRAR), disagrees. Janzen believes more construction is needed to sustain the real estate market and doubts any decline will occur.
With homebuyers preparing to take possession of their new residential properties, which went under construction in 2007, more resale homes are set to hit the market Corriveau said. Last year, new home starts in Saskatchewan rose by more than 60 per cent according to the corporation's report. The moderate drop in starts this year will still keep levels in the province among the highest seen since the 1980s, he said.
"Our forecast is a 60 per cent increase over the 10-year average, so that's a tremendous increase even though we're looking at a modest weakening in overall starts," Corriveau said from his Calgary office. "I just believe the province will be searching out a new norm for the marketplace, and soon what occurred in the '90s and early 2000s will be a distant memory."
A lack of skilled labourers is contributing to the CMHC's forecast of a few hundred less starts this year, to 5,600 from the 6,007 that went under construction in 2007. In 2009, housing starts are forecast to slip by five per cent to 5,300 structures.
With Saskatchewan leading the nation in housing price growth, residential affordability won't be playing as large a role in attracting migrants to the province, Corriveau explained, a factor that will also lead to a decline in new home starts. Still, he said, the resale homes expected to come on the market will ease pressure in provincial inventory levels.
"We'll also see some additional competition from the resale market as well," he said. "Last year there was very little active listings and we expect more will come on stream and become available for buyers in the next six months."
At the end of January, 324 homes were on the market in Saskatoon according to SRAR's January housing market report released Monday. Three hundred residential units were sold last month for an average price of $259,444, a record high for the city. With indicators pointing to an active spring and moderate price increases during the first six months of the year, Janzen said the demand for inventory in the region is clear.
"We don't agree with much of their forecast," he said in a telephone interview. "The demand is there and people are wanting to move here and they're wanting to build."
Janzen agrees that a wave of resale homes on the market will ease pressure, but it won't be enough to meet demand without sustained construction on new homes. Developers need more lots to build on, he said, adding the contractors he's spoken with don't expect a let up in work through 2008.
"The thing is that demand is there, so therefore the more product that's available the better," he said. "We can certainly use more inventory."
Last month, more than $77 million in residential property was purchased in the region, according to SRAR's report. That's up 87 per cent from January 2007 when nearly $42 million in homes were sold. The most popular homes in the city cost between $300,000 and $400,000, Janzen said.
Although home prices continue to rise, now is a good time to buy, especially for people who are comfortable with variable interest rates said Tanis Taylor, a Saskatoon-based mortgage expert with BMO Bank of Montreal. The combination of a hot real estate market with a strong money market and a range of personalized mortgages is creating good opportunities for would-be buyers.
"Now is a great time, in relative terms, in the context of money market. In terms of the real estate market, again money-wise, now may prove to be a better time than three to six months from now," Taylor said, alluding to the CMHC's report. "It's the opposite of a perfect storm, it's sort of like a perfect rainbow."
Saskatoon's real estate market is benefiting from a good economy, low unemployment, decent inventory levels and a reputation for being relatively affordable, she said. Even first-time buyers and people who would normally rent accommodations are finding promising opportunities to become homeowners.
"It's a nice position for purchasers and sellers in our marketplace to be in," she said.
RE/MAX Agents raise over $4 million
for Children’s Miracle Network
Kelowna, BC (February 5, 2008) – Housing sales and average price weren’t the only records being shattered across Canada in 2007. RE/MAX agents also set a new benchmark in charitable giving, raising over $4 million for the Children’s Miracle Network.
The 2007 donation surpassed the agents’ 2006 contributions by more than 14 per cent. Since 1992, RE/MAX sales associates nationwide have contributed close to $30 million to the cause. The 2007 break-down of contributions saw over $654,000 donated to the BC Children’s Hospital Foundation in Vancouver, over $322,000 raised for the Alberta Children’s Hospital Foundation in Calgary, over $327,000 contributed to the Stollery Children’s Hospital Foundation in Edmonton, over $65,000 towards the Children’s Health and Hospital Foundation of Saskatchewan in Saskatoon and over $150,000 given to the Children’s Hospital Foundation of Manitoba in Winnipeg.
"What many don’t realize is that the corporate and private sectors play a vital role in making miracles possible,” says Marie Sheppy, Senior Coordinator, Corporate Affairs, RE/MAX of Western Canada. “With public coffers stretched to the limit, it’s a fact that organizations like RE/MAX fund a significant portion of the required cost to treat sick and injured children in pediatric facilities across Canada. We work so hard because we know our donations mean more than dollars and cents—it's an opportunity for healthy, happy childhoods and hope for promising futures. There really is nothing more rewarding than watching kids just be kids.”
RE/MAX realtors generate donations through the RE/MAX Miracle Home Program®, whereby a portion of their commission earned on the purchase or sale of each home is given to Children's Miracle Network affiliated hospitals. Children's Miracle Network supports 14 children's hospitals and foundations across Canada. Donations are often maximized through additional fundraising events including golf tournaments, gala evenings with silent auctions, casual Fridays and much more. Funds raised in each community stay in that community to be invested in the local Children's Miracle Network hospital.
“It’s amazing what can be accomplished when people work toward a meaningful cause,” says Christine Martysiewicz, Director of Internal and Public Relations, RE/MAX Ontario-Atlantic Canada. “The synergy, commitment and enthusiasm of the RE/MAX network are truly phenomenal. However, what’s more amazing is that the charitable efforts undertaken by our realtors are 100 per cent voluntary. Supporting Children’s Miracle Network is a chance to make a real difference in the lives of local children and families in their own communities. That type of involvement is something that’s been woven into the fabric of the RE/MAX organization since its inception. The way we see it, we don’t just serve and work in these communities, we truly are a part of them, and we care—it’s that simple.”
In Canada, the funds raised on behalf of Children’s Miracle Network help support outreach programs and fund advancements in critical research, as well as upgrades to medical facilities and equipment.
“The outstanding generosity of RE/MAX Associates has helped more than 2.5 million Canadian children in 2007 alone – that’s 1 in 4 kids nationally,” says John Hartman, Chief Operating Officer – Canada, Children’s Miracle Network. “RE/MAX has made Children’s Miracle Network hospitals a vital part of what they do and continue to put giving back at the top of their agenda. Since 1992, RE/MAX has been a strong supporter of Children’s Miracle Network. Their dedication, passion and enthusiasm for the kids and families in their communities across Canada is outstanding. They continue to give and give more. We are very proud to be affiliated with RE/MAX. The progress being made thanks to contributions, like that from RE/MAX, has been nothing short of astonishing. While care and outcomes have improved significantly, it also remains a reality that the need has never been greater.”
In Canada, the children's hospitals/foundations receiving funding from Children’s Miracle Network are: BC Children's Hospital Foundation in Vancouver, Alberta Children's Hospital Foundation in Calgary, Stollery Children’s Hospital Foundation in Edmonton, Children’s Health and Hospital Foundation of Saskatchewan in Saskatoon, The Children's Hospital Foundation of Manitoba in Winnipeg, SickKids Foundation in Toronto, Children's Health Foundation in London, McMaster Children’s Hospital in Hamilton, Children's Hospital of Eastern Ontario Foundation in Ottawa, Operation Enfant Soleil (St. Justine’s Children’s Hospital, Montreal Children’s Hospital, Centre hospitalier universitaire de Québec (CHUQ) , IWK Health Centre in Halifax, and Janeway Children's Hospital Foundation in St. John's. For more information, visit: www.childrensmiraclenetwork.ca.
RE/MAX is Canada's leading real estate organization with over 17,600 sales associates in more than 650 independently-owned and operated offices. The RE/MAX franchise network is a global real estate system
operating in over 65 countries. More than 7,000 independently-owned offices engage nearly 115,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management. For more information, visit: www.remax.ca.
2008 Housing Market Off to a Red Hot Start
No slow down in site for Saskatoon’s real estate market. REALTORS® took a short break at Christmas time and are in full swing for 2008. Residential unit sales increased 37% from last January with 300 homes being purchased.
$77,833,000.00 dollars of residential real estate was purchased in the month of January that number up 87% from January 2007 when only $41,618,000.00 of real estate exchanged hands. REALTORS® listed 360 homes in the month of January that number up 26% from January 2007 when 285 homes were listed for sale. Improved inventory levels are very welcome as we move into a strong spring market.
Consumers had 324 residential properties to choose from at the end of January that number up 19% from January 2007 when only 272 homes were available for sale.
The six month rolling average sale price was $252,810.00. The average residential selling price was an all time high at $259,444.00 up 37% from January 2007 when the average selling price was $190,037.00. The average selling price is derived by dividing the month’s unit sales number into the dollar volume of real estate sold for the month. The percentage difference should not be used unilaterally as prices do vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member.
The surrounding communities around Saskatoon are experiencing great market activity as well. Unit sales are on par for the month of January but the average selling price rose 61% to $222,882.00. Rural inventory was up 28% with 262 properties being available for sale as compared to 205 being for sale last January.
All indicators point to a very active spring market. The association’s forecast is for selling prices to increase at a moderate level in the first and second quarters of the year.
Harry H. Janzen, CAE
Executive Officer
Saskatoon Region Association of REALTORS®
Canadian residential real estate future is solid
OTTAWA – January 23, 2008 – The Canadian housing market in 2007 set a number of MLS® sales records, and the re-sale housing market is expected to remain at near record sales levels in 2008, according to The Canadian Real Estate Association. Annual residential MLS® sales activity totaled 520,747 units in 2007, up 7.6 percent from 2006 levels. This was the largest annual sales growth since 2002, and the first time transactions via the MLS® systems of real estate boards in Canada have surpassed 500,000 units sold in one year.
“The results in 2007 show the strength and the affordability of the Canadian residential market,” says CREA President Ann Bosley. “The statistics again show just how different the housing markets are in Canada and the United States. Canadian REALTORS® know that Canadian mortgage lenders correctly see that home prices will continue rising. We know there is still strong competition for mortgage business in Canada.”
Three key economic ingredients will keep Canada’s housing market on a different track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates. The Bank of Canada cut interest rates on January 22nd because of weaker prospects for Canadian economic growth in 2008. “Those lower interest rates will also help temper the erosion in housing affordability due to additional home price increases,” Bosley added. The Bank of Canada is expected to cut its trend-setting rate again in March.
CREA’s Chief Economist Gregory Klump says that the Canadian housing market in 2008 will pull back from the breakneck pace set in 2007, but this is still forecast to be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.
Average prices for MLS® home sales are expected to keep setting records in 2008, although prices will increase more slowly as the market becomes more balanced. In most provinces, the market will nevertheless remain historically tight – with the tightest markets being in Saskatchewan and Manitoba. Nationwide, the average residential price is forecast to increase 5.5 per cent to about $322,700. According to CREA’s Chief Economist, a larger supply of listings will be one of the balancing influences in 2008. New listings are forecast to rise in all provinces except Alberta, where they’re expected to retreat after spiking in late 2007.
“The challenge for the Canadian housing market will be the extent to which employment and consumer confidence may be affected by a slowdown in the U.S. economy,” Ann Bosley adds.
“Slower job growth, not massive layoffs, are forecast for Canada in 2008,” CREA’s Chief Economist Gregory Klump adds. “Consumer confidence may be sideswiped by stock market volatility, and reports that chances of a U.S. economic recession will put the brakes on the Canadian economy. With slower job growth, a low unemployment rate and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates”.
2007 Was a Record Breaking Year in Residential Home Sales
Saskatoon REALTORS® were kept busy in 2007 assisting 4,446 home-buyers with their purchase of over one billion dollars of residential real estate. The $1,034,826,425.00 number represents an 88% increase in residential dollar volume from 2006, which had a dollar volume total of $ 550,779,874.00.
2007 saw a total MLS® dollar volume record of $1.367 billion dollars with over 6,000 properties being purchased. This number, also a record, was up by 37% from 2006 when 4,411 units were sold.
The month of December was very active with 210 residential units selling, up 34% from December 2006 when only 157 units were purchased. Year to date 4,446 residential homes were sold.
The six-month rolling average sale price was $250,428.00. The average residential selling price in December was $255,271.00. This number also up 46% from December 2006 when the average sales price was $175,301.00.This increase in the average selling price indicates strong demand for mid to upper price range homes. Year to date the average selling price is $232,754.00 up 45% from 2006.
The average selling price is derived by dividing the month’s unit sales number into the month’s dollar volume. The percentage of change from month to month should not be used unilaterally as prices do vary from area to area. Consumers wishing to know the value of their home should contact a REALTOR® member for an accurate evaluation of their property.
Residential listing inventory was up at the end of December with 346 properties being available for sale. That number up 37% from December 2006 when 253 homes were available for purchase.
1,050 rural residential units were purchased in 2007. This number is up 35% from 2006 when 780 rural residential properties were purchased. The average selling price for rural residential properties in 2007 was $182,314.00 increasing by 24% from 2006 when the average selling price was $146,573.00.
All indicators point to a very strong real estate market in 2008. There is exceptional consumer optimism in Saskatoon. Investors from across Canada and other parts of the world are excited about our city and our province and appear ready to invest in all areas of real estate. It is easy to share this optimism when one considers Saskatchewan’s opportunity for unlimited growth while still remaining one of the most affordable places to live in Canada.
Harry H. Janzen, CAE
NOVEMBER’S REAL ESTATE MARKET REMAINS VERY ACTIVE
Saskatoon REALTORS® were kept very busy in the month of November assisting 316 home buyers fulfill their dreams. That number is up 37% from last year at this time when 230 properties were sold. Year to date REALTORS® have sold 4,236 homes that number up 29% from last year when 3,273 homes were sold.
The average residential selling price is derived by dividing the month’s unit sales number into the dollar volume number. The average selling price for November was $251,202.00 up 50% from November 2006 when the average selling price was $ 167,480.00. The six month rolling average sales price is $249,957.00. Purchasing a home in Saskatoon is still very affordable when measured against markets such as Calgary’s where a single family home average price hovers around the $420,500.00 mark.
Year to date Saskatoon REALTORS® have sold 1.3 billion dollars of real estate up 98% from 2006 when $656,491,000.00 of real estate had sold. Year to date the highest number of unit sales have taken place in the $300,000 to $400,000 price range with 652 properties having sold. The next highest unit sales are in the $225,000 to $250,000 price range with 465 properties having sold.
Listing inventory continues to improve with 375 properties being listed in November up 60% from last November when 235 homes were placed on the market for sale. Home buyers had 538 homes to select from at the end of the month as compared to 363 homes being available at the end of November 2006 representing a 48% increase. This inventory increase plays a very important part in balancing the market place environment.
All indicators point to a strong finish in residential home sales for 2007 with much optimism present for a strong start to 2008. REALTOR® members continue to receive out of province inquiries for investment opportunities in the Saskatoon market. Ex pats continue to return home with significant equity earned by selling their homes in Alberta and returning to Saskatchewan.
Harry H. Janzen, CAE Executive Officer Saskatoon Region Association of REALTORS®
City condo sales rise 33 per cent
Average unit price increases to $210,000
|
| Cassandra Kyle |
| The StarPhoenix |
Thursday, November 15, 2007
The growth of condominium sales in Saskatoon is among the highest in the country, increasing 33 per cent over last year, according to a new report.
Fueled by the provincial economy, Saskatoon's percentage of increased sales trails only Kitchener-Waterloo, Ont., Regina and St. John's, N.L., according to figures from Re/Max's 2007 condominium report. Nearly 350 more condos have been sold in Saskatoon this year than in 2006, to 1,340 from 1,008. The average price of a condo unit is also on the rise, climbing about 24 per cent to $210,000 from $169,000 the year before. The report, released Wednesday, states condo sales account for nearly one in every 10 residential property sales in the city.
Saskatoon Re/Max broker Larry Stewart isn't surprised to see such a dramatic increase in condo sales. Interest in apartment and townhouse-style units is being driven by changing lifestyles in the city, he said, with more people wanting to own property that doesn't require the care and attention of a house.
"In Saskatoon our pace (of life) has increased. So we've got a lot of single people -- single ladies, single guys -- and they're on airplanes a lot, and they're travelling a lot, and they don't have time for yards. They like to leave for a week here, a week there, and they don't want to worry about anything," Stewart said of the buyers, usually between the ages of 25 and 39. "So it's kind of a combination of that, and affordability."
Condos are an attractive option to first-time buyers priced out of the housing market, he said, but added people are more interested in the units for the lifestyle they accommodate rather than a lower price tag. Apartment-style condos located downtown, which often offer extra amenities such as fitness rooms, are usually more luxurious and expensive. Townhouse-style units, found in coveted areas such as Silverspring and Lawson Heights, are the more popular of the two, the report says.
Retirees and empty-nesters also contributed to the increase in condo sales, with many selling their homes for luxury condos, and often for the same reason as their younger neighbours, Stewart said.
While the report indicates rising condo sales in Saskatoon, figures show condo sales in Regina are also on the rise, jumping 57 per cent to 545 units from the year before. The average price for a unit in Regina rose to more than $200,000 from $135,000 last year.
Stewart expects Saskatoon's condo market to keep growing. With developments and conversion projects, which were not included in the survey, proceeding across the city, demand for the units is abundant, he said. While condo inventory is balanced at the moment, the broker predicts a shortage of units in early spring will push prices higher, but by summer, inventory should be readily available again. While Stewart doubts another 30-plus percentage increase in sales from now to 2008, he does think growth between 10 and 14 per cent is reasonable during the next 12 months.
Two-bedroom units priced between $190,000 and $260,000 are often targeted by first-time buyers in Saskatoon, the report stated. However, the upper end of the condo market, with units starting at $249,000, remains active.
OCTOBER’S RESIDENTIAL HOME SALE MARKET REMAINS STRONG
October’s residential home sales market remained strong with a six month rolling average sales price of $247,076.00. The rolling average indicates the average price over the most recent six month period. The average sales price for the month of October was $255,613.00 up 53% from last year at this time. This number indicates strong demand for mid to upper price range homes.
The average price is derived by dividing the month’s unit sales number into the month’s dollar volume number. The average sales price percentage change should not be used unilaterally as prices vary from area to area. Consumers desiring to know the exact sale price range for their home should contact a REALTOR® member for that information.
Saskatoon remains a very affordable place to call home when compared to the national major market MLS® average selling price which was $329,000.00 up 11.9% from last year at this time or compared to markets such as Calgary where single family homes average $470,000.00.
Year to date Saskatoon REALTORS® have sold 1.19 billion dollars of real estate. That number up 96% from 2006 when $609,500,000 of real estate was sold.
Home buyers had 650 residential properties to select from at the end of October that number up 43% from 2006 when 453 homes were available to purchase. Listing inventory continued to improve with 534 properties being placed the market for sale up 43% from 2006 when only 377 properties were listed for sale.
All indicators point to similar activity for the remainder of 2007 fuelled by consumer confidence in the Saskatoon and area economy. Market activity is expected to increase in the spring of 2008 accompanied by increased home sale prices.
Harry H. Janzen, CAE Executive Officer Saskatoon Region Association of REALTORS®
Housing heads for 24-year high
CMHC projects 6,000 starts for Sask. by end of the year
|
| Bruce Johnstone |
| Saskatchewan News Network |
Wednesday, October 31, 2007
REGINA -- Buoyed by a booming economy, Saskatchewan's housing industry will hit a 24-year high with 6,000 starts in 2007 -- up 61 per cent from last year, says Canada Mortgage and Housing Corp. And the resale market is keeping pace, with 12,150 home sales in 2007, up one-third over last year and the highest home sales on record, according to CMHC's fall market outlook.
Prices are also rising to record heights. The cost of building a new home rose 38 per cent in the province this year, while average resale home prices increased 29 per cent in 2007 -- the highest price increase in Canada. However, CMHC forecasts those rapidly rising prices will push housing starts down eight per cent to 5,500 in 2008, while existing home sales are expected to decline to 11,600 next year.
Paul Caton, Saskatchewan senior market analyst for CMHC, attributed the strong new and resale housing markets to the province's growing economy. "It's all commodity based, that's where it starts," Caton said, referring to rising oil, potash, uranium and agricultural commodity prices.
In-migration, especially from Alberta, has reversed a 22-year period of migratory losses and given an extra boost to housing markets throughout the province. "We've been (predicting) this for years and now it's happening," Caton said.
Caton noted the projected 6,000 starts in 2007 is the highest since 1983 and a far cry from the province's annual 2,000 to 2,200 starts in the late 1980s or early 1990s. He conceded that the rapid rise in starts, sales and prices this year took even CMHC by surprise. "The turnaround happened so fast. If you look back at our forecast in the spring, we never anticipated anything like this. Nobody did."
CMHC is forecasting 2,450 housing starts for Saskatoon in 2007, up from 1,496 in 2006, while Regina is projected to have 1,350 starts in 2007, up from 986 in 2006. Saskatoon's housing starts are forecast to fall to 2,100 in 2008 and Regina's housing starts are expected to decline to 1,150.
Similarly, CMHC expects the resale housing market to cool down in 2008, largely because of the moderating effect of higher prices on demand.
Average prices are expected to increase to $265,000 in 2008 from $232,500 in 2007 in Saskatoon and to $180,000 in 2008 from $160,000 in 2007 in Regina.
Bill Madder, executive vice-president of the Association of Saskatchewan Realtors, said CMHC's price and unit sales forecast may be conservative. "CMHC tends to underestimate. I suspect it's going to be more than that." For example, the CMHC forecast for the average house price in Saskatchewan of $170,000 in 2007 was reached by the end of October. Similarly, the 2007 average price of $160,000 in Regina and $232,500 for Saskatoon were achieved this fall, Madder said. But he agreed with CMHC that the resale market will cool down somewhat in 2008. "We'll likely see another active spring, but not the levels we saw this year. That's to be expected."
Housing boom nears plateau
Re/Max predicts four per cent growth for Saskatoon in '08
Thursday, October 18, 2007
Saskatoon Re/Max is expecting the city to experience another high volume year for residential real estate, but price increases in 2008 shouldn't deliver the shock and awe of this past year.
Saskatoon was the 2007 price gain leader across the 18 markets Re/Max surveys in Canada, with the price increase year over year averaging about 49 per cent for most of 2007. That has pushed the average selling price of a house to $240,000 in 2007.
Across Canada, the 18 urban markets surveyed by Re/Max show the average price increase in Canada was nine per cent or $25,000 this year, resulting in an average Canadian house sale price of $303,000.
Saskatoon Re/Max broker Larry Stewart says a four per cent increase in 2008 would put the average selling price next year in Saskatoon at around $250,000.
By the end of 2007, Re/Max is predicting 4,400 housing units will have been sold in Saskatoon, a volume increase of 28 per cent for the year. Stewart sees a similar volume of houses selling next year, but without the rapid escalation in price.
"I think we're going to have volume, but we've already had such a huge (price) increase," he said. "Our new construction is waiting for land. There are all sorts of people looking, but they don't want to buy because there's nothing out there they like so they're waiting to build.
"Once they build, there are people waiting to buy their houses because (the houses) are quite nice."
As the local market moves through the final quarter of the year, the Re/Max report notes there are still multiple offers coming in on "well-priced product." Currently, houses on average are on the market 20 to 25 days, the report notes. However, house sales in Nutana and University Heights are so brisk that Stewart says a house is often sold before the listing occurs. Realtors report they can't get enough listings in Lawson Heights in the city's north end.
While first-time buyers are largely attracted to condominiums, sales are brisk in the sales of luxury homes -- over $800,000 -- the Saskatoon Re/Max report notes.
The forecast is that sales across Canada will retreat to about 500,000 units from this year's 545,000, but prices on average will rise six per cent to $321,000. Re/Max is predicting house prices will rise in Regina in 2008 by nine per cent above to put the average selling price in the Queen City to $175,000.
© The StarPhoenix (Saskatoon) 2007
Saskatoon housing prices drop as market stabilizes
Anticipated election in Sask. slows sales
Cassandra Kyle
The StarPhoenix
Tuesday, October 02, 2007
Saskatoon's real estate market is showing signs of stability after an $11,000 drop in the average price of a home from August to September.
As homeowners put their properties up for sale in preparation for a move to a new home or condo, people looking to buy have a larger inventory of houses to choose from, easing the rush to purchase and lowering prices, said Harry Janzen, executive officer of the Saskatoon Region Association of Realtors (SRAR).
While September's average price was 49 per cent higher than what was seen in September 2006, rising to $242,091 from $162,116 last year, Janzen said a steady levelling off is expected in the market for the remainder of 2007.
"With more listings available, people can go about their business in what we would call more of a normal fashion." he said.
"Right now we're hoping, and we're always hoping, that a levelling in the marketplace will take place and that's certainly what seems to be happening."
A factor that could play into autumn house prices is the upcoming provincial election. Historically, said Janzen, housing markets have slowed during election periods.
"There's good optimism (in the market stabilizing), and I think part of that is because history has told us that any time there is an election pending the market actually slows down somewhat prior to that, and certainly with the expectation of it being (called) we're starting to see a little bit of that effect already.
"In years past we've noticed that to be the same whether it's a municipal election, a provincial election or a federal election," he said.
While an election call could help slow the market, it might not do anything to aid sales in the rural residential sector, which saw a 28 per cent drop to 63 sales from 87 in 2006. While the average rural residential selling price reached $209,494 in September, up 51 per cent from $138,550 in the same month last year, Janzen isn't sure why sales are off outside of the city.
"We're not quite sure why that is, outside of the fact that there's a little less demand for the rural residential and certainly demand for city residential property remains high," he said.
With the value of year-to-date residential sales sitting at $830 million, Janzen anticipates the region will hit $1 billion in residential sales by the end of the year if the market remains stable. Total property sales in the region reached $1 billion in August.
"From an industry perspective we're happy to see that the average sale price isn't going that much higher because it will certainly allow us to create a stability in the marketplace and not have to worry about some of the sustainability issues that might accompany a steady increase in the market," he said.
At the end of September, there were 619 homes for sale in the region.
ckyle@sp.canwest.com
© The StarPhoenix (Saskatoon) 2007
KEEP YOUR COOL IN TODAY’S HOT HOUSING MARKET
For sale signs are popping up all over the city. Buyers and sellers should follow some advice to make sure they get the best deal.
Thursday, September 20, 2007 Saskatoon, Saskatchewan The StarPhoenix
by Tom Eremondi of SP Creative Services
Homes are selling for 50 per cent higher than at this time last year with the average home price at just under a quarter of a million.
The total volume of homes sold for the period ending in July was up 97 per cent – $654 million, compared to $332 million the year previous.
Actual unit sales rose 39 per cent, with 2,900 homes sold compared to 2,100 in 2006.
There’s no doubt Saskatoon’s housing market is hot, hot, hot.
While one would assume that means it’s easier to sell and buy homes, that doesn’t mean vendors and purchasers should blindly rush ahead to accept offers or sign deals. Local real estate experts instead offer advice to help people keep their cool.
For instance, there’s a prevalent myth that Realtors® aren’t needed because the market is so hot. The opposite is true, says Harry Janzen, executive director of the Saskatoon Region Association of Realtors. “Realtors have the added skill set of being able to negotiate transactions. This adds a value to the process for both buyers and sellers, especially sellers when there are numerous offers being made,” he says.
“We’re doing more prep work to get homes ready for the market because there is just a small window,” reports agent Mark Wouters. “Because of our knowledge of the market, we can help people ensure that their house is presented in the best fashion and they’ll get a better price. “Most buyers have shopped on the Internet and already narrowed their choices based on nothing more than the pictures, they don’t even look at the text. This is why appearance is so crucial.”
Price is equally crucial to the market and shows the need for professional assistance, Janzen says. “By working with a Realtor, you’ll have a better idea of what other homes have sold for and at what price your home will sell faster.” Wouters says stopping to take a breath before pricing is important. “You want to price it keenly and not try to stretch the price too much. Your agent can help you figure out the market value and price it a little bit under to ensure you get the activity and a quick sale. It’s better to do this than to risk having your house sit for a month or two.” Once you’ve determined a price, it’s important to not jump at the first offer that comes along. According to Janzen, last spring’s frenzy saw as many as 31 offers being made on one home and homes often selling for tens of thousands of dollars above asking price. He says agents help ensure the best price by using a delayed offer. “Traditionally an agent must present every offer being made to a vendor. With a delayed offer, the agent can hold back all offers for a certain time period and then present all offers at the same time. This allows the seller to get the best possible price for the home.” While Janzen says three days is typical for delayed offers, Wouters says he prefers up to seven days. “Generally we try to have a home listed over the weekend so an ad can be in the paper and to ensure people see the listing on the MLS.ca website.”
He adds that buyers need to be more wary before making final decisions, too. “Buyers want to make sure they’re comfortable buying without having conditions and that their financial institutions are comfortable with that as well.” This affects home inspections, Wouters says. “Buyers need to look at a home very closely, particularly if it’s an older home. They should look for more than what’s on the surface and budget for repairs, again especially if it’s an older home. Also ask for a copy of the disclosure form – 99 per cent of sellers are willing to provide this.” Janzen says working with agents will help buyers ensure they get the right price. “An agent can show them comparable properties in the area so buyers will have a better idea of what’s on the market and they won’t overpay. Buyers also should know that, in today’s market, they likely won’t be getting a deal. It’s very unlikely they’ll be able to offer less than the asking price.” Buyers can further prepare themselves by keeping an eye on the market so they’ll know when a home is priced right, says Wouters, adding that having your finances arranged ahead of time (such as a pre-approved mortgage) is another advantage.
This joint is jumpin'
Saskatoon's economy hottest in Canada, attractive for investors
Cassandra Kyle, The StarPhoenix
Published: Friday, September 14, 2007
Saskatoon has moved ahead of Calgary to become Canada's fastest-growing metropolitan economy in 2007, according to figures in a new report.
With a forecasted real gross domestic product (GDP) increase of 4.7 per cent fueled by a diverse economy and a growing population, The Conference Board of Canada, a non-profit group that specializes in economic trends, has put the city on the top of the list in its autumn Metropolitan Outlook report. Last year, the Saskatoon CMA, an area with about 240,000 people, ranked seventh out of 13 large Canadian cities covered in the report.
"Saskatoon is not first accidentally this year. The city has always been near the top," said Mario Lefebvre, director of metropolitan outlook service for the board. "This is not really a new story. You're still high up there, and for me that's a strong sign that Saskatoon can sustain this type of activity."
DRAWING NEW RESIDENTS
Lefebvre said job creation in the city's growing sectors, such as construction and manufacturing, and in traditional industries, such as agriculture, are drawing ex-pats back and new residents to the province. Factors such as more good-paying jobs and more people spending money are boosting the economy. A growth of 4.7 per cent puts Saskatoon's forecast GDP for the year at nearly $8.3 billion.
"The employment counts at the end of this year -- give or take a few -- should be at 135,000 jobs. We were at 121,000 in 2004, so that's almost 14,000 jobs created in three years. For the economy the size of Saskatoon, that's just fantastic," Lefebvre said from his office in Ottawa.
Saskatoon's GDP growth is expected to drop in the coming years, down to increases between two and three per cent through 2011. But the decline shouldn't be cause for concern for investors, businesspeople or citizens, he said.
"At three per cent (growth), I have a whole bunch of eastern cities that would be willing to break out the champagne bottles," he said.
Alan Migneault, CEO of the Saskatoon Regional Economic Development Authority (SREDA), said the board's metropolitan outlook report released in fall 2006 initially forecast Saskatoon's 2007 GDP growth at 2.9 per cent. While he does not think the board's forecasts are inaccurate, there is always room for change.
"Their mid-year revision, in my opinion, to the 2007 forecast going all the way up to 4.7 per cent growth -- that's a significant increase in GDP growth. The average Canadian growth is around 2.1 per cent, so we're almost doubling Canadian GDP growth rates," Migneault said. "The Conference Board of Canada is like any other economist -- they use the information they're provided with and come up with a forecast and if they're right, great, and if they're not there's always another year to forecast."
REGINA ALSO BOOMING
The acknowledgment of the city's growth and business-friendly atmosphere is exciting, Migneault said, and will be used as a tool to promote the region to investors and workers worldwide.
The outlook forecasts Saskatchewan's GDP growth for 2007 at 4.4 per cent, to $33 billion for the year, up from 0.3 per cent GDP growth the year before. Regina is expected to reach its highest GDP growth rate in a decade at 3.5 per cent to just over $7 billion.
Provincial Finance Minister Pat Atkinson said the NDP government has been planning for the growth for years. An emphasis on infrastructure development, especially transport routes and recreation and culture facilities, will be required as the province grows.
"The biggest challenge we have in this province is to renew the infrastructure -- road, sewer, water facilities -- to support that economic activity and citizens," Atkinson said. "In Saskatoon, the challenge is affordable housing for people who are coming here for those jobs."
Housing starts in the Saskatoon CMA are forecast to reach their highest level since 1983.
New home starts rising
House prices will keep increasing, analyst predicts
Friday, August 10, 2007
New home starts in Saskatoon are still way ahead of last year's pace, despite a month-over-month decrease between June and July, the Canada Mortgage and Housing Corporation (CMHC) reports.
Total new home starts in the city in July rose nearly 66 per cent to 292 units from 176 during the same period last year, helping push year-to-date construction starts to 1,497, a number not seen since July 1983.
Single detached home starts in Saskatoon's census metropolitan area (CMA), an area with a population of about 240,000 people, rose 40.2 per cent, from 102 units in July 2006 to 143 units this July. Multiple family starts more than doubled to 149 units in July from 74 during the same time period last year.
In the city alone, total housing starts rose 46.2 per cent to 209 units under construction in July, up from 143 that were being built in July 2006. Outside Saskatoon, there were 83 total housing starts in July – 50 units more than what was being built in places such as Warman and Osler in July 2006.
In the Regina CMA, housing starts increased by 46.3 per cent in July to 139 units from 95 in July 2006. Of the capital city's recent housing starts, 92 of them are single-detached and 47 are being built for multiple families.
Paul Caton, CMHC's senior market analyst for Saskatchewan, says most of the more than 1,800 total housing units in various stages of construction in Saskatoon and area are single-family homes, and 90 percent of the homes being built have a buyer waiting to be handed the keys.
"Saskatoon home builders don't build homes on spec. They build when they have money and offers to buy them," Caton said, adding when the homes are finished, more resale properties will open up on the market.
"What we will see with these 1,800 homes is that some people from out-of-province will move in, but the majority will be from the city. That should help increase the amount of houses on the resale market and maybe soften it up a bit."
The analyst predicts that during the next few years house prices will continue to increase, but not as dramatically as in the first six months of this year. The average price of a resale home in Saskatoon dropped by $7,000 to $245,151 in July.
"What's happening in other places -- I'm thinking of Edmonton and Calgary -- is that we're seeing a soft landing," Caton said.
"We're still seeing price increases, but by smaller margins. I expect within the next two to three years we'll have a market softening."
The latest new house price index released by Statistics Canada shows both Saskatoon and Regina with record increases. Regina saw a 22.5 per cent increase over June 2006, while Saskatoon's new house price index rose 48.4 per cent during the same time period. Nationally, the increase in new housing prices to slow for the eighth straight month, but still increased 7.8 per cent from June 2006.
While prices may be rising, developers aren't making any extra money on home sales, said Caton. The costs of labour, fuel and materials drive up expenses for everyone.
"Land developers are rushing to bring land to the market because they know it's in demand," he said. "But we're not seeing a huge increase in revenue by the developer. A lot of it is going out in higher costs for labour and supplies."
Perry Kenke of River Ridge Homes said Caton is right. Higher labour and material costs create larger expenses for the developers while building houses, leading to higher price tags on the buildings.
Kenke's company is currently building 20 homes in and around Saskatoon, and though interest in homes dipped in July, he expects the fall building season to be busy.
"It slowed down in the first few weeks of July, but it has picked up again. We get a few e-mails and calls (inquiring about homes) a day now," he said, citing summer vacations as a reason for the drop in interest last month.
ckyle@sp.canwest.com
© The StarPhoenix (Saskatoon) 2007
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Housing crunch leads to bidding wars
By Janet French, The StarPhoenix
Published: Tuesday, April 03, 2007
Darla Read has a house-hunting headache.
The 26-year-old communications officer has been looking to buy in Saskatoon for a month. Thanks to the city’s hot real estate market, what she’s finding are run-down houses not worth the asking price. When she has made an offer, she’s been outbid — once by just $1,000.
“It’s extremely frustrating,” she said.
According to numbers released Monday by the Saskatoon Region Association of Realtors, the average selling price for a Saskatoon home in March was more than $200,000. That’s nearly $45,000 more than the average city home was selling for a year ago.
“That made my heart sink, because I can’t afford that,” Read said. “I’m considered a professional. I have a degree, I have a decent job and my boyfriend has a decent job. We still had to get my dad to co-sign to get a loan that would be worth anything to be able to buy a house.”
One house she looked at last week was in good condition, but would have needed new flooring and renovations in the basement. The seller got 12 offers and it sold for $26,000 more than the asking price.
Other homes for sale in her price range aren’t worth a second look, she said. One had brown spots on the ceiling and peeling plaster. Her real estate agent advised her to walk away.
“It was not worth what it was listed for,” Read said. “The scary thing is, these people might actually get what they’re asking, because there’s such a demand.”
Customer service agent Becky Hanson and her boyfriend, Colby Bulych, both 23, are also flustered.
One Mount Pleasant house they saw was “a real fixer upper” with an asking price of $119,000. New paint was needed inside and out, the bathroom cried out for a redo and the green shag carpet had to go, she said.
Although their real estate agent estimated at least $20,000 in work was needed on the home, it sold for $150,000.
Some homeowners are so confident, they aren’t bothering to tidy up their houses before potential buyers come around to look, she said.
Hanson was also surprised to hear her agent tell her not to make her offers subject to a housing inspection, “because (the sellers) just won’t even look at it.”
She said, “$150,000 is a lot for a house that you’re |