Residential Home Sale Numbers Down - Average Selling Price Up

Saskatoon REALTORS® assisted 313 buyers with the purchase of a home in the month of August. This number was down 20% from August 2009 when 392 homes were sold. Year to date 2,527 homes have sold, down 6% from 2009 when year to date numbers stood at 2,696. The increase in new home sales has somewhat impacted the resale market.
Increased sales activity in the mid to upper price range homes contributed to the 8% rise in the average selling price in August which stood at $305,866.00. The average selling price in August 2009 was $282,320.00. The year to date figure stands at $292,323.00 up 5% from 2009 when the average was $278,193.00. The highest sales activity remains in the $300,000.00 to $350,000.00 price range.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

645 properties were placed on the market for sale in the month of August; this number is up 25% from August 2009 when 517 homes were listed for sale. The year to date listing number stands at 5,033. Home buyers had 1,355 homes to select from at the end of August on par with last month when 1,334 homes were for sale.

In areas surrounding Saskatoon e.g. Martensville Warman and Dundurn unit sales were down 6% with 90 properties being bought as compared to August 2009 when 96 homes were purchased. The average selling price was $259,338.00 down 4% from August 2009 when the average was $270,488.00. Listing numbers were up 25% in the areas around Saskatoon with 248 properties being listed as compared to 199 in August 2009.

Residential sale numbers are expected to remain on par or soften slightly for the remainder of the year. Interest rates are favourable, confidence remains strong in the local economy and new home sales continue to build momentum. These are all necessary components to maintain a stable market environment.

Harry H. Janzen, CAE
Executive Officer
Saskatoon Region Association of REALTORS®

Home starts growing

Sask. housing still lags behind boom years

By Bruce Johnstone, Saskatchewan News Network; Regina Leader-PostSeptember 1, 2010

Saskatchewan's home-building industry is rebounding from last year's slowdown, with 4,725 starts projected for 2010, a 25 per cent increase over 3,866 in 2009, Canada Mortgage and Housing Corp. (CMHC) said in its latest housing market outlook.

Next year, total housing starts are expected to increase by a more modest two per cent to 4,900, well below the 6,828 starts recorded in 2008, but higher than pre-2007 housing activity levels, a CMHC analyst said Tuesday. "After the economic downturn (in 2009), we had a quick recovery in the housing market," said Lai Sing Louie, regional economist with CMHC in Calgary. "Now we're looking at a period where the market is starting to moderate again."

Louie said 2010 housing starts bounced back strongly after a weak year in 2009, which saw nearly 3,000 fewer starts than the previous year. But the 25 per cent increase forecast for 2010 is not sustainable, hence the projected two per cent increase in starts in 2011. "During the economic downturn, we had a sharp contraction in housing activity. Then we had a lot of stimulus and the housing market bounced up quite quickly. Now we're in a period where we're going to move sideways a little more than up and down." Saskatchewan's housing sector is not expected to return to the boom years of 2007 and 2008, when housing starts soared to record heights borne on the wings of a booming provincial economy. "We're coming back, but we're not going to see 6,800 housing starts like we did in 2008. We're moving in the right direction." Louie said.

Saskatoon is expected to have 1,500 starts in 2010, up from 1,428 in 2009, and rising to 1,750 in 2011. Regina is forecast to see 970 housing starts in 2010, up from 930 in 2009, rising to 1,100 in 2011. By comparison, Saskatchewan's resale housing market will see slower growth in the next two years, with total sales on the multiple listing service (MLS) of 10,500 in 2010 and 10,800 in 2011, slightly below the 10,856 MLS sales posted in 2009.

Increased inventory of resale homes on the market, rising prices and competition from new home construction are the main reasons for the slower pace of home sales, he said. "We're projecting (2010 MLS) sales transactions will be a little bit below 2009 levels," Louie said. "We're looking for some price moderation by year-end, but we expect prices to be higher than they were last year."

For Saskatchewan, the average MLS sales price is expected to rise to $239,250 in 2010, up from $233,700 in 2009, then rising again to $246,200 in 2011. But resale housing prices haven't contracted, like they did in Alberta in 2009, where the average MLS price fell to $341,200 from $352,855 in 2008. "In Alberta, lots of the markets are buyers' markets. In Manitoba, Winnipeg is still a sellers' market. In Saskatchewan, the markets are sort of in the middle. They're balanced."

In Saskatoon, the average MLS price is expected to reach $285,000 in 2010, up from $278,900 in 2009, increasing to $295,000 next year. Regina's average MLS price is forecast to hit $254,000 in 2010, up from $244,100 in 2009, rising to $263,000 in 2011. Across the Prairies, housing starts in 2010 will rise significantly in all three provinces, with Alberta experiencing the largest increase, CMHC said.

Prairie housing starts will increase by more than 35 per cent from last year. "Prairie housing starts are expected to rise again in 2011, but the growth rate is projected to ease to under six per cent," Louie said in the outlook report.

© Copyright (c) The StarPhoenix

COMMERCIAL HAPPENINGS IN SASKATOON

Job Growth Prospects in Saskatoon

The Saskatoon job market has been impacted significantly by construction and these effects are not likely to slow down any time soon. Globally construction expenditures of approximately $30,000-40,000 result in the creation of one man year of employment including all spinoff employment in other industries. For example a $100,000 construction project in Saskatoon creates 2.5 to 3 man years of employment including things like the copper wire factory that make the wire used and the mine that mines the copper. Direct impact in Saskatoon is probably closer to $100,000 in expenditure to create one man year of employment in our local area.

Applying these numbers to ongoing projects indicates there are about 5000 man years of employment created with projects underway at the University of Saskatchewan with another 10,000 man years to be created with construction planned in the next 5 years. The new Circle Drive bridge is creating about 2000 or 2500 man years of employment, planned development at River Landing will create perhaps 4000 and the Jansen mine will create at least 8,000 man years of direct employment during construction (20,000 with spin offs) and 1000 a year on going in operations.

Regardless of the result of PCS takeover the BHP Jansen mine will go ahead. According to the 200 page impact assessment on BHP’s website 6 years out the mine will only be producing a million tons of potash a year and it isn’t until 2026 that it will be at full production of 10 million tons a year.

It would appear as the public sector stimulus expenditures follow the private sector projects like Lake Placid and the Jansen mine will exert even more pressure on our scarce labour pool. It is also almost certain that the scope of these projects will place even greater demands on our infrastructure forcing even greater public spending to provide services to these sites. The BHP mine for example will consume about $40,000,000.00 worth of natural gas (at today’s rates) annually along with 7 million cubic meters of water (twelve billion pounds). This is approximately 1.25 months water consumption for the entire city of Saskatoon.

Often it is the local businesses and residents that are not able to grasp the scope of the economic development and the effect it will have on them. For us as REALTORS® it is important that we remind our clients that demand for commercial space and demand for housing is not likely to recede anytime soon.

Residential Home Sales Soften in the Month of July

Home buying activity was down slightly in the month of July with 357 homes selling down 18% from July 2009 when 438 homes were sold. Year to date unit sale numbers are down 4% with 2,217 homes having sold as compared to 2,304 selling in 2009 at this time of year. The majority of the sales activity remained in the $300,000.00 to $350,000.00 price range.

The average selling price remained strong at $289,715.00 up 2% from July 2009 when the average was $283,531.00. Year to date the average selling price is $290,515.00 up 5% from 2009 when the average year to date number was $277,490.00. The higher average selling price indicates continued strength in the mid price range homes. In July it took 39 days on average to sell a home.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Home buyers had 1,334 properties to select from at the end of July. Inventory levels decreased from the month of June when 1412 homes were on the market. Listing inventory continues to balance with REALTORS® listing 550 properties in the month of July that number down 7% from July 2009 when 594 homes were placed on the market for sale. Year to date listing numbers are on par with 2009 with 4,389 having been listed for sale.

Similar sales and listing activity was seen in the areas around Saskatoon e.g. Martensville, Warman, Clavet and Dundurn. Unit sales softened with 71 properties selling down 34% from July 2009 when 108 properties sold. The average price increased to $284,158.00 up 12% from July 2009 when the average selling price was $254,123.00. Listing numbers were down 15% with 230 properties being placed on the market. Year to date 1,643 have been placed on the market.

Market demand remains steady, interest rates are favorable and job growth continues. Similar market conditions are expected for the remainder of the summer.

Harry H. Janzen, CAE
Executive Officer
Saskatoon Region Association of REALTORS®
 

Residential Unit Sales Softened in the Month of June

The second quarter of 2010 ended with 1,863 year to date residential unit sales on par with 2009. The unit sales number for the month of June declined by 17% with 364 properties being sold as compared to 441 properties selling in June 2009. However the average selling price in June was $295,963.00 up 7% from June 2009 when the average was $276,194.00. This increase indicates strong activity in the mid to upper price range of homes. The $300,000 to 350,000.00 price range continues to experience the greatest sales activity
The average residential selling price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.
REALTORS® listed 676 homes in the month of June a similar number to June 2009 when 669 homes were placed on the market. Year to date listing numbers are on par with 3,838 properties being listed for sale. Consumers had 1,412 homes to select from at the end of June.
Sales activity in the smaller communities around Saskatoon e.g. Martensville, Warman, Dundurn remained very balanced with 101 units selling. That number was up 3% from June 2009. The average selling price was up 1% at $254,203.00, the year to date average selling price in these areas is up 4% at $252,788.00. Listing numbers were down 4% with 246 properties being placed on the market for sale as compared to 257 in June 2009.
Similar market activity is expected in the third quarter. New home sales are brisk, interest rates remain attractive, job creation continues to increase and regular in migration is taking place. In addition consumer confidence in the local economy also remains strong. All of these are necessary components of a healthy real estate market environment.
Harry H. Janzen, CAE
Executive Officer
Saskatoon Region Association of REALTORS®

While the rest of Canada has been otherwise occupied, Saskatchewan has been morphing into one cool destination.

Thanks to the province's abundant natural resources, its cities have been enjoying an economic boom. In Saskatoon, prosperity has heightened the appeal of its vibrant downtown and lively cultural scene. With 150 shops, restaurants and theatre, the Broadway District, for one, is a noted destination for sophisticated dining and entertainment.

For a spectacular view of downtown by the South Saskatchewan River, take a stroll along the Canadian Pacific Railway Bridge. From there the adventurous can access the 60-kilometre Meewasin Valley Trail that follows both banks of the river and leads into the countryside.

The Ukrainian Museum of Canada is notable for its exquisite collection of painted Easter eggs and the Mendel Art Gallery for its Canadian and European art. Kids will enjoy the 1910 Boomtown exhibit at the Western Development Museum that recreates daily life during Saskatoon's first economic boom.

Live theatre is a vibrant part of the cultural scene, and festivals run year round. The annual Fringe Theatre Festival from July 29 to Aug. 7 (25thstreettheatre.org) is always a highlight, as is the SaskTel Saskatchewan Jazz Festival June 25 to July 4 (saskjazz.com). Regina hosts the popular Regina Folk Festival Aug. 6 to 8 (reginafolkfestival.com), described by one commentator as "Haight-Ashbury with Tilley Hats." Saskatchewan's capital has a thriving culture of dance, music and the arts.

There is also a burgeoning gourmet scene as local chefs redefine Prairie cuisine and find enterprising ways to showcase regional foods. To relax and enjoy a natural oasis in the heart of the city, visit the Wascana Centre, a 2,300-acre park and lake. Here you can rent bicycles or paddle boats, bird watch at the Waterfowl Park or listen to an outdoor concert. Nearby are a handful of interesting museums and art galleries. The MacKenzie Art Gallery has a one of the best collections of Canadian art. Both the Royal Saskatchewan Museum and Saskatchewan Science Centre are geared to families with multimedia exhibits and displays. You can also find out how the RCMP always get their man at the RCMP Heritage Centre, a stunning modern structure designed by renowned architect Arthur Erickson.

Football season starts in June and ends in November. Take in a Saskatchewan Roughriders game to see "Rider Pride" in action and witness the diehard fans sporting their creative headgear made from local watermelons.

Less than 30 minutes away in the beautiful Qu'Appelle Valley you'll find the massively popular Craven Country Jamboree from July 15 to 18 (cravencountryjamboree.com), which draws about 23,500 people every year. Go a little farther and you'll find yourself wandering the natural sands of Regina Beach. Head west and explore Saskatchewan's shady past in the "gangster tunnels" of Moose Jaw and be pampered at the city's Temple Gardens Mineral Spa Resort.

Follow the Louis Riel Trail north from Regina to Prince Albert, visiting Metis communities and celebrating their heritage through rodeos and jamborees. Or, just south of Regina, stop in at one of the many charming communities that celebrate bilingual culture, such as Gravelbourg which styles itself "a touch of Europe on the Prairies."

No matter where you go, you'll be surprised by the diversity of the province's landscape and communities.

CALENDAR

Windscape Kite Festival, Swift Current (June 19 to 20; www.windscapekitefestival.ca)

SaskTel Saskatchewan Jazz Festival, (June 25 to July 4; saskjazz.com)

Craven Country Jamboree, Craven Valley (July 15 to 18; www.cravencountryjamboree.com)

Saskatoon Fringe Theatre Festival, (July 29 to Aug. 7; www.25thstreettheatre.org)

Regina Folk Festival, (Aug. 6 to 8; www.reginafolkfestival.com)

Residential Housing Market Remains Steady

The residential housing market remained steady in the month of May. Unit sales were down by 4% with 354 units selling as compared to 369 units selling in May of 2009.Year do date unit sales are up 5% with 1501 units having sold.

The average price in May was $294,516.00 up 5% from May 2009 when the average selling price was $279,287.00. Year to date the average selling price is also up 5% at $289,324.00.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Year to date REALTORS® have sold $434,275,000.00 of real estate up 10% from 2009 when year to date when $393,349,000.00 of real estate had sold. Listing numbers are up 8% from May 2009 with 779 properties being listed in May. Year to date numbers are on par with 3,162 properties being placed on the market. Home buyers had 1403 homes to select from at the end of May.

The market softened slightly in communities around the city. Unit sales in e.g. Martensville, Warman, Clavet and Dundurn had 86 sales take place down 11% from May 2009 when 97 homes were sold. The average selling price for May in these communities was $271,192.00 that number up 14% from May 2009 when the average was $238,904.00. Listing numbers were down slightly in the month of May with 272 properties being placed on the market down 4% from May 2009 when 284 homes were placed on the market for sale.

Consumers are expressing confidence in the local economy as evidenced by their buying patterns. New home construction is doing well, retail sales are strong and when coupled with low interest rates conditions are favourable for a vibrant market environment. Sales and listing activity is expected to remain similar to the end of the second quarter.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

Residential Real Estate Market Gains Momentum in April

All statistical measures were up in the month April beginning with units sales, up 6% with 372 homes being purchased as compared to 352 homes purchased in April 2009. Year to date numbers remain strong with 1147 units being purchased as compared to 1056 in 2009. REALTORS® sold $111,307,000.00 of real estate in April up 15% from April 2009. Year to date $330,016,00.00 of real estate has exchanged hands up 14% from 2009.

The average residential selling price was $299,214.00 that number up 9%from April 2009 when the average $275,586.00. The year to date average selling price stands at $287,722.00 up 5% from 2009.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Eager home buyers had a slightly increased inventory to select from at the end of April with 1258 homes being for sale. The number of listings taken by Saskatoon REALTORS® in the month of April was up by 13% with 784 properties being placed on the market as compared to 693 in April 2009. Year to date 2383 homes have been listed for sale.

Real estate activity was up in areas surrounding Saskatoon e.g. Martensville, Warman, Clavet and Dundurn. Unit sales were up 39% with 115 properties being purchased. The average selling price was $233,792 down 10% from April 2009 when the average was $260,956. This decline in the average selling price indicates more properties selling in the lower to mid price range.

All indicators point to a stable market conclusion for the second quarter. The market is fairly balanced with sufficient inventory being available for home buyers. Consumer confidence and optimism in the local and provincial economy is high. Job creation and availability remains steady. New home starts are steady and interest rates are favorable, all necessary components to maintain vibrant market.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

 RESIDENTIAL SALES UP IN FEBRUARY

Warmer weather and possibly the Olympic spirit brought numerous home buyers out in the month of February. 236 homes were purchased in February that number up 8% from February 2009 when 219 homes were purchased. The average selling price was $291,056.00 that number up 4% from February 2009 when the average was $280,784.00.

The average number of days to sell a property in February was 34 days indicating a steady active market environment.  The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

REALTORS® listed 464 residential properties in February that number down 18% from last year at this time verifying continued inventory correction. Year to date listing numbers are down approximately 20%. Home buyers had 866 home to select from at the end of the month.

Residential sales activity in communities around Saskatoon was down slightly from 2009.  38 homes were purchased in February as compared to 193 being purchased in February 2009. The average selling price was up 3% at $265,011.00. Year to date 307 properties have been listed in these areas around Saskatoon, this number represents a 7% decline from 2009.

Consumer confidence is certainly being verified by the number of home buyer inquires, open house attendance and increased daily REALTOR® website hits. Interest rates are favorable; there is a reasonable inventory level in both new and existing homes, all necessary components for a healthy market place. Activity is expected to increase as we approach the spring market.

Harry H. Janzen, CAE, Executive Officer

Saskatoon Region Association of REALTORS®

Record Breaking Square Footage in Saskatoon Office Market

- Saskatoon office market leads the country in positive absorption rates

and is positioned for growth after near zero vacancy -

March 4, 2010, Saskatoon – Colliers McClocklin reports the Saskatoon downtown office market has reached a record breaking two million square feet and will continue to grow as new downtown office developments near completion in 2010.  “Saskatoon is in a strong position to accommodate new business to the downtown core as additional office space enters the market,” says Tom McClocklin, president, Colliers McClocklin. “This is a welcome change after experiencing/following restrictive vacancy levels.”

Downtown Saskatoon Expands

Saskatoon is experiencing its third consecutive year of positive absorption in the downtown office market, indicating strong demand despite the recession. Throughout 2009, Saskatoon led Canada with 3.7% of Class A absorption as compared with Vancouver (-2%), Regina (1%), Toronto (1%), Calgary (-3%), and Edmonton (-1%). The last quarter of 2009 saw the completion of Discovery Plaza, increasing downtown office inventory by 50,000 square feet.  With the introduction of BHP Billiton into Discovery Plaza, Saskatoon experienced 16,000 square feet of positive absorption, leaving 31,000 square feet of new inventory available for lease.

Stable Average Vacancy Rate

The overall downtown office market remains healthy at 6.14% and is prepared for future tenants.  The introduction of Discovery Plaza increased the overall downtown office space vacancy by 1.54% and the rate will rise again with the April 2010 completion of the Capitol Centre.

Emergence of Suburban Office Market

Saskatoon is experiencing a shift from a traditional downtown core office market to suburban office buildings.  Supply and demand for suburban office space is increasing as a result of the historical short supply of downtown office space and related parking.

2010 Forecast Positive

The Saskatoon office market forecast for 2010 is positive. The completion of Discovery Plaza and the Capitol Centre gives the downtown core the necessary inventory to welcome new businesses. Construction costs for new inventory have increased net asking rates to a level substantially greater than existing inventory rates. New office buildings in both downtown and suburban markets are offered at $23 to $30 per square foot on a net rental basis. Many existing tenants paying rates below sustainable market value will observe an increase in renewal rates.  Despite the rise in rental rates, Saskatoon maintains the lowest average Class A rental rates in

western Canada.

 January Home Sale Numbers Soften Slightly From January 2009

Saskatoon REALTORS® assisted 179 homebuyers with the purchase of a home. This number was down 16% from January 2009 when 212 homes exchanged hands. The average residential selling price was $270,191.00 down 3% from January 2009 having an average residential selling price of $ 278,939.00. The average selling price declined slightly due to the increased number of sales in the $ 250,000.00 to $275,000.00 price range. This price range had the highest number of unit sales in January.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Inventory levels continued to correct in the month of January with fewer listings being taken. REALTORS® listed 394 residential properties this number down 23% from January 2009 when 512 properties were listed for sale. Homebuyers had 736 homes to select from at the end of January as compared to January 2009 when 1156 homes were available for sale. January’s number is up slightly from December 2009 when 703 properties were available for purchase.

The residential dollar volume of $48,364,000.00 was down 18% due to lower sales numbers and increased activity in the mid price range of homes. Dollar volume is expected to increase significantly as the year 2010 progresses.

The real estate market in areas surrounding Saskatoon was very active. Unit sales were up 17% in January with 34 units selling as compared to 29 units selling in January 2009. The average selling price was $214,976.00 up 5% from January 2009 when the average selling price was $204,166.00. January dollar volume was $7,309,200.00 up 23% from January 2009.

The real estate market is expected to remain steady for the first quarter of this year. Days to sell in January were 38 days on average within the city limits and 59 days to sell being the average in areas surrounding the City of Saskatoon. Consumer confidence remains high, interest rates are low, all contributing to a healthy real estate market.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

2009 Residential Home Sales Surpass 2008

Residential Home Sales Remain Active in November

The residential resale market remained strong in the month of November with 254 properties being sold that number up 41% from November 2008 when 180 homes sold. The 3,611 year to date sales number is up 8% from 2008 when 3,359 homes sold.

Year to date Saskatoon REALTORS® have sold more than one billion dollars of residential real estate.

The $1,003,976,000.00 number represents a 3% increase over the 2008 year to date volume number of $970,223,000.00.

The average selling price for the month of November was $ 278,885.00 remaining on par with November 2008. The year to date average residential selling price is $278,033.00 down 4% from year to date number in 2008. The decrease indicates an increase in the mid price range homes being purchased by more first time and move up home buyers. Homes took 43 days on average to sell in November. The days to sell number has remained on par for the past 6 months.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

MLS® listing inventory continued to correct in the month of November. Home buyers had 877 residential homes to select from at the end of November. This inventory number includes 288 condominium units.

REALTORS® listed 356 properties in November that number down 16% from 2008 when 425 units were placed on the market for sale. Reduced inventory is contributing to a more balanced real estate environment.

Sales activity in small town markets surrounding Saskatoon was strong with 75 properties having sold that number up 168% from 2008 when 28 properties exchanged hands. The sales number is on par with 2007. The average selling price in these areas for November was $280,453.00 up 24% from November 2008 which had an average selling price of $226,546.00.

The real estate market is progressing as real estate professionals forecasted. Inventory levels are returning to more normal numbers and sales activity remains steady. The average selling price has remained steady throughout 2009 indicating a stable environment. Similar market activity is expected as we move into 2010.

Harry H. Janzen, CAE

In the month of December Saskatoon REALTORS® assisted 211 buyers to fulfill their home ownership dreams, this number up 31% from 2008 when 161 homes were purchased. Year to date 3,822 residential units have been sold up 9% from 2008 when 3,520 homes were sold at this same time.

The average residential selling price remained steady at $291,554.00 up 9% from December 2008 when the average selling price was $266,420.00. Year to date the average selling price was $ 278,779.00 down 3% from 2008. In 2008 the dollar volume remained high but unit sales were down slightly thus the reason for the slightly lower overall average selling price.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

In 2009 REALTORS® sold $ 1,065,500,000.00 of residential real estate in Saskatoon. This number represents an increase of 5% from 2008 when $ 1,013,117,000.00 was sold. The highest amount of activity in 2009 was in $300,000 to $350,000.00 price range followed by significant activity in the $275,000.00 to $300,000.00 price range.

Listing inventory continued to correct throughout 2009. Home buyers had 703 homes to select from at the end of December as compared to 1,127 in December 2008. REALTORS® listed 212 properties last month down 13% from December 2008 when 245 homes were placed on the market for sale.

Sales activity in communities e.g. Martensville, Warman, Clavet and Dundurn surrounding Saskatoon was also very high during 2009. 47 properties were purchased in December that number up 68% from December 2008 when 28 properties were purchased. Year to date 951 properties have been sold up 9% from 2008 when 869 properties were sold. The average selling price was $258,996.00 up 15% from 2008 when the average price was $224,421.00.

At year end consumer confidence in the local economy remains optimistic a necessary component for consumer spending. All indicators point to a stable, steady real estate market in 2010. Unknown variables capable of affecting the market place are provincial revenue streams e.g. potash and oil prices.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

October Home Sales Ahead of '08

By Cassandra Kyle, The StarPhoenixNovember 3, 2009

Home sales in Saskatoon were on the rise in October, with 311 houses sold in the region for an average price of $274,759, says new data from the Saskatoon Region Association of Realtors (SRAR).

The number of homes sold last month topped October 2008, when 213 homes were sold, by 46 per cent. The average price in October dropped by four per cent compared to the same month last year, when the average selling price reached $285,547, SRAR said in a news release.

An increase in sales activity in the $250,000 to $275,000 price range contributed to the four per cent decline in October's selling price, the association said. Activity remained active, it added, in the $300,000 to $350,000 price range.

For the first time in more than 12 months, active listing inventory dropped below 1,000 in October, when 971 homes were listed for sale. This compares to the 1,667 homes on the market at this time last year.

Outside of the city, 90 homes sold last month, an increase of eight per cent over October 2008 when 56 houses were purchased. The average selling price for these homes reached $251,319 in October, a 23 per cent jump from the same month last year when homes outside the city proper sold for $203,956.

SRAR believes real estate market activity will remain similar and steady throughout the remainder of the year.

Meanwhile, the Canada Mortgage and Housing Corp. (CMHC) said Monday it believes housing starts in the Saskatoon region will end this year slower than 2008, but a construction rebound will hit in 2010.

"Housing markets have cooled from the historically high levels of starts and price gains seen in 2007 and 2008," said Paul Caton, the CMHC's senior market analyst for Saskatchewan. "The slower pace of housing activity in 2009 has allowed for a reduction of inventories, setting the stage for an increase in activity in 2010."

The agency said after the market moderates to 900 single-detached starts this year, starts will rise to 1,000 units next year, while multiple-family home starts will drop to 200 this year and rise to 400 next year.

Resale activity will reach nearly 3,700 units this year and 3,900 in 2010, the CMHC predicted, with the average price of a home totalling $280,000 in 2009 and $286,000 in 2010.

As for apartments, the corporation anticipates vacancy rates will have risen to two per cent this fall and will be three per cent next year. The average rental rate for apartments in the region is expected to rise to $880 next year from $875 this year.

Third Quarter Residential Unit Sales Up from 2008

The real estate market in Saskatoon and surrounding area was brisk in the month September.
REALTORS® assisted 351 homebuyers in the purchase of a home, that number up 43% from September 2008 when 242 homes were sold. The residential year to date unit sales number stands at 3,048 up 3% from 2008 when 2,996 homes exchanged hands.
The average residential selling price in September was $279,457.00 that number down 6% from September 2008 indicating more activity in the low to middle price range homes. The average selling price has remained steady throughout 2009 beginning in January at $278,545.00 reaching a high in July of $283,871.00. The strongest sales activity remains in the $300 to $350,000.00 dollar price range.
The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices
vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.
REALTORS® sold $ 98,089,304.00 of residential real estate in the month of September up 34% from 2008. Year to date dollar volume stands at $848,202,479.00. Listing inventory continued to correct with
fewer properties being listed and more current inventory being sold. REALTORS® placed 516 properties on the market in September that number down 37% from September 2008 when REALTORS® listed 825 homes. Home buyers had 1097 properties to choose from at the end of September.
Sales activity in surrounding communities remained strong with 119 homes being sold up 65% from September 2008 when 72 homes exchanged hands. The average selling price was $271,401.00 up 18% from September 2008 when the average selling price was $229,271.00.
Similar sales activity is expected to remain throughout the four the quarter of 2009. Market stability will continue to improve as inventory levels decline. The resale and new home market are being fueled by low interest rates, product availability and consumer optimism in the local economy.

Harry H. Janzen, CAE
Executive Officer
Saskatoon Region Association of REALTORS®

Residential Resale Market Continues Correction Pattern

Saskatoon REALTORS® assisted 393 home buyers to fulfill their dream of home ownership in the month of August. This number up 76% from 2008 when 223 homes were sold, this number is also on par with 2007 when 397 homes were sold. Year date 2,697 homes have sold also on par with 2008.

The average selling price stabilized at $281,871.00 in the month of August and was on par with 2008 when the average selling price was $279,722.00. Year to date the average selling price is $278,129.00 down 4% from 2008 when the average year to date sales figure was $288,924.00.  The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Inventory levels continued to stabilize in the month of August. Home buyers had 1148 homes to select from at the end of August down 32% from August 2008 when 1676 homes were on the market. That number also down from the 1291 homes available last month and down significantly from our record high inventory number of 1748 homes for sale in September 2008.

REALTORS® listed 517 homes in August that number down 36% from 2008 when 805 homes were listed that number also down from 2007 when 686 homes were placed on the market for sale.

Home sales in areas surrounding the city were also very active in the month of August with 96 properties selling that number up 22% from 2008 when 79 homes were sold. That number also on par with 2007 when consumers purchased 93 homes. The average price remained steady in these areas at $270,488.00 up 9% from 2008 when the average selling price was $248,556.00.

All indicators point to similar activity in the residential home sales market as we continue into fall. Consumer confidence remains strong; the job market is steady and interest rates are low, all necessary components for an active market. Inventory is expected to decline during the next few months furthering market stability.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

Real Estate Market Continues to Balance in the Month of June

 

The real estate market continues to balance with increased sales numbers and a reduced inventory of listings on the market.

Residential unit sales rebounded in the month of June with 442 properties exchanging hands as compared to June 2008 when 321 units sold representing a 38% increase. Year to date 1,867 residential units have sold down 13% from last year’s feverish activity when year to date 2,153 units had sold.

The Average residential selling for the month of June was $276,867.00 down 11% from last year’s all time high of $310,386.00. Year to date the average price stands at $276,232.00 down 5% from 2008 with an average year date figure of $289,270.00.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Saskatoon REALTORS® listed 669 properties in the month of June the number down 26% from June 2008 when 904 homes were placed on the market. The year to date figure is also favorable, that number 3,825 listed properties down 11% from 2008 when 4,310 properties were listed for sale. Home buyers had 1439 homes to select from at the end of June that number down from last month when 1532 homes were available for purchase.

The average selling price for homes in areas surrounding Saskatoon was $ 251,354.00 that number up 17% from June 2008 when the average price was $208,760.00. Unit sales were also up 14% with 99 units selling as compared to 85 selling in June2008. The number of listings taken followed the city trend with 257 homes being listed down 11% from June 2008 when 285 homes were placed on the market for sale.

Similar market activity is expected moving into the third quarter of 2009. Market conditions are favorable with low interest rates, steady employment numbers and a generally strong consumer confidence in the local economy.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

 April’s real estate market continued to correct with fewer listings being taken easing higher than normal inventory levels. Saskatoon REALTORS® assisted 353 buyers to find their dream home. That number down 15% from April 2008 when 413 units were sold. Unit sales figures were ahead of 2005 and 2006.

·         2009 - 353 units sold

·         2008 - 413 units sold

·         2007 - 475 units sold

·         2006 - 280 units sold

·         2005 - 332 units sold

REALTORS® placed 694 properties on the market in April that number down 23% from 2008 when 896 homes were listed for sale. Buyers had 1499 properties to select from. That number down substantially from a market high of 1748 homes for sale in September 2008.

The average selling price for April was $275,455.00 that number down from April 2008 when the average was $306,031.00.

·         2009 - $275,455.00

·         2008 - $306,031.00

·         2007 - $220,799.00

·         2006 - $155,633.00

·         2005 - $146,714.00

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

In the month of April the $300 - $350,000.00 price range saw the greatest sales activity with 62 properties being sold. The $225 – 300,000 range was also very active. Upper price range activity remains steady with the following year to date sales figures.

·         $350 – 400,000.00 - 90 sales

·         $400 – 450,000.00 - 49 sales

·         $450 – 750,000.00 - 51 sales

All Indicators point to similar activity for the next few months. The Saskatoon and Saskatchewan economy is a bright spot given the global economic situation. Inventory levels will remain higher than normal for the year but should continue to decline to a more normal number towards year end. Consumer confidence in the local economy, low interest rates and a sustained job market will all contribute to a quicker real estate market recovery.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

First Quarter Real Estate Unit Sales Trend Remains Steady

First quarter residential unit sales maintained a similar pace to the last few months. Saskatoon REALTORS® sold 283 residential properties in the month of March that number down 28% from March 2008 when 391 units were sold. Sales numbers are on par with 2005 and 2006.

REALTORS® sold $75,481,000.00 of real estate in March that number down 33% from March 2008 when $113,206,000.00 of real estate was sold. The drop in dollar volume is directly related to the reduced number of unit sales. Year to date REALTORS® have sold $193,581,000.00 of real estate.

The average residential selling price was $266,720.00 that number down 8% from March 2008 with an average selling price of $289,530.00. These numbers indicate a slight softening of upper price range home sales. Year to date the average selling price remains on par with 2008 at $274,584.00.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

In the month of March the $275 - $300,000.00 price range saw the greatest sales activity. 23 homes sold in the $400,000.00 plus price range. Year to date 69 properties have sold over $ 400,000.00 with 3 homes selling for $1,000,000.00 +.

An inventory correction appears to have begun. Saskatoon REALTORS® listed 662 homes in March that number on par with 2008. Year to date 1,742 homes have been placed on the market. Buyers had 1435 properties to select from at the end of March. It will likely take the remaining part of 2009 to reduce the current larger than normal inventory level.

Confidence in the Saskatoon and Saskatchewan economy remains strong. Market activity and expectation are directly related to the employment environment. The Conference Board of Canada predicts an increase in GDP for our province in 2009; in addition employment numbers are also expected to increase. The necessary fundamentals appear to be in place for Saskatoon to have a stable market for the remainder of 2009.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

 

Buyers get boost

Derrick Penner, Vancouver Sun

Published: Wednesday, April 22, 2009

 Consumers in a position to spend should get a quick boost from the Bank of Canada's record-setting interest-rate cut Tuesday as commercial banks respond with corresponding reductions in some of their important rates.

Canada's major banks answered the central bank's 0.25-percentage-point cut in its key overnight lending rate with a similar reduction in the prime interest rate they charge their best customers, lowering it to 2.25 per cent.

That brought the banks' variable mortgage rates, which are tied to movements in the prime rate, down as well, giving existing mortgage holders a break and potentially more cash in their pockets.

The move also helps qualify more first-time buyers as the lower rates put mortgages into closer reach of lower incomes.

"This is a good thing for the home-buying market," John Turner, director of mortgages for BMO Financial Group, said in a conference call.

For example, Turner said, the prime-rate cut brought the rate on BMO's five-year variable-rate mortgage to 3.05 per cent from 3.3 per cent, which would reduce payments on a $200,000 mortgage by $26 a month.

While it doesn't sound like a lot, Turner said the reduction of rates "brings more consumers into the market who likely may not have qualified before."

Banks have flipped the relationship between their variable-rate mortgages and the prime lending rate as the Bank of Canada has slowly brought down its key overnight rate, the rate that it charges banks for short terms.

Where banks used to offer discounts to the rate, which were in the range of 0.75--0.85 of a percentage point a year ago, they now charge a premium of a similar amount on new mortgages.

Consumers who hold those existing, prime-discounted mortgage rates are seeing a boost to their spending power, Karl Madsen, B.C. regional manager for the mortgage broker Invis, said in an interview.

"If you [hold a mortgage] at prime minus [0.75 of a percentage point], your rate is at 1.5 per cent," Madsen said. "Think of that in terms of how that affects the economy."

Borrowers who opt to keep their payments at the same level will pay down their mortgages more quickly.

Those who opt to adjust their payments to account for their loans' lower interest have more money to spend, "which is good. We're trying to spur the economy, and that extra spending money available will do that."

Derek Holt, vice-president at Scotia Economics, said the Bank of Canada's statement that it expects to keep its overnight rate at its current low until at least the middle of next year was just as important a step for consumer spending.

"Saying that rates will be low for a long time, that impacts the whole short end of the bond-yield curve," Holt said, "and that should lead [to lower rates] even for two to three-year revolving and non-revolving consumer loans."

On the savings side, however, the cut in rates will likely also mean lower interest rates paid on savings accounts.

Scotiabank on Tuesday reduced the interest rate on its high-interest Power Savings account to 1.25 per cent from 1.5 per cent, and the rate on its Money Master to 0.5 per cent from 0.6 per cent.

"There are a bunch of offsetting influences on savings rates," Holt said.

Consumers worried about their jobs, or who have lost money on investments, might want to save more money, Holt said. The low interest rates, however, don't give much incentive to save a lot of money.

"In terms of the short-term cycle, rates are designed to discourage too much of a personal savings rate and ensuring you get enough spending [throughout the economy]," Holt said.

depenner@vancouversun.com

 Saskatchewan a jobs 'hot spot' in Canada

 (CNN) -- Normally, "hot spot" isn't the first phrase that comes to mind when talking about Saskatchewan, Canada.

But with most of Canada suffering from devastating job losses, this cold province is becoming exactly that.

It's an asterisk to the entire country when it comes to the economic climate, and Premier Brad Wall is shouting it as loud as he can.

"It's a great time to come to Saskatchewan," said Wall, who even called the Toronto Star newspaper to tout his province's economic success and let Ontarians know there were jobs for the taking.

"For those who are losing their jobs, we need them to know we have thousands of jobs open right now in both the private and public sector," Wall said. "We have a powerful story to tell, a story of success and that's something we want to share with those who are struggling."

Wall's province is one of the exceptions to the unemployment increases battering provinces across Canada. Saskatchewan's unemployment rate fell to 4.1 percent in January from 4.2 percent in December, making it the only province recording a decline. In Ontario and the city of Toronto, unemployment rates rose to 7.2 percent and 8.5 percent respectively. To the west, British Columbia shed 68,000 full-time jobs in January.

More Saskatchewan jobs should be on the way. To stave off any possible recession, Wall announced a $500 million infrastructure "booster shot" to help keep the economy strong.

"All across the country, industries are getting quite ill," Wall said. "We aren't immune to it. We see some impacts in terms of layoffs and new vehicle purchases slowing off, and so we want to be proactive in staying ahead of the curve."

On Tuesday, the Conference Board of Canada released a report that said Saskatchewan will likely continue to lead the nation in economic growth in 2009 because of the infrastructure investment and tax reductions.

The province has also been reaping the benefits of an influx from nearby Alberta. When the government in Alberta decided to raise the oil royalty rates, oil exploration and expedition companies decided to move their operations to Saskatchewan in hopes of making more money.

With the province's growing opportunities, David Montgomery, president of Calgary's Qwest Haven Relocation Services, said he is moving more people to Saskatchewan each day.

"Alberta has always been the gravy train of oil," said Montgomery, who is also a former resident of Regina, the capitol and second-largest city in Saskatchewan. "But with the new royalties, oil companies are saying 'Why stay here and make less when the opportunities right next door are even better?' Many other companies may start to follow suit."

Montgomery said people looking to move have said that cheaper land and insurance prices are among the other reasons they are headed to Saskatchewan.

"There, government insurance is cheaper than anywhere else in the country and it comes with your license plates," he said. "With the amount of jobs, cheaper opportunities and great way of life, the government there has made it very attractive to move there."

That means more business for Wall's province and more jobs coming to the area.

Not that there's a shortage of jobs. On Tuesday night there were nearly 6,000 private- and public-sector jobs on the Web site Saskjobs.com.

A constant stream of revenue from oil production and exports also buoys the economy in the province.

Saskatchewan is the largest producer of oil in Canada and exports more oil to the United States than Kuwait. It is the leader in uranium production and produces a third of the world's potash.

The province continues to keep ahead of the curve, Wall said, finding ways to diversify its resources and embark on ambitious green projects and new oil projects. The province is working with Montana on a $212 million climate change initiative that would create the first major greenhouse gas storage project in North America. The carbon dioxide from coal-fueled power plants would be stored in the ground in Montana and later be withdrawn for use in oil production.

Wall also said what may be the largest discovery of sweet, light crude oil in the southeast part of the province means it could have even more oil to work with. The Bakken Formation could potentially have 413 billion barrels of oil, according to the U.S. Geological Survey. That would be another huge untapped revenue gold mine.

Despite the growth of nearly all sectors across the board, Wall cautioned that it is possible his province may see economic stress, just later in the game than other places.

"We need to be circumspect and prudent about promoting our province," he said. "We are not immune; we do see the impacts. It isn't some sort of panacea or answer to economic questions that don't exist elsewhere. We are a bit of an asterisk that says there is some stress, but it's relatively calm here."

Wall encouraged people not to count out a move to the province based on stereotypes that it is "only winter here," and "all of the land is just rolling hills."

"'It's a beautiful, big place where life is great and right now there's also opportunity," he said. "I'm very, very biased, but I can't imagine a place I'd rather be, especially with what's going on economically around the world

Residential Home Sale Market Continued to Stabilize in February

When measured against the last two years which were an anomaly, the market has softened. When measured against activity over the last five years, market activity is on par and ahead of sales figures from 2004, 2005 and 2006. Home prices have increased considerably during this time. As a result of the significant swings in price, demand and in many

cases speculation the greatest challenge facing sellers currently is to adjust their expectations in this changed market place.

The February residential home sale market performed as forecasted. Unit sales are expected to soften during the first half of 2009. Demand for property in the month of February remained steady. REALTORS® sold 211 residential unit sales in February that number down 42% from February 2008 when 365 properties were sold. Year to date unit sale numbers are ahead of 2005 and 2006 sale figures.

Year to date REALTORS® have sold $118,569,000.00 of real estate, that number down 32% from 2008 when REALTORS® had sold $173,957,000.00. The average selling price remained steady for the month of February at $281,681.00 up 7% from 2008 when the average was $263,444.00. The average selling price was influenced by 25 sales in the over $400,000.00 price range. The average price indicates that sales activity focused on the mid to higher price ranges.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area.

Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member for a comparative market analysis.

Residential inventories remained above average for the month of February with home buyers having 1313 properties to select from at the end of the month. Inventory numbers are up 256 % from 2008 when 369 homes were available for purchase. Expectations are that it will take the better part of the year for this inventory to move through the market.

Residential sale trends in areas surrounding Saskatoon were on par with in city activity. Unit sales softened with 44 units selling in February, down 56% from the 100 unit sales figure from February 2008. The average selling price remained steady at $257,465.00 up 19% from 2008 when the average price was $217,012.00. Home buyers had 837 homes to select from at the end of the month.

Consumer confidence in the Saskatoon economy remains steady. REALTORS® are receiving numerous inquires of buyers from other provinces looking to move to our province. Markets are cyclical and the market in Saskatoon is at a low point and should begin to return to normal in the next few months. As a result, now is a good time to purchase a home or investment property.

Harry H. Janzen, CAE

Executive Officer

Saskatoon Region Association of REALTORS®

Saskatoon Real Estate Market Continues to Stabilize in January

Saskatoon REALTORS® assisted 213 buyers to fulfill their home ownership dream. This represents an increase in unit sales over the last three months. Compared to last years very active January market unit sales were down 29% when 300 residential units sold. Unit sales are on par with 2007 and ahead of 2005 and2006.

The average selling price remained steady at $278,545.00 an increase of 7% from January 2008 when the average selling price was $259,334.00. This increase indicates continued demand for mid to upper price range homes.

The average residential price is derived by taking the month’s dollar volume of homes sold and dividing that number by the unit sales number. The percentage of change should not be used unilaterally as prices vary from area to area.  Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to do a comparative market analysis.

Listing inventory remained steady with home buyers having 1156 homes to select from at the end of January. This number is down substantially from September 2008 when inventory levels peaked at 1,748. January inventory levels were higher than in January 2008 when 324 homes were available for purchase. 

REALTORS® sold $59,330,000.00 of real estate in the month of January that number down 24% from January 2008 when $77,800,000.00 of real estate was sold. The $300,000 to $350,000.00 price range continues to see the greatest sales activity followed closely by the $250,000 to $300,000 price range. In the month of January eight homes sold for more than $500,000.00.

Consumer confidence in the Saskatoon economy remains steady. REALTORS® are receiving numerous inquires of buyers from other provinces and the USA looking to move to our province. Markets are cyclical and the market in  Saskatoon is at a low point and should begin to return to normal in the next few months. As a result, now is a good time to purchase a home or investment.

The Saskatoon market is not exempt from global economic pressures but well positioned to weather these economic times. The most recent announcements by the provincial government to support municipalities with infrastructure support is great news for Saskatoon, as infrastructure spending assists in stimulating the economy.

The federal government’s increase in the amount buyers may use in the Home Buyers Plan will also encourage many first time buyers to enter the market place. REALTORS® across Canada have lobbied the government for more than eight years to see this increase to be approved by government. REALTORS® continue to lobby the federal government for the Home Buyers Plan to extend to all buyers not just first time buyers.

Harry H. Janzen, CAE Executive Officer Saskatoon Region Association of REALTORS®

 Growing population in Saskatoon a reason 2008 was strong year

By Cassandra Kyle, The Star Phoenix January 20, 2009

Call it a hat trick for Saskatoon. For the third year in a row, the city is expected to lead the nation in GDP growth, a new report says.

The Conference Board of Canada predicted Monday in its metropolitan outlook that Saskatoon will see a 3.3 per cent growth in its GDP in 2009. The city ended 2008 with an estimated GDP growth of 5.4 per cent, the highest rate in the country.

"I think it's a story that keeps on repeating itself," said Mario Lefebvre, director of the centre of municipal studies for the conference board. "It's almost sounding like same old, same old now where this economy has managed to find an incredible amount of dynamism over the years."

Apart from demand for agricultural and mining exports and positive consumer spending, Lefebvre said the reason 2008 was strong -- and 2009 will be -- is because of Saskatoon's growing population. The Conference Board of Canada expects the Saskatoon census metropolitan area's (CMA) population to rise to 252,000 by the end of the year, up from 248,000 in 2008 and 241,000 in 2007.

"I think this has been a very important result and one to add to the long series of nice results (Saskatoon) has been having, and ultimately it's taking (Saskatoon) right to the top. It seems almost never-ending," he said.

The conference board predicts the CMA will have a population of 264,000 by 2013.

Although the future looks rosy for the city, Lefebvre warns there will be challenges along the way. Hand-in-hand with a growing population comes managing and providing for an influx of people. The economic downturn will also affect exporters. The Conference Board of Canada warns in its report if the global economic downturn is longer and deeper than expected, regional exporters will suffer.

"This is still a very tough economic period -- one that most economists have not seen in a while, one that we were hoping we would never see again," he said.

"Saskatoon is still doing well and managing its own, but it's not as if it's completely immune from what's going on in the outside world."

However, the city is poised to continue to withstand the bulk of the downturn, said Alan Migneault, CEO of the Saskatoon Regional Economic Development Authority (SREDA). Although a long-term economic slowdown may eventually hurt exporters, Migneault says for now, Saskatoon's economy will grow because of them.

"When you think about the region of Saskatoon and what the companies in the region provide to the world, we are providing a lot of food and fuel and this is what people will need in the long run. And we expect that the Saskatoon region will continue to be growing as a result of that," he said.

The Conference Board of Canada report says Saskatoon's GDP rate will moderate to an average of 2.7 per cent for the years 2010 to 2013.

It expects the provincial economy to grow 3.6 per cent this year on demand for natural resources and agricultural commodities.

Saskatoon housing market to lead country: forecast

 By Joanne Paulson December 3, 2008 1:01 PM

Saskatoon’s housing market is expected to be one of few bright spots in Canada next year, with the average price rising by two per cent and sales going up by three per cent, Re/Max forecasted Wednesday.

In fact, Re/Max predicts that Saskatoon will see the highest increase in unit sales for 2009, out of 22 major markets. Regina is expected to hold the line, matching this year’s sales.

Re/Max says 11 of the markets surveyed will match or exceed 2008 sales levels, while the remainder will slide back.

Canada’s housing market performance will be contingent on economic performance, says Michael Polzler, executive vice-president with Re/Max in Ontario and Atlantic Canada.

“Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored,” said Polzler in a release.

“That said, we could see a bounce back as early as spring — if inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity.”

The average price of a Saskatoon home is expected to end 2008 at $289,000, up 24 per cent from 2007. Re/Max expects it to creep up to $296,000 next year.

Unit sales should end the year in the 3,600 range, down 19 per cent from 2007, but rise slightly to 3,700 in 2009.

In Regina, home sales will number 3,450 in both 2008 and 2009, while the average price of a home will jump to $250,000 next year from $230,000 this year, an increase of nine per cent.

Re/Max says global demand for Saskatchewan’s resources led the boost to the Saskatoon residential real estate market in recent years, but diminishing demand has dampened sales activity in the second part of 2008.

High inventory levels played a role in the local housing market. New home construction contributed to a 40 per cent increase in the number of homes listed for sale, and speculation was also a factor in the market.

Re/Max sees a more balanced market for 2009. First-time home buyers will play less of a role in the market, in part because financing options have become tighter, including the elimination of the zero-down payment option.

However, “more job opportunities at higher income levels are predicted to attract out of town purchasers to the city,” says the Re/Max report. “Former residents are also expected to return to Saskatoon, thanks to vastly improved economic conditions.”

© Copyright (c) The StarPhoenix

 As your Real Estate professionals, understanding the Real Estate market and keeping you informed is part of our ongoing dedication.  Whenever you, your friends, co-workers, or family require the services of a Real Estate professional please contact us.   We appreciate the opportunity and look forward to being of service.

Mark Wouters Realty Inc

Re/Max Saskatoon

Phone 306-933-0000  E-Mail:  wouters@woutersrealty.com

THANK YOU

We thank you for taking the time to read our newsletter.

Mark and Barb Wouters

Mark Wouters Realty Inc is under contract to RE/MAX Saskatoon. 

Each office is independently owned and operated.