Is Saskatoon real estate overvalued? Another economist says, “yes.”

In a recently released report from RBC Economics, economist Amy Goldbloom makes a pretty compelling case that real estate is “overvalued” in western Canada and “out of whack with the underlying fundamentals.”


Goldbloom takes “a look beyond the standard affordability measure” and delves into “price to rent ratios,” something which I just happened to touch on, though not nearly as eloquently, in the comment thread of the most recent Week in review. 🙂


This report is brilliantly written and equally thoughtful, but one comment left me scratching my head. See if you can identify it.

Goldbloom has this to say about Saskatoon. “Housing markets across the major cities in the Prairies have long been the most affordable in the country. But, the recent pick-up in Saskatoon’s market has quickly changed conditions. Regina and Winnipeg have seen their price-to-rent ratios move up during the last few years after stable valuations through the 1990’s but are still at modest levels. The bigger story is Saskatoon where the recent pick-up has caused price-to-rent ratios to soar. In contrast to Calgary, Edmonton and Vancouver, the pick-up in Saskatoon has been very concentrated in the last year. The sudden and steep acceleration in price-to-rent ratios coincides with the sharpest deterioration in affordability on record. More expensive conditions already appear to be pricing people out of the market. Fifty percent price gains are starting to weigh on demand and softer demand should feed through to cooler price gains ahead.”


Read the RBC Canadian City Trends report here.

Read also: Saskatoon and Edmonton homes most overvalued: Bank of Nova Scotia economist

Read also: Worst quarterly deterioration of housing affordability on record for Saskatchewan: RBC

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate: Week in review (September 24-28 2007)

Whether or not you wish to call it a downtrend, there should be little question that the Saskatoon real estate market has cooled considerably when compared to recent months. It’s beginning to feel “normal” again with listings lingering a little bit longer and prospective buyers are once again feeling like they have some options which didn’t exist just a couple of months ago. The inventory of active residential listings reached 631 units, the highest point this year.


Overbidding activity continued to cool with only 20% of Saskatoon homes selling for more than the asking price, down from 30% the week before. A full 71% of reported sales traded below the asking price. The average overbid declined again, to its lowest level since I started the week in review.


This past week’s average selling price was up several thousand dollars from the previous week but was still well below numbers recorded just a few weeks ago.


Here’s a look at the numbers from this past week.


See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate: Week in review (September 17-21 2007)

In spite of a reduction in new residential listings and marginally higher home sales the Saskatoon real estate market continued it slow but steady trend towards “balance.” A total of 110 Saskatoon homes were placed on the market, while 83 detached homes and condominiums were reported as having sold. The total number of active residential listings stood at 617 at the week’s end.


It was one of those weeks that just felt slow. Agents were talking about a lack of showings, particularly on homes priced much above the “average.” Only 30 listings were published as “conditionally sold” which could mean some fairly bleak “firm sale” numbers over the coming week.


Here’s a quick look at the numbers.


Here are a few of the highlights from this week’s stats as I see them.


  • This week saw the lowest number of new residential listings (110) since the week of April 23-27.
  • The percentage of Saskatoon homes selling for more than the asking price dropped to its lowest level (30%) since the week of February 19-23.
  • This week brought the largest percentage of sales recorded below the asking price (59%) since I started the “Week in review.”
  • The average list price and average sale price of a Saskatoon home was driven lower due to a decrease in area 1 activity and an increase in area 4 home sales.
  • Area 5 sales stood out against activity in all other areas with 6 of 9 homes selling above list price and an “average overbid” of more than $12,000.

See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate: Week in review (September 10-14 2007)

The Saskatoon real estate market continued to plug along showing little real change over the previous week. New listings of Saskatoon homes outpaced sales by a fairly large margin and the week closed with 610 active residential listings on the Saskatoon MLS®.


Here are a few of the highlights.


  • The percentage of homes selling above the asking price remained fairly stable at about 40%. Remarkably, area 4 showed the highest percentage of the major real estate areas.
  • The “average overbid” also stayed steady and below the $10,000 mark.
  • The average selling price was below the average list price in all areas except area 5.
  • Average list prices and average sale prices reached a new high, largely driven by four luxury home sales with sale prices exceeding 600K. It’s quite amazing when you consider that only three properties sold for more than $600,000 through all of 2006. So far in 2007 there have been 29 sales and there are 20 active listings in that range.
  • The average underbid was skewed down, particularly in area 2 where one luxury property sold $110,000 below asking price.

The numbers for your review.

Saskatoon real estate: Week in review (September 10-14)

See a Google map displaying the boundaries of Saskatoon real estate “areas” here
Data collection and calculation for our statistical reports

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon and Edmonton homes most overvalued: Bank of Nova Scotia economist

If learning that Saskatoon will be the economic growth leader in Canada this year wasn’t enough for you, check out this report written by Bank of Nova Scotia economist Adrienne Warren which sees Edmonton and Saskatoon homes as the most “overvalued” in Canada.


Warren’s report indicates that Canadian house prices have “deviated from historical averages” by 8% this year while Saskatoon has deviated by 21% and Edmonton prices have increased 25% ahead of historical norms.


Read the Globe’s report here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher
Royal LePage Saskatoon Real Estate