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

A closer look at the Saskatoon real estate statistics for August 2007

Note: The graphics in this post were updated on September 13, 2008 to reflect the final sale numbers as reported by agents for August, 2007. The graphics show the final figures while the commentary reflects the statistics as they had been reported as of the date of the original post.

The average selling price of a Saskatoon home took a substantial jump in August, recovering all which appeared to be lost in July, and then some. The average selling price of houses and condos combined climbed to $258,508 from $245,893 in July. Total unit sales dropped to 361 from 411 the previous month.

Average selling price of Saskatoon houses and condos in August, 2007

Prices of Saskatoon houses saw the larger increase when compared to condos with the average rising to $270,726 from $253,446 in July. The total number of houses sold dropped to 252 from 315 the previous month.

Average selling price of a Saskatoon house in August, 2007

The average selling price of a Saskatoon condo also increased from $221,495 last month, to a new high of 230,260. The number of units sold increased to 109 from 96 in July.

Average selling price of a Saskatoon condo for August, 2007

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

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

RBC’s most recent housing affordability survey was released yesterday and it should come as no surprise that Saskatoon and Saskatchewan once again received special attention showing some of the sharpest erosion of affordability when compared to other markets across Canada.


A quick look at the “mortgage carrying costs by city” charts appears to indicate that servicing a mortgage on a Saskatoon home requires a larger percentage of income than 15 of the 20 cities represented in the survey results. Ouch! Home owners in Victoria, Vancouver, Calgary, and Toronto pay a larger percentage of income. Though it’s tough to tell from these graphs, we may now be less affordable than Edmonton.


It’s also worth noting that these results represent changes to the end of the second quarter of 2007, and that Saskatoon continued to see some increases through the third quarter while other western markets experienced considerable cooling. I expect that we’ll see affordability deteriorate further in the next report, though likely not as significantly as we have over the last two.


Here are a few of the highlights from this report.


“Homeownership costs continued to climb steadily with Canada’s housing affordability sharply eroding across all four housing types in the second quarter, according to the latest Housing Affordability report released today by RBC Economics.”


The report goes on to say, “Saskatchewan, Alberta and British Columbia witnessed the most significant erosion in housing affordability. Affordability deteriorated by approximately 20 per cent across each of the home segments in Saskatchewan, marking the worst quarterly deterioration on record. Over the past couple of years, Saskatoon, Edmonton and Calgary have suffered the largest deteriorations of all Canadian cities.”


“Housing markets conditions from Manitoba eastward are not a cause for concern, but conditions in Saskatchewan, Alberta and British Columbia warrant caution given the speed of the massive turnaround in affordability in several key cities. The economic fundamentals are supportive, but have been priced in fairly aggressively. In our view, a continued cooling in the pace of price gains and an ongoing pull back in sales-to’ listings ratios lie in the cards in these cities.”


Read the RBC Housing Affordabilty report here

Read the overview specific to Saskatchewan

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 3-7 2007)

The Saskatoon real estate market took its biggest leap towards “balance” this week as new listings of houses, condos and duplexes outnumbered sales by nearly two to one. A total of 126 new listings came on the market while just 66 homes found new owners. This week’s numbers brought more changes than I can recall seeing since I wrote the first post which became the “Week in review” back on February 17, 2007.


Here are a few of the highlights.


  • The percentage of homes which sold above the list price fell to 35%, the lowest level since the week of February 19-23.
  • The average overbid dropped 36% from last week to $9,335 reaching its lowest point since the week of February 26-March 2.
  • The average underbid was actually larger than the average overbid in four of the five Saskatoon real estate areas.
  • For the first time since the week of February 19-23 the average selling price of a Saskatoon home was lower than the average list price.
  • Total active residential listings reached their highest level this year at 591 units.
  • 19 sellers called it quits by withdrawing from the market and another 10 listings expired without a sale.

If you compare this week’s numbers to any other week between 1993 and 2006 you couldn’t help but think that the Saskatoon real estate market is really on fire. When compared to almost any other week in 2007 it starts to feel a little soft around the edges.

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 (August 27-31)

Last week, I indicated that I thought we were going to see some bleak numbers for Saskatoon real estate sales in this week’s report. As it turns out, sales were pretty much on par with recent weeks. A total of 89 Saskatoon homes were reported sold to the local MLS® between Monday and Friday. There were 140 homes listed during the same period, yet active listing inventory made just marginal gains closing the week at 565 units, an indication that more properties are expiring without a sale, or being withdrawn from the market by prospective sellers. As more listings are failing to sell at “offer presentation” time, more sellers are re-listing their properties at prices which are closer to matching their expectations.


Here are a few of the week’s highlights

  • The percentage of homes selling above the asking price slipped back to 47%, a difference of about 12% from last week and on par with the declining number we saw the previous week.
  • The average overbid fell to its lowest level since the week of March 26-30 at $14,665.
  • 44% of reported sales sold below the asking price. This is the highest percentage we’ve seen since the week of March 26-30.
  • The difference between the average asking price and the average selling price reached its lowest level since the week of February 26 – March 2 at just $3,828 (above the average asking price).
  • The average selling price remained solid and at $256,844. Next to the week of August 13-17 this week’s average selling price is the highest this year.

Here are the numbers.


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