The Canadian Real Estate Association (CREA) just released it’s findings on MLS® sales across Canada for the month of October and Saskatoon stands out as one of the “major markets” showing exceptional performance.
“Resale housing in Canada’s major markets remains on solid ground. With just two months to go in 2006, MLS® home sales for the year-to-date in October 2006 were higher than the same period for any other year on record.”
Some of Canada’s largest centres like Montreal, Calgary, Ottawa, and Vancouver saw some of “the steam” come out of their market as listing inventories “began to trend higher … giving buyers more negotiating power and time to make purchase decisions. That trend is forecast to continue and result in smaller price increases in 2007.”
The report notes that “Monthly sales reached their highest monthly level ever (for the month of October) in Edmonton and Saskatoon. Higher activity in Edmonton, Saskatoon, Toronto, Hamilton and Quebec City offset fewer sales in Vancouver, Calgary, Ottawa and Montreal.”
I expect that we will continue to see some softening in the country’s largest markets as affordability and cost of living begin to impact the numbers of people who can afford to participate in residential real estate markets. The kinds of increases that some of these markets have experienced is unsustainable. For instance, Calgary reported price increases of up to 50% in some areas over the last two quarters of 2005 and the first two quarters of 2006. The Globe and Mail ran a story yesterday with the headline “Housing Boom Fizzles in Calgary.”
Saskatoon is in an excellent position to attract those seeking a more affordable housing market and an overall lower cost of living. Businesses everywhere seem to be screaming for people and growth is predicted in several market sectors.
My colleagues and I have been talking about this trend for several months as we’ve all suddenly seen an increase in the numbers of out of province buyers seeking homes in Saskatoon. While it will take some time before we have statistical information to back this idea up, I’m confident that the numbers will deliver. Half of the transactions which I was involved in this year involve people who are relocating to Saskatoon. I was just reviewing the list of guests who are registered to my online client service centre. As of this morning, there are 255 guests and clients registered there. 91 of them have provided telephone numbers which ring somewhere outside of Saskatoon, as far away as the UK. As I write this post, I can hear a gentleman who just walked in the door telling our receptionist that he’s returning home from Kelowna.
Is Saskatoon in for a real estate boom?
Royal LePage Vidorra