Saskatoon MLS sales statistics make some waves nationally

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?

Norm Fisher
Royal LePage Vidorra

Deceptive agent practice could cost Saskatoon home sellers money

There’s a disturbing practice occurring all too often, which is padding the pockets of some unethical agents at the cost of their sellers. If you’re considering selling a home you should know about it and make certain it doesn’t happen to you.

We are currently in a market of low supply and high demand. It doesn’t take an economist to understand that good homes that are well exposed to the market have the potential to draw multiple offers at or above the listed price. If agents and buyers are aware that your home is for sale there’s a pretty good chance that they’ll be lining up to view your property. Of course, that’s good for you! The problem, in my opinion, is that some agents may be making an effort to ensure that buyers working with other agents are unaware that a property has been offered for sale, hoping to get the jump and sell the home themselves. On the surface, they may come off looking like a real go-getter. In fact, such practices are only good for the agent and potentially they could cost you thousands of dollars.

In a recent post titled, “Can’t Find a House? It’s Time to Get Ugly,” I shared a story of an agent who listed a fine little property for $239,900 which sold very quickly for $260,010. I’m sure that this agent probably had a buyer which would have been happy to purchase this home quietly before it actually hit the market. Had she behaved in a sneaky and deceptive manner, she would have brought her own buyer before anyone else knew it was for sale and written an offer herself. In a case like that, the dynamics of the negotiation would have been far different than they actually were. In all likelihood, the buyer would have offered somewhere below the list price and the seller may have been prepared to accept that. It’s very doubtful that the seller would have held out for more than the listed price. However, this agent understood her duty to act in the best interest of her seller and placed the property on the open market as she had promised to do and as a result, the buyer who was prepared to pay the most for the home was made aware of its existence and bought it. Both buyer and seller are pleased with the deal that they struck.

All too often, new listings are appearing on the MLS® with a note which says, “Sorry, this one is conditionally SOLD!” Well, I say, “How proud you are for selling your client’s home before 99% of the market even knew it was for sale.” Not something I’d want to brag about.

There have been many instances lately where homes are sold before the close of business on the day that they’re listed. While I wouldn’t go so far as to call this unethical, I’m not sure that it’s sound strategy for the seller’s interests. The home is sold and most of the market is still stuck at work. It seems to me that we should at least allow some evening showings before we jump on an offer. Wouldn’t you think?

It’s time that agents came up with some kind of a pre-listing marketing strategy to expose upcoming listings to buyers so that more of them have an opportunity to see and consider the home. I plan to do that over the next couple of days and I will share the details with you when I do. Meantime, if you’re placing your home on the market, ask your agent to submit the listing to the Multiple Listing Service® immediately to ensure that as many buyers as possible know it’s for sale. Try not to be so eager to sell that you accept an offer before most buyers can even see it. Yes, you need to deal with offers in a timely manner, but late tonight is as timely as early today and if you give them a chance to see it, the best buyer for your home will step forward and put their money where their mouth is.

Norm Fisher
Royal LePage Vidorra

Saskatoon real estate market continues at record pace

The Saskatoon Real Estate market continued to move at a “faster than normal rate” with buyer demand outweighing supply of good quality residential listings. The month of October saw resale activity reach 303 units, an increase of 26% as compared to October of 2005. Dollar volume soared close to 50% as compared to the same period in 2005 to close the month at $64,875,357.00. Average selling prices continued to rise. Saskatoon homes brought an average price of $166,766 in October, which represents an increase of 19% over October sales in 2005. A larger than normal number of sales in the luxury category skewed those numbers to some extent. Overall, average selling prices are up 11% taking sales activity in all categories and throughout the year into account.

The current state of active listings, combined with steady demand leads me to believe that we will continue to see upward pressure on home prices into the early winter months.

Norm Fisher
Royal LePage Vidorra