I have a 1034 bungalow in Willowgrove with a smaller double detached for $299,900.

Doing the math on the cost per square foot on new construction: Unless builders want to build a 1,000 square foot bungalow and sell at a loss the sales price is going to be about $300,000 plus garage, driveway and landscaping.

I was assuming that the price per square foot you mentioned does include the lot, but is that the case?

I have to agree, Peter. We’re not there yet.

Today, as was largely expected, BOC leaves prime rate unchanged:

Bank will not ‘pull an Australia’
“The Bank of Canada left its benchmark interest rate at a record low 0.25 per cent Tuesday, stating that while the Canadian economy is recovering, the current strength of the Canadian dollar “is expected, over time, to more than fully offset the favourable developments since July.”

* It is apparently possible to apply locks to your title to prevent transfer and interest registration, amendment and assignment (not sure what the fees are or what this entails).
http://www.isc.ca/default.aspx?DN=622,564,80,16,1,Documents
http://www.isc.ca/default.aspx?DN=635,622,564,80,16,1,Documents

* If at all possible, ensure the title is in several names (you and your spouse, for instance), as this makes forging a transfer more difficult (since both parties have to consent).

* If you have a clear title, setting up a HELOC (even if you have no intention of using it) will allow you to register an amount up to (and occasionally more than) the assessed value of your home (even if the HELOC is for less than that), virtually eliminating the ability to fraudulently borrow against the title. The bank now holds an interest in the property, and any attempts of fraud with respect to the title are likely to raise a red flag at the bank first.

* If you don’t have a clear title (but do have equity in the home), a HELOC through another financial institution protects you in a similar fashion and registers two additional titles against the property – so now fraudsters need to run the gauntlet of two different banks (in addition to compromising your identities).

This is a great question, and one which I have very little expertise in personally. I suspect that identity fraud, is identity fraud whether it relates to a mortgage, credit card, or any other type of loan and that the same general considerations for protecting oneself apply.

My understanding is that our Land Titles System is “absolute,” so to speak, and only the title holder can agree to charges against their own title. In other words, you can’t be held responsible for a fraud perpetrated against you. That said, if a lender alleges that you took a mortgage on your own property and produces evidence in support of the claim, you will be put in a position of having to defend the title. You’ll have to prove that a crime has been committed.

Title insurance can be purchased to protect yourself from fraudulent acts of this nature. Here is an excellent publication from First Canadian Title Insurance which addresses title fraud specifically, and offers some advice of how you can protect against.

Jim, this topic will make for an interesting post at some future point (soon) when I’ve had the opportunity research more fully. Thanks for the comment.

Does the Saskatchewan law protect house owners from this fraud…or something like title insurance should be purchased from Saskatchewan?

Roughly 240-280 for a two storey. 280-330 for a bungalow (location and features making the difference).

One of the factors which limit price decreases is the cost of building new. What tends to be the range per square foot of building new at this point? Does anyone know?

One sale at $625, seven between 400-500 and ten between 300 and 400.

Ginger,

Well, thanks for chiming in and I appreciate the feedback on the rules. I had fun putting them together. Please don’t be a stranger.

Peter,

“Also, as far as interest rates going up, isn’t this giving anyone deja vu?”

True indeed. Good point.

If I’ve learned one thing over the past year it’s that anything can happen, regardless of what’s happening. I am busy planning for 2010 and my plan is looking forward to a strong year.

“with lay offs in both, I think the local economy has pretty conclusively peaked”

This is a pretty broad statement. I find that people lacking in evidence but strong in opinion tend to make such statements. Could you possibly back it up with some evidence. Here is what I found, the numbers do not “conclusively” indicate that the economy has peaked.

“According to Statistics Canada, the Saskatchewan unemployment rate for September 2009 was 4.0 percent. This is a decrease of 2.1 percentage points from the August 2009 rate of 6.1 percent but 0.4 percentage points higher than the September 2008 level of 3.6 percent. ”
http://www.stats.gov.sk.ca

Also, as far as interest rates going up, isn’t this giving anyone deja vu? Weren’t we having a conversation about rates going up in July? I remember the 5 year fixed rates went up to around 4.5% .. and then came back down again. In fact, rates have been going up and down between 4 to 6 % for at least 5 years. People need to be aware that there is a relation between the economy and interest rates. If rates going up chokes off growth, the resulting economic problems usually pull the rates back down again. So to say that rates are going to go up, housing prices will plummet and we are all screwed seems like wishful thinking to me. Long-term there will be inflationary impacts to what is happening, but I am not sure we are there yet.

I have been reading this blog since not long after we moved to Saskatoon from out of province in the summer of 2007. We had a horrible real estate experience (despite an excellent agent) and didn’t end up buying. But, I’ve kept coming back to this site because I find so many interesting things. So what has finally prompted me to write now? I just read for the first time your blog rules and they made me laugh – a lot.

I will now resume being the creepy lurker.

-Ginger

No, You’re Reading That Right: 79.9 percent rate targets credit-challenged
http://www.nbcsandiego.com/around-town/shopping/No-Youre-Reading-That-Right-64173667.html?ref=patrick.net

(The high median indicates that it was more that the overall sales pattern was shifted towards the top end and away from the low market this week, but I always like verification. Thanks!)

L.oki, “We are going to see small gains this year…despite what the bears predicted. It has been a good post boom year.” Sure, based on averages, that’s entirely possible. However, I saw more than a few houses that dropped in excess of $125-$175k from the peak in 2008 (by the time they eventually sold in 2009), so I wouldn’t say that all sellers would necessarily share your assessment of 2009, although there were definitely more opportunities for buyers – no question.

Norm, “I don’t think that the “multiple offers” scenario is that realistic given that we’re pushing towards the end of October already. I suppose that it’s possible that inventory continues to decline and sets us up for an unpredictable spring, but again, if rates are up then, that will have some kind of a cooling effect on demand.” I was more referring to the temporary housing bubble that was created last October with the elimination of 40-year/0%-down mortgages, rather than the specific timeframe. Also note that the ‘multiple offers’ comment was directed towards properties in a very narrow and specific price range. Regardless of when we may eventually see a rate spike, we sill see at least a temporary surge in demand as a result. Beyond that, as rates climb I agree wholeheartedly that this will definitely have a cooling effect on the market.

I don’t think that the “multiple offers” scenario is that realistic given that we’re pushing towards the end of October already. I suppose that it’s possible that inventory continues to decline and sets us up for an unpredictable spring, but again, if rates are up then, that will have some kind of a cooling effect on demand.

James,

“I agree with Nick.”

I would expect you would agree with Nick. Seeing that the two of you share a computer (or at least an IP address) your opinions are likely to be closely aligned, perhaps even the same. Please check out “the rules.”

Hi Alisha,

Thanks for the visit, and the comment.

The Canadian Banker’s Association releases a monthly report on mortgages in arrears (behind 3 or more months) and breaks them down as a percentage of all mortgages in each province of Canada. The most recent report was released in July shows that Saskatchewan was sitting at .23% in arrears which is very near our historical lows.

We have some software that will search names of property owners of the listings currently for sale. It can recognize a couple of hundred know mortgage lenders (Scotiabank, BMO, Concentra, etc.) Today, it’s not able to find a single foreclosure listed on the Saskatoon MLS. Not to say that this won’t grow but it’s certainly not an apparent problem today.

I suppose it depends how you define “big drop” and “small gain”, but I’m going predict that neither of those scenarios are plausible in the last months of 2009. Definitions, anyone?

You’re comments sound remarkably more positive on future sales trends This is understandable, I mean you would not have purchased if you were completely bearish on the future of the local housing market. Despite all the dire predictions over the course of the last year, all aspects of the local housing market have moderated and performed well. If a correction does occur it will likely happen in the same way as most corrections do, when everybody least expects it, and nobody see’s it coming.

I agree with Nick, in that I see further unaffordability decreasing in migration and maybe causing some of those laid off in Saskatoon to go back to Ontario or the Maritimes for cheaper housing, which in those markets, may still be affordable with higher interest rates.

I would think that now may be a good time for some rental owners or speculators to list their properties, or take a bit of a drop in asking price now, rather than to wait for the inevitable drop in price and qualifying buyers in the near future.

This would have the potential to further reduce inventories and, at the very least, keep prices stable in the interim. We could also once again see multiple offers and even prices increase on properties in the most affordable ranges. Further out, I agree that we could see some price collapses (and certainly on mid to high-end properties).

I would predict another big drop price wise soon, failing that, another big drop sales and population wise as rising interest rates will make Saskatoon even less affordable.