Housing starts are rocking the charts once again and you can’t go anywhere in this town without running into some massive non-residential construction project. They’re everywhere.

According to the City of Saskatoon’s most recent population estimate, roughly 223,200 people were calling Saskatoon home as of June 30, an increase of approximately 5,000 from a year ago. That “estimate” is pretty consistent with Statistics Canada’s most recent numbers for Saskatchewan that indicate our provincial population grew by more than 16,000 in the past year to reach its highest point ever.

One can only assume that our ability to continue expanding employment is a driving force in that growth.

New entrants need not fear a sudden adjustment on the lifestyle scale. We know how to have a good time. We know how to blow the dough. A new study (via JenCT), published in the Sask Trends Monitor for June says household spending between 2006 and 2008 grew at three times the national average in Saskatchewan. We found a way to increase spending by an average of 7.3 percent during each of those years as the value of our homes skyrocketed. Credit was cheap and easy to come by. It still is, really.

Now before you start wagging your finger and talking your neighbours down for their financial recklessness, you should know that another new study (via Larry) says that the household net worth of those living in Saskatoon saw a huge increase over the past year, that our household debt is well below the national average and that we’re looking pretty good when it comes to our investment portfolios.

On the surface, this appears to be one recession the people of Saskatchewan won’t soon forget.

Generally speaking, would you say your family is better off or worse off than it was five years ago? I would love to hear your thoughts.

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.

Norm Fisher
Royal LePage Saskatoon Real Estate

If the budget is ultimately passed, a 3.86 percent property tax hike will be required to fund the initiatives which include a $1 million dollar increase for snow removal, a $1.5 million increase for policing and $750,000 in added transit services to new neighbourhoods.

The preliminary budget will be tabled with the Budget Committee for deliberation on Wednesday, April 14, starting at 1:00 p.m. in Council Chambers.

View the City of Saskatoon Preliminary Operating Budget here.
Read the Star Phoenix coverage here.

Update: April 15 – Council decides not to trim budget-for now; 3.96% tax hike proposed

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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

“If we see further evidence that there’s excessive demand in the housing market, or that there’s an indication that people are taking on obligations that they will not be able to handle in the future when interest rates do rise, then we’ll take some action,” Flaherty told the CTV.

Historically low interest rates intended to spur economic activity have pushed demand for homes higher resulting in sharp price increases in many Canadian markets. Near record level activity in our largest and priciest markets, Vancouver and Toronto has helped push the average selling price of a Canadian home to $368,665 (according to the Canadian Real Estate Association) , roughly twenty-percent higher than it was at this time last year.

“The likely action we would take is to increase the size of the down payment from five percent to a higher amount and probably, once again, reduce the amortization period. So, bring it down from a maximum of thirty-five years to something less than that,” Flaherty said.

I’m going to guess that December’s sale numbers will continue to fuel concern and bring us closer to seeing at least one of these changes implemented. Also uncertain is whether these changes would take effect immediately or if they would be effective at some future date.

Thanks to @JenCT for the heads up.

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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

While in the thick of a recession, the strongest countervailing force that set the stage for the mother of all rebounds, apart from lower prices, was lower interest rates.

All said, the housing market has gone beyond retracing its steps and fully recovering from the end of 2007 – which had marked the peak of a half-decade long boom, concentrated in Western Canada…As of October, both sales and the average price stood 5% higher than their respective 2007 peak…But now that home values are already past their previous peak in such short order, we estimate that the typical home remains overvalued by 12% at the national level. Unfortunately, sheer momentum suggests that this overvaluation is likely to increase over the course of the next few quarters, peaking at 13-15% in H1/2010.

The misalignment of home prices with their fundamental drivers, such as demographics and income, cannot last. That much is known…Because a necessary realignment has been erased so quickly without support from income growth, another adjustment must take place – although it could take many forms. As of our writing this note, early signs of market cooling are emerging and our analysis still suggests the most likely outcome is a soft landing and relative stagnation of home values in real-terms along with a resumption of stronger income growth over the 2011-13 time frame.

As the central bank begins to hint at a tightening monetary policy cycle in the second half of next year, sales could well see a last gasp of strength. Moreover, by that time, the availability of units on the supply side should provide a relief valve helping to cool price growth. And, by 2011, while the overall economy will have improved significantly, housing markets will be losing momentum.

While current price levels are above what we estimate to be long run fundamental values, they do not appear so dramatically out of line as to warrant a sharp correction in the near-term…As for price momentum, it is more clearly unsustainable…Recall that every price increase that is not matched by a commensurate income gain increases the overvaluation gap. Second, more supply should come online in the first half of 2010 in the form of new home and condo completions.

The current market tightness, as measured by the sales-to-listings ratio (limited inventory), while expected to ease gradually over the course of 2010, will not turn on a dime. As a consequence, it will be supportive of price growth in 2010 that is stronger than fundamentals can support over the long haul. After climbing by an estimated 4-5% on an annual basis this year, the average existing home price is expected to gain another 9-10% in 2010 as sales climb to 475K.

In closing, we note that the most important downside risk to our near-term forecast is not that the market cools more than we anticipate. While this risk certainly exists, it would not cause significant market disruptions, and it would ensure that affordability does not continue to erode at the current pace. The risk is rather that the market remains as hot as it currently is for too long, eventually running head-on into monetary policy tightening (and longer term bond yields rising). There is more than adequate time for the housing market to cool before then, but history suggests that if it fails to do so, the ensuing adjustment would be a rude awakening.

Thanks to Larry Yatkowsky of Vancouver’s Yatter Matters for the heads up on this report. See Larry’s overview, “Green Chair Talks.”

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.

Real estate geeks can follow our daily updates on Twitter @norm_fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

Release: Immediate
Date: Friday October 30, 2009
Contact: Mike Lobsinger, Chief Executive Officer Lake Placid Group of Companies

(Saskatoon, SK, Canada): Michael E. Lobsinger, Chief Executive Officer of the Lake Placid Group of Companies, announced today that Lake Placid is in a situation where delays have arisen around the deadline with the City of Saskatoon. For this, Lake Placid sincerely apologizes.

International finance is a complex and time consuming process. Lake Placid continues to work with its international financier to provide the $200 Million credit facility that is required for the development of Saskatoon River Landing.

All development and legislative approvals were not obtained until May 2009. Pursuant to the lender’s written financial commitment, the financing is still expected to arrive but will not do so in time to meet the October 30 deadline. The City of Saskatoon will be advised that although Lake Placid is not in a position to meet today’s deadline, it may be in that position very shortly.

It is particularly unfortunate that circumstances beyond the control of Lake Placid have resulted in missing this important deadline. Lake Placid has spent two years and over $7 Million planning this premier development which includes payment to the City of Saskatoon of over $700,000. Lake Placid has received significant interest from the local community for the purchase of residential properties, and from commercial tenants and hoteliers. They will be contacted directly.

Lake Placid would like to thank all of the supporters of this project including the City of Saskatoon administration, City Council and the Mayor’s office for their significant support in the progress made to date. In addition, Lake Placid would like to thank the Premier of Saskatchewan and the appropriate Ministers who worked diligently to pass the necessary amendments to the Condominium Properties Act and the Land Titles Act which allow for the development of mixed use projects in Saskatchewan. Without those legislative amendments which were passed in May 2009, this project could not have proceeded.

Lake Placid believes in the future of the great city of Saskatoon and has every intention of developing there in the near future. The company thanks everyone for their patience and understanding in this matter.

A British Columbia businessman, Rexy Silva and his daughter, Tabitha will operate the Uptown Market and offer a full selection of fresh produce, meats, eggs, dairy products and other essentials. They hope to have the 5,200 square foot grocery store open by Christmas of this year.

Saskatoon’s Central Business District has been without a grocery store since late 2004 when the Extra Foods on 3rd Avenue North closed its doors.

Learn more about the Central Business District.

If you live in Saskatoon we’d sure appreciate hearing your comments about your neighbourhood. Please visit our “Saskatoon neighbourhoods” page and let us know what you love about your community.

Norm Fisher
Royal LePage Saskatoon Real Estate

“In order to ensure we continue our economic growth and to build a more diverse, dynamic and cosmopolitan community, both in Saskatoon and right across the province, we need to make sure that more people have more education and more skills training and that way they can help to sustain the growth. The Saskatoon Trades and Skills Centre Inc. will help meet the demand for skilled tradespeople in the province and expand Saskatchewan’s economic opportunities,”  said Rob Norris, minister of advanced education, employment and labour.

Star Phoenix story here.Learn more about the Mount Royal area of Saskatoon.
Visit the Saskatoon Trades and Skills Centre website.

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 @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

The Home Renovation Tax Credit is a federal non-refundable tax credit based on eligible expenses for improvements to your house, condominium, or cottage. The 15% tax credit applies to eligible expenses that exceed $1,000, but not more than $10,000. For instance, if you installed new windows at a cost of $5,000 and new shingles at a cost of $5,000 your tax credit is calculated as follows. ($10,000 – $1,000) x 15% = $1,350 tax credit.

You must get your contracts in writing, keep your receipts and claim the credit on your 2009 tax return.

Eligible expenses must be of an enduring nature and integral to your property.

Examples of eligible expenses

Renovation of a bathroom, basement, or kitchen
New windows, doors, or flooring
Building an addition, garage, deck, shed or fence
A new furnace, fireplace, water softener, or water heater
A new driveway, or a new surface on an existing driveway
Re-shingling a roof, or painting a house
Landscaping projects like new sod, perennial shrubs and flowers, trees, etc.
Swimming pools (permanent – in-ground and above ground)
Fixtures – blinds, shades, shutters, awnings, lights, fans, etc.
Associated renovation costs such as permits, professional services, equipment rentals, etc.

Examples of non-eligible expenses

Improvements made to rental units even if located with your primary residence
Furniture, appliances, tools
Audio and visual electronics
Routine repairs, maintenance and cleaning costs
Financing costs

For more information on the Home Renovation Tax Credit click 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.

Real estate geeks can follow our daily updates on Twitter @Norm_Fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Saskatoon Real Estate

In a letter to the city, the developer requested an extension to June 30, 2010. City manager, Murray Totland will recommend to city council on Monday that the extension be granted.

Read the Star Phoenix story 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 @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

Dear Norm,

“The legislation needed to move forward with two of the biggest private developments in the province, both slated for downtown Saskatoon, was passed this week.”

Star Phoenix, May 02 2009

We have very exciting news! We are now offering the Residences at River Landing Village for sale! For those of you that have reserved a unit, this is your opportunity to make that unit yours with a 10% deposit. If you have not reserved a unit we encourage you to visit our sales centre, as we have many great suites still available. Please call Richard or Gail at (306) 683-4350 to make an appointment.

As you may know, we have experienced delays due to the current land titles act. As you can see in the quote above from the Star Phoenix, we have overcome these issues.  In simple terms, the Government is going to allow multiple strata’s (owners and users) on a single title (parcel of land). We are very excited about this progress, and we will begin construction as soon as these changes are complete.

We hope to hear from you soon and encourage you to visit us, as suites are selling quickly!

Sincerely.

Lake Placid River Landing

The River Landing Village website is 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 @Norm_Fisher.

Norm Fisher
Royal LePage Saskatoon Real Estate

On a year-to-date basis (January and February), housing starts are down 50% across Canada. Saskatchewan leads the provinces showing the largest decline, off 74% with just 152 starts this year compared to 578 for the same period in 2008.

Saskatoon’s year-to-date housing starts sit at 57 units, a decline of 85% over the same period last year. Kelowna was the only Canadian city to post a larger drop with starts falling 96%, year-over-year, from 735 last year to just 28 this year.

Paul Caton, CMHC senior market analyst told the Saskatoon Star Phoenix that new home construction is off to a slow start this year as developers work to finish and sell the houses they began building in 2008.

CMHC’s Preliminary Housing Start Data is here.
The Star Phoenix story is 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.

Norm Fisher
Royal LePage Saskatoon Real Estate

Check the CNN story here.
Cassandra Kyle’s coverage is 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.

Norm Fisher
Royal LePage Saskatoon Real Estate

“Saskatoon resales will decline almost 20 per cent by the end of 2008 with a further 11 per cent reduction occurring in 2009. Notwithstanding 2008’s forecast decline, resales will still be in excess of the ten-year average of 3,170 sales.”

“Our forecast calls for the average price to reach $287,000 in 2008 and approach the $300,000 mark in 2009 as price gains cool from the 2007 pace. Higher listings and buyer resistance to higher prices will result in relatively weaker price gains compared to 2007 for the balance of 2008 and 2009.”

Hmmm.

Read CMHC’s Fall Housing Outlook for Saskatoon 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

The sales jump, which took economists by surprise pushed active listing inventories down by 1.6% and brought the second consecutive month of inventory declines. Still, a near 10-month supply of residential property is available for purchase across the United States.

Home prices continued to post losses and reached their lowest level since April 2004. The median price of a U.S. home fell to $191,600, down nine percent from one year ago.

According to a story in the Globe and Mail, Lawrence Yun, chief economist for the National Association of Realtors (NAR) attributes increased unit sales to a “rise in foreclosure and other ‘distress sales’ in regions of the country hard-hit by the ongoing housing downturn.”

“In some regions, the lower prices are seeing buyers return to the marketplace,” he said. “This was a nice jump, and hopefully this trend can continue because the first step to stabilizing the market is an increase in home sales.”

Read the Globe and Mail story here.
Read NAR’s media release here.
See the current U.S. real estate stats 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

Flahrety insists that not a single Canadian bank is at risk of failing but that liquidity is the primary issue threatening the unimpeded flow of credit for Canadians.

“It is important to underline that Canada’s banks and other financial institutions are sound, well capitalized and less leveraged than their international peers,” he said.

Read the Globe and Mail story 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

The local economies in Saskatoon and Regina both continue to prosper as a result of the booming agricultural and resource sectors, and an abundance of employment opportunities continue to attract new workers to the province.  However, the rising house prices appear to have reached a cap; after lagging behind much of the country, house prices in Saskatchewan have caught up and are now on par with other comparable cities.

In Saskatoon, the recent run-up of house prices has finally come to a tipping point, where buyers have become reticent to enter the market.  During the third quarter, Saskatoon’s housing market returned back to earth, with rates of house price appreciation that are more sustainable in the long term.

In Saskatoon, the average price of standard condominiums rose by 1.8 per cent to $211,250, year-over-year. Standard two-storey homes climbed by 10.7 per cent to $358,250, while the price of detached bungalows appreciated by 9.4 per cent to $321,500, year-over-year.

“House prices in Saskatoon are still up year-over-year, but the frenzy has definitely worn off compared to what the city experienced in previous quarters,” explained Norm Fisher, sales manager, Royal LePage Saskatoon Real Estate, Saskatoon “The combination of cautious buyers, and the recent activity of many speculative sellers has led to a surplus of inventory and a decline in prices during the third quarter.  The housing market is now tipping towards the buyers’ favour – for the first time in several months.”

The condominium market is mostly affected by the surge in inventory as this property type received the most attention from speculative and out-of-town buyers who were hoping to cash in on the city’s booming market.  Many would-be buyers are now taking a wait-and-see approach before jumping into the market.

Average listing periods have more than tripled over the past year; since the third quarter 2007, current figures for days on market has increased to approximately 55, up from 13.

Added Fisher: “Buyers and sellers both need to understand the current market conditions before taking any action; sellers need to be aware that the market has changed significantly and must list their homes accordingly.”

In Saskatoon North, the average price of a standard two-storey home rose by 6.1 per cent to $350,000, year-over-year.  Detached bungalows rose by 7.5 per cent to $322,500, while the price of a standard condominium dipped by 2.1 per cent to $210,500, year-over-year.

In Saskatoon West, the average price of a standard two-storey home soared by 22.9 per cent to $338,000, while the average value of a detached bungalow also increased, rising by 14.0 per cent to $285,000, year-over-year.

In the East End, the average price of a detached bungalow rose by 12.2 per cent to $364,000, year-over-year.  The average price for standard two-storey homes increased by 12.9 per cent to $412,000, from the same period last year.

In East Central, the price of a standard two-storey home rose by 10.8 per cent to $360,000, while a detached bungalow rose by 10.7 per cent to $332,000 year-over-year.  Standard condominiums also appreciated, rising by 6.0 per cent to $212,000, year-over-year.

Market activity in Regina paralleled that of Saskatoon, as buyer demand was doused with a surplus of listing inventory.  The increase in available listings has tempered activity and sales prices from the frenetic pace that characterized the market in recent months; however, when surveying prices compared to last year, Regina’s housing market demonstrates substantial gains.

Of the three property types surveyed, standard condominiums showed the greatest year-over-year appreciation, rising by 49 per cent to 196,000, standard two-storey house prices also showed strong gains, jumping 39.6 per cent to $259,000.  Detached bungalow properties rose, increasing by 34.1 per cent to $278,850, year-over-year.

The dynamics of the city’s real estate market has put the breaks on some would-be buyers’ activities, as many are taking time now to see how the market plays out.

“Many buyers are sitting on the sidelines right now, waiting for prices to drop; however, this is likely not going to happen,” said Mike Duggleby, manager, Royal LePage Regina Realty, Regina.  “Our economy is the best it’s ever been, and I anticipate that it’s only going to get better.  The city’s anticipated inter-modal facility will no doubt boost our economy even further, and draw more people to Regina.”

Added Duggleby:  “Six months from now, Regina’s potash, oil and uranium industries will still be flourishing, and we’ll be heading into the busy spring market.  Now is a very good time to invest in Regina’s real estate.”

In Regina North, standard condominiums experienced the largest appreciation, with average prices rising by 50.0 per cent to $180,000, year-over-year.  The average price of a standard two-storey property, followed second, rising by 34.9 per cent to $228,000, while detached bungalows rose by 31.4 per cent to $262,700, year-over-year.

In Regina South, standard condominiums showed the largest gains, rising by 48.3 per cent to $212,000, year-over-year.  The average price of a standard two-storey home increased by 43.6 per cent to $290,000, while the average price of a detached bungalow in the area increased by 36.6 per cent to $295,000, compared to the same period last year.

Click here to view Royal LePage House Price Survey chart for Canadian survey markets.

Click here to view the national release for the Royal LePage House Price Survey.

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

Audio clip from John Gormley Live – 09/16/08

Think about it. I am. ☺

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

According to a story in today’s Globe and Mail, Mr. Wolf is most concerned about Saskatchewan, where the doubling of house prices in Regina and Saskatoon over the past two years “has led us to estimate that these markets are now close to 50 per cent overvalued.”

David Wolf is not the first economist to make the claim that Saskatoon is overvalued. Scotiabank economist Adrienne Warren said it first in September of 2007. RBC’s Amy Goldbloom said it again in October. Both of these stories were covered on this blog and in the Star Phoenix. Seems nobody was really listening then.

The Saskatoon Region Association of Realtors responded with this.

Read the Star Phoenix story here.

Peaked: Canada’s housing market in depth

I have argued that prices in the Saskatoon real estate market have been out of whack with fundamentals so I won’t go out of my way to take issue with Merrill Lynch. I would suggest that it’s appropriate to keep in mind that this report is written by an investment-banking firm who makes the bulk of its money selling investments, and they don’t sell real estate.

This post is dedicated to Doug who would like you to know that unemployment is up, crime is obscenely high, incomes have not risen in Saskatchewan as much as they have in Alberta, Saskatoon’s population may be down by 2000 people, Westfair Foods is moving to Regina, SaskHouses now has 420 properties advertised, MLS listings are well above 1500 and growing weekly, MLS sales suck compared to last year, the average price of a Saskatoon home is falling, the price of oil is dropping, GDP was lower then expected last year, and “breaking your hip” is a real threat when living in Saskatoon.

Now that we’ve got that out of the way, let’s talk Saskatoon real estate.

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

According to the Star Phoenix, “The firm uses census figures as a starting point, adjusted by databases of consumer spending, home sales, and address information to arrive at its estimates.

Information from various sources suggests Saskatoon’s population grew from 202,340 in 2006 to 214,034 by the beginning of 2007, and receded to 212,000 by mid-2008.

Anyone else have any thoughts on how these measures could lead to the conclusion of a population drop, given that 2007 produced a record number of homes sales, and Saskatoon has been the nation’s leader for consumer spending?

Read the Star Phoenix story here.

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

Good idea Ben! It would be foolhardy to encourage a second mortgage crisis while you’re busy dealing with the first one.

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

At the top of the do not approve list is the 40-year mortgage. Effective October 15 of this year, CMHC, Canada’s housing agency won’t be insuring mortgages with amortization periods of more than 35 years.

Zero-down mortgages also meet their end when the new policies take effect. All CMHC insured mortgages will require a minimum down payment of 5%.

Other changes include the establishment of “consistent minimum credit score requirements” and the introduction on “new loan documentation standards.”

“Today’s announcement marks a responsible and measured approach by the Government to ensure Canada’s housing market remains strong and to reduce the risk of a U.S.-Style housing bubble developing in Canada.”

Prior to November of 2006 when CMHC relaxed its standards, the maximum amortization period allowed on a government insured mortgage was 25 years and a minimum down payment equal to 5% of the purchase price of the home was required. Introduced as “financial innovations,” zero-down mortgages and 40-year mortgages added fuel to a housing market that was already out of control in a number of Canadian cities.

Record house price increases followed in a number of Canadian cities including Saskatoon and Regina.

How do you see these changes affecting the Saskatoon real estate market?

Read the announcement here.

Read the Globe and Mail coverage 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

Speaking to a group of RBC clients in Saskatoon on Friday, Ferley noted that a “wide range of commodities” are experiencing higher prices. He’s predicting that uranium, potash, wheat and oil production will push Saskatchewan’s economy forward by 3.5 percent in 2008, and 3.25 percent in 2009, compared to national growth rates of 1.5 percent and 2.5% respectively.

The Saskatchewan economy was the subject of much speculation in 2007, but ultimately underperformed on the most bullish predictions, which had forecast real GDP growth between 4 and 4.8 percent. Saskatchewan’s real GDP growth came in at 2.8 percent, just slightly above the national average. However, Saskatchewan’s nominal GDP growth through 2007 was exceptionally strong at 11.4 percent, topping all provinces except Newfoundland and Labrador. Real GDP measures changes in production, while nominal GDP measures the actual dollar value of the economy. You might say that we worked 2.8% harder, but earned 11.4% more.

Read the Saskatoon Star Phoenix story by Wendy Gillis here.

Read also: Saskatchewan Economy Underperforms on Expectations

Read also: The Rest of the Economic Growth Story

Read also: Saskatchewan Could Become an Embarrassment of Riches: RBC

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

While existing home sales across Canada will experience an 8.5% decline, resale activity in Saskatchewan is expected to “facilitate a record number of transactions in 2008, reaching 13,400 units,” according to the report. Nationally, housing starts will decrease by 6% while Saskatchewan experiences an increase of 17% to 4,600 units, “the highest total in nearly 30 years.”

CMHC believes positive migration trends, expanded production of potash and oil, higher commodity prices and surging government expenditures will continue to drive Saskatchewan’s economy forward in the years ahead.

“The province’s changing economic fortunes are clearly reflected in the 2007 migration figures. After 22 consecutive years of decline, net migration in Saskatchewan rebounded with a record high of 13,583 migrants. Last year’s performance erased all of the losses in the preceding three years.”

Does Saskatchewan have the goods to buck this national trend?

Read CMHC’s Housing Market Outlook 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

New home construction is also experiencing change as residential building permits saw “sharp declines” and inventories of unsold new homes are trending higher.

Warren goes on to say, “Canada’s recent record of price appreciation, averaging an annualized 10% from 2002 to 2007, was unsustainable, and a return to more historical norms is a welcome development.” In explaining her confidence that the market is unlikely to see major declines like it did following the last two Canadian housing booms, Warren makes the following points.

• Home prices in Canada are not substantially overvalued
• There is little evidence of widespread speculative home buying that often accompanies the later stages of a housing boom
• Canada’s real estate market is not overbuilt
• Canadian households are not overleveraged
• Overall mortgage quality is still sound.

“From a regional perspective, the cooling in overall activity is most notable in many of Canada’s hottest urban housing markets in recent years, including Calgary and Edmonton. Both centres have officially moved into buyers’ territory as soaring prices weaken demand and fuel new listings. More generally, however, economic conditions continue to favour the resource-rich markets in the West over manufacturing-dominated centres in Central Canada hampered by a strong Canadian dollar and softening U.S. import demand. Regina and Saskatoon are currently in the strongest sellers’ position nationally, supported by good affordability, rising population inflows and tight supply.”

Read the Scotiabank Real Estate Trends 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

The rest of the story followed this week as StatsCan released a report on “nominal gross domestic product,” which stated that Saskatchewan has “stepped into a new era of prosperity.”

It’s my understanding that real gross domestic product is a measurement of productivity in an economy, while nominal gross domestic product is a measurement of dollar volume generated by an economy. Apparently, it’s the latter that gives Saskatchewan much higher marks.

From the StatsCan Report

• Newfoundland and Labrador’s economy led the nation in terms of growth in nominal gross domestic product (GDP) in 2007, at 13.4%. Saskatchewan followed with growth of 11.4%, ahead of Alberta’s 8.3%.

• Newfoundland and Labrador’s growth in nominal GDP of 76% between 2002 and 2007 also topped Alberta’s gain of 73%. Saskatchewan posted the third highest gain over the period, its GDP advancing 49%.

• Higher crude oil prices have been driving the boom in Newfoundland and Labrador and Saskatchewan. They are the top producers of crude petroleum in Canada after Alberta, accounting for almost one-third of Canada’s production.
  

• In 2007, Saskatchewan exported $21 billion to other countries, a 13% increase over 2006. This placed Saskatchewan behind only Newfoundland and Labrador for the title of fastest growing provincial exports. In addition to crude oil, agricultural products, potash, and uranium have made major gains since 2005.

• Perhaps most significantly, both Newfoundland and Labrador and Saskatchewan have reversed their long-term trend of a declining population…Saskatchewan’s population grew 0.8% in 2007, its first increase in over a decade, which put the population once again to 1 million. Moreover, the population of the 15 and over age group in Saskatchewan in April 2008 was 2.0% larger than it was in April 2007.

• As incomes have risen and population growth has resumed, Newfoundland and Labrador and Saskatchewan consumers have gone on a buying binge, leading provincial growth in retail, housing and auto sales.

Read the StatsCan report on nominal gross domestic product here.

Read the StatsCan report on real gross domestic product 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