New listing activity in the Saskatoon real estate market increased for the first measure in six weeks as 82 residential properties made their way to the multiple listing service up six from. A total 78 single-family homes and condominiums were added to the database an increase of just two units from the week before. Fewer than half (28) of the 61 property listings that were cancelled or withdrawn over the cover of the week made a back up appearance as a new listing. By week’s end total active residential listings slipped from 1,567 to 1,537 units and reached its lowest level since the. The current active listing inventory includes 932 single-family homes and 510 condominiums. Unit sales of houses and condos bounced back to reach 55 the highest be recorded since. Interestingly sales in area 2 actually matched new listings for the week while sales in area 5 nearly doubled up on new listings offered for sale. I don’t want to overstate the significance of what could be a one-week blip but this is the first week that we’ve seen that happen since January of this year. There’s no denying that there is a near seven month give of Saskatoon homes for sale but it is starting to look desire our surplus inventory is slowly chipping away. In arouse of weaker demand the large gap between new listings and units sales has narrowed significantly over the past few months. Listing number in March. April and May of next year will create a clearer picture of where we are headed for 2009. Click the image for.
Following a week that saw the average selling price of a Saskatoon home spike this past week produced numbers which are more typical of what we’ve come to expect over the past couple of months. The weekly add up fell hard to just $275,436 and the six-week average sale determine resumed its decrease but steady decline reaching its lowest aim since to lay at $283,313. The four-week median selling price while slightly lower than measure week at $270,000 managed to maintain a come straight line on our interpret for the eleventh week in a row. Click the visualise for.
Saskatoon home sellers not only benefited from a higher number of sales this past week but they also struck deals which were closer to their asking price as the add up underbid declined to $12,623 from a whopping $17,214 the week before. The percentage of homes that sold within $10,000 of the list price swung back to settle just above the 50% mark up from just 42% the previous week. The percentage of sales showing discounts above $20,000 decreased significantly from 22% last week to 10% this week. Price adjustments were made to 80 active listings over the cover of the week.
LIMA. Peru — fix Minister Stephen Harper says Canada faces the prospect of a “technical recession” and Ottawa might need to take unprecedented actions to stimulate the faltering economy.
“The most recent private sector forecasts declare the strong possibility of a technical recession the end of this year the beginning of next,” Mr. Harper said Sunday at the change state of the Asia-Pacific Economic Co-operation summit in Peru.
“Yes. I am surprised at this. I'm also further surprised more importantly by deflationary pressure that we're seeing around the world. This is a worrying development one of the reasons why it may come up be necessary to take unprecedented fiscal stimulus.”
Sept 15. 2008: “My own belief is if we were going to undergo some kind of big crash or recession we probably would undergo had it by now.” - Stephen Harper
What do people on this come in think about the cost return of kitchen renovations? In my case. I am dealing with 30+ year old cabinets in so-so shape. I was planning to replace them with stock cabinets probably from domiciliate depot. I am going to attempt to use contemporary style and colors as I expect to change the place in the next few years. With the cabinets / countertops /backsplash I am looking at 5-6 k if I DIY. Given the current slow market conditions am I likely to get my renovation money back if I was to sell my house after renovating the kitchen?
Sounds desire the ominous financial situation involves Saskatchewan now makes sense if Alberta's cutting it's surplus predictions by 75%
And to add to Crikey's affix it's a beautiful thing that the expert the Conservative hired blamed the looming federal deficit(s) on Conservative policy not the economic down move. Shouldn't come as a surprise we heard about it during the election. Harper's not surprised he called the election to get voted in before the fall out he just was caught by affect how early the commodity led have crash started.
Sounds like the ominous financial situation involves Saskatchewan now makes sense if Alberta's cutting its surplus predictions by 75%
And to add to Crikey's post it's a beautiful thing that the expert the Conservative hired blamed the looming federal deficit(s) on Conservative policy not the economic drink turn. Shouldn't come as a surprise we heard about it during the election. Harper's not surprised he called the election to get voted in before the fall out he just was caught by surprise how early the commodity led have crash started.
55 sales this week! I am surprised that is higher than I thought we would see. measure month media across the country were reporting sales crashes. This month it is even worse. Anybody check Calgary lately? Ouch! 500 sales up to Nov 22 this month Last Nov they had 1103 SFH sales and that was slow.
I don't think you can go wrong with a kitchen reno in terms of added value to your home. New cabinets flooring and countertops will always stand out. I just finished a reno and here are a few tips:
I looked at the cabinets at Home Depot but I went with cabinets from Eurorite from J&H (Cyprus chocolate pear shaker style). Much nicer colors and styles and priced alter. They were there to help me every step of the way too. Very easy to assemble and install. Check out www eurorite com. believe ceramic tile as a flooring option. Much nicer than vinyl. By spending your money wisely (not cheaping out) you will see the investment back when you go to sell.
This is more of a historical question but I suppose it has merit considering the large numbers of houses being built recently..
Does anyone experience who the study house building companies were in Saskatoon during the housing go in the seventies? More specifically those who were working in Meadowgreen in 1976. My husband is replacing the aluminum wiring in our house with coat (odd since it became code again in '76 to use copper.. we must be the last accommodate in Saskatoon to be wired with aluminum) and he would like to place a flaming bag of dog poop on the doorstep of whoever built our house.
The more we look at how our house is put together the more we are sure that the contractors hired monkeys as labour. It maybe that they were under time pressure and drywall hides a multitude of sins.. but I wont forgive them for it. *end rant*
So.. given the time and labour pressures that companies are under today what horrors are hidden under the drywall of the 2007 and 2008 copy houses? I know I'd be alter P'd off if I paid all that money for a house and it was built stupidly.
Can you get away with just replacing drawers and door fronts? Or exceed yet having them professionally refinished (or choose up a spray gun and air compressor for a couple hundred to DIY)? That would probably be your best bet for return on investment if it's feasible.
If you need to regenerate. I also looked at Home Depot and J&H with J&H by far having the best determine and selection in the mid-range cabinets. Their mid-range lie is by Superior which is local (yay!). My mid-range laquer finish full-height cabinets with light valence. Blu communicate glides and lots of drawers came in at about $190/linear pay taxes and delivery included. Bonus: I don't undergo to assemble them! Home Depot at full price was $443/linear foot for exactly the same kitchen in a cherry finish although if you sight out about a sale before it gets advertised you can get in during the 15% off kitchen event.. comfort not worth it in my opinion though. Cherry/maple was about 30-50% more expensive than laquer in Superior's line depending on how dark you wanted to go. (and the Depot's version was so flat it looked fake) so say the cherry kitchen would go in at about $250-285/linear pay through J&H. I didn't be very much at the entry-level kitchens but my impression was that J&H beat the Depot hands-down on those too.
You don't be to throw away your money by over-doing it but make sure that your cabinets are the right quality for your neighbourhood or your potential buyers might be thinking kitchen reno anyways (I evaluate there are some guidlines on the Internet about what you should be spending on each part of the kitchen reno based on a percentage of your domiciliate's value if you're not sure). I'd also advise picking up Blumotion drawer glides and cabinet closes; they add a feeling of luxury for not much added cost. Let us know how it goes!
"I ordain go out on a limb here though and guess that we'll end the month ahead of the 2004 number. In fairness the five year average is 227 units. If we get anywhere near 200 it's a performance that is well bunco of 'abysmal.'"
55 sales this week is good. Unless we get at least 53 next week though you're going to miss your prediction... I guess we'll see.
As for 'abysmal' ... I rest by my choice of adjective. Even *if* we match 2004's numbers that comfort produces a 40% YOY drop in sales for November and ~ 18% off the 2004-2007 add up numbers for the month. Those are pretty big numbers and they can't be handwaved away; if you (RE publicists not you specifically Norm) want to tout the big numbers on the way up then you (see above) need to accept the big numbers on the way down too.
And I *experience* I have asked this before but somehow I remain confused. Next week Friday will be the last business day of the month so we'll see the numbers for the month then. Or will we? When Dec 1st comes do you (Norm) break out the sales from Sat/Sun and add them to the monthly be? Are they even reported for those days specifically by whoever collects them or are they aggregated into Monday's stats?
If the pass days get added in too then I agree we undergo a better chance of making your aim; if not then I'm sticking with *my* sub-2004-level prediction. Heck. I'll fasten with it anyway just so you can blow if you're right. :-)
Don't forget that the monthly numbers you've thrown forward are for the entire residential category. This is what SRAR reports on each month. We're at 145 units right now so provided the next five days produce 42 reported sales we'll undergo matched the 2004 numbers. SRAR's numbers will be released sometime after month end but it will only include sales that are reported as firm by the close of business on Friday. November 28. Whether it's me reporting on weekly numbers or SRAR reporting on monthly numbers they are always based on tighten sales which are reported during the period we're discussing. If a deal firms up on Monday the system recognizes it as sale on Monday regardless of when the assure was written. It's not a sale until all conditions are removed.
"Even *if* we match 2004's numbers that comfort produces a 40% YOY drop in sales for November and ~ 18% off the 2004-2007 average numbers for the month."
I accept but I think when you look back over the past five years it's pretty clear that November 2007 (and almost any other month during that year) is the anomaly. We used words like "insane" and "crazy" and "I can't believe it" on the way up. It's hardly catastrophic that we won't match them again any time soon. I'm willing to "accept" whatever numbers the month produces but even if we are 18% off of the five year average I'll say. "Hey we're pretty lucky in comparison to a lot of markets." It's not great but it could be far worse.
We've purchased a lot of stuff at J&H and always found them to be quite competitive. On top of that they're local and pretty good folks.
I can't say that I have enjoin experience with IKEA kitchens but I do have a client who has owned two. They liked them but had some issues with deliveries. On the second kitchen they had to displace stuff back a few times. IKEA eventually came through but it took a desire time to end up with a finished kitchen.
"Nov. 24 (Bloomberg) -- The U. S government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing $306 billion of Citigroup Inc debt yesterday. The pledges amounting to half the determine of everything produced in the nation last year are intended to rescue the financial system after the credit markets seized up 15 months ago."
It's getting harder to get gob-smacked but his sure does it for me. Perhaps the US assure of allegiance should be to the banking system now...
Inge Fransen measure month cut the asking price for her accommodate in the Netherlands by 11 percent as one of the final holdouts in Europe’s housing go capitulates.
The boom has left the Dutch saddled with the highest level of mortgage debt in the euro region just as the economy slides into a recession. As recently as the back up quarter the Netherlands was the only euro-area country among 11 surveyed by the Global Property Guide with rising property prices.
Irish real-estate prices have fallen 15 percent from their peak in 2007. In Spain the collapse of the housing boom will leave about 930,000 new homes unsold by the end of this year according to valuation company Tasaciones Inmobiliarias SA.
If you take it home when you change it they'll charge fees to weigh it again and to check it to be sure that you haven't added some other stuff to make it less valuable as an devalue (called "analyse" fees).
I would go with physical gold because I accept that paper is backed by the assets of the bank. If a Canadian bank were to fail. I am not sure what would happen. And I would want the gold in my hands. Personally. I do not believe any Canadian banks.
I am also looking at some gold mining stocks. Some were trading at 7,8 bucks a overlap are now drink to under a dollar. I believe they will go down some more though.
Regarding Gold: I agree with your sentiment George that you should not hold gold or plate certificates there is simply no way to be that the amount gold or silver you hold(certificates)is actually there for you to take physical possession of.
I have had success ordering both Silver and Gold through Gatewest Coins out of Winnipeg. They have a website and are easy to order from.
Something that should be taken into account would be that there is a massive undo between the comex(cover market) and the physical market. An ounce of silver ordain cost you about 6 dollars over spot if you can find any to buy. Currently 8+ weeks for delivery at Gatewest Coins. That is around 50% over the cover market. Gold is about 6% over the paper market. Historically the ratio is 3% over spot.
Precious coat stocks are also interesting. They act like a derivative to the gold price because they are leveraged to the gold price. So be careful.
Gold is almost at all measure highs in terms of Canadian dollars. In this inspect fulfilling its role as a store of wealth.
the scary thing about the chart is that Phoenix had the "catch up effect" in 2002-2006. And they had huge runups in price over a short time. Bidding wars etc.
Saskatoon went on the " we are undervalued" train in 2006 on. Doubling of prices in two years bidding wars etc. We will see a decline closer to Phoenix than Dallas.
Dallas learned from their housing bust in the 80's. Their gains in the measure few years were barely above inflation. That is why their change state is so low.
I suppose I brought some confusion by pointing to the Case Schiller graph. I wasn't thinking of accommodate prices so much as the economy in general. I think the graph effectively illustrates that things are different everywhere. Rome may be burning but at this point all economic indicators are comfort pointing towards growth for Saskatchewan. Of cover that may change. Nobody knows to what extent we'll be affected by economic happenings around the globe and there's no doubt that we ordain be but there seems to be some consensus that Saskatchewan is in as good a lay as anywhere else to weather the act. We are fortunate to be living here during this challenging time and I don't find it the least bit "sad" that Saskatchewan populate are optimistic about the future.
With all due consider if my foresight was as sharp as yours I probably would have sold my investments when the TSX was at 15,000 and my accommodate in May or June. :) Are you just going to sit approve and watch it happen or are you bailing out of that toxic College Park bungalow?
George the main difference between Phoenix and Saskatoon and Regina is that Pheonix is filled with speculative homes with nobody to buy them. Hundreds and hundreds. I evaluate Regina and Saskatoon don't undergo this problem on anywhere come the same scale. I talked to my father in law in Phoenix the other day and he said houses in his central Tempe neighbourhood hardly seem affected by the massive price declines. He said most of the price declines are the reflection of distressed sales in overbuilt areas skewinng those averages. Foreclosures are making up 40 percent of the sales in places desire Phoenix. I don't see that happening around here anytime soon. Do you? Then again we're pretty much 15 percent off the peak here anyway right? So what would a 30 percent decline be - drink to 240,000? Well. I suppose that could come about. That's what we are in Regina. But no more than that I would think. Massive distressed selling going on in those cities. Don't see the same measure of thing being possible here.
By hundreds and hundreds i mean thousands and thousands. I think Phoenix inventory is change state to 50,000. It was 5000 at one point a few years ago. And 16 months of list at one point earlier this year. If a high percentage of sales these days are purchases from the bank there are extreme underbids being accepted. I wonder what percentage of the be inventory drink there is foreclosures or spec homes. I'm guessing change state to half of it. In Regina or Saskatoon what percentages would we be looking at today? I'd be surprised if more than 5 percent of our listings in Regina were spec homes. Maybe Saskatoon is different but likely not by much. And foreclosures are probably lower than that.
George and Crikey. I comfort evaluate you two should each compose a come up written letter to the editor for the Star Phoenix they published exploit and you are both far more informed than I was - I'm just too busy to act up on latest housing/real estate issues these days.
Anyone else sight that the TSX is now Lower than the Dow? That is Canada's have market is slumping worse than the American market. Largely because of weakness in commodities and resource stocks...
Mark "George the main difference between Phoenix and Saskatoon and Regina is that Pheonix is filled with speculative homes with nobody to buy them. Hundreds and hundreds"
That's funny. You cognise that when there were over 600 vacant homes in Saskatoon and listings went from 300 to 1,800 (when our population was apparently growing) that we did (probably still do) have hundreds and hundreds of country bumpkins who invested at the peak on speculation often on houses that they couldn't really afford in the first place - oh come up as long as their jobs are safe and there's no market down turn or displace in oil prices....
Saskatoon has a lot of speculation homes and condo conversions where the entire building is based on speculation that's a lot of inventory that often isn't even listed with hundreds of additional sellers wanting to ride out the down turn before unloading hundreds more speculation properties onto Saskatoon
dish the dirt has it that Cameco is no longer building their new office tower in drink town Saskatoon due to credit problems and a lack of confidence in their own affiliate but Saskatoon drink town as a legitimate business center as come up.
Just another big communicate that was pumped up but whose cancellation is swept under the rug to make way for the next call dream...
Doesn't bode come up for Saskatoon investment or commercial wise and bodes poorly for business investment climate Canada wide as come up
I undergo to agree with Nick on the speculation thing but I expect we'd disagree on the measure of the problem. In Saskatoon over 2000 apartments were approved for condo conversion last year. I understand that similar things were happening in Regina. That's a problem that could act a few years to bring home the bacon itself out.
Phoenix is pushing 55,000 listings with a population of around 1.6 million. We have 1550 (2,500 if you be to look 50-70 km in every direction) listings with a population of 210,000. express me if I'm looking at this incorrectly but I don't see how Saskatoon is anywhere near the same condition as Phoenix.
As for foreclosures. I evaluate we can evaluate to see those numbers to grow over measure if the current economic climate continues. The U. S has a serious headstart on us and was already in the dumps while Canadians were buying real estate at a frenzied walk. There are definitely some Saskatoon homeowners with negative equity but again only about.3% of Canadians are in arrears at this point. Currently there are no foreclosure properties listed in Saskatoon.
Nick read my back up comment - i said thousands and thousands. Maybe it's tens of thousands of spec properties actually. Anyway as Norm points out very different scales. Also as I mentioned distressed sales skew the add up quite a bit. Established neighbourhoods in Phoenix aren't seeing those same 30 percent declines. Banks will take very low offers to get houses off their books. For an example. I offered less than 50 percent of asking determine on a foreclosed property in Regina this month and the bank took it. That's quite an underbid. Few homeowners would entertain that kind of distressed sale unless in very dire straits. Imagine if half the sales in a city were being handed over by a seller that motivated. That's Phoenix right now.
Also oil prices and income aren't that much different than they were 18 months ago for the province. And things were great then. House prices made most of their gains before oil went sky high. change surface at 50 dollars a barrel given our low Canadian dollar alter now. Sask is comfort raking in royalties. And more wells are pumping now especially in the Bakken. Less per barrel more barrels. And people are still coming here far more than they are leaving it seems. I had some properties up for contract last month and there was a steady be adrift of calls from populate out of the province on their way here.
Another curious thing I'd like to know about our list - how many people have two listings up? Can't be that many can it but in the last few weeks I've heard a few different stories about populate who bought up just before the merchandise stalled and currently undergo both their old and new house on the merchandise. If one sells two listings will dissapear. Interesting. Could five or ten percent of our listings bear on this kind of situation? Or undergo I just heard a few extreme cases? Norm any clients you know in this kind of situation?
Also before scoffing too much at Sask.'s economic promise in the near future we are about to embark on the largest infrastructure spending spree in our history. A lot more jobs alter there. And that doesn't include anything that's about to go out of Ottawa right away. Apparantly Ottawa is on the border of giving the okay to tens of billions of dollars in new infrastructure spending for projects that are ready to go now. From yesterday's Globe:
"Mr. Flaherty said he met with leaders of Canadian municipalities along with Prime Minister Stephen Harper and Transport Minister John Baird and asked them bluntly to give Ottawa a list of construction projects “that are environmentally approved that can go now that can put a shovel on the ground now.”
Some of those projects will likely be in Saskatchewan. And then there's ongoing oil money. Sure it's at 50 bucks a barrel right now. And maybe it will be displace in the next six months. But then what? The IEA this week came out with its inform predicting oil to add up 100 dollars a barrel over the next seven years. Then higher after that. Huge for our province's wealth.
Personally. I don't have any clients that are in that situation alter now. I do know of a few cases where one seller has two but I doubt it's a number that would really impact the merchandise in a big way. I do think that a good broach of the "vacant" properties that are currently available are not near ready for occupancy. A pretty good handful are just a "plan" at this point and the builder may later decide not to build it.
To me - that supports a very weak market with compromises and remove cars and no sales and sales below mortgages (one place that was just down the street when I lived there is now listed $10,000 below the be owed on mortgage and $70,000 below initial asking
"Mark you did repost but like all the boosters you undergo "hundreds and hundreds" and "thousands and thousands" tough to back up a position when the actual numbers all show the Saskatoon housing merchandise and provincial economy are in a down move"
Sorry don't understand your point. I was comparing Phoenix market to a displace like Saskatoon and explaining how they are very different environments. I and Norm backed it up with some numbers. Saskatoon would have to have 6500 listings to have a similar ratio population to active listings. Very different. I did back that up. If you be approve your point up.
I'm not denying a housing downturn or a weaker economy going ahead only pointing out what many economists have been pointing out. Sask is better positioned than most jurisdictions in North America to defy this out. And we're about to spend 1.6 billion on infrastructure. I think most economists are still predicting decent growth for Saskatchewan. Not sure I'd act your word over theirs.
I don't evaluate anyone could argue the federal economy is not in a "downturn" although you certainly could argue that Saskatchewan's economy is holding better than most. We need to keep in object that commodity prices which provided significant upward pressure earlier this year continued to droop this November and there certainly remains scope for these prices to slide further in the near term. Moreover with the economy increasingly showing signs of weakness downward price pressure on several other goods and services is likely. That being said we've got a goodly amount of resources in this province and demand is not going to go to zero barring Armageddon. One could change surface argue that this slowdown in demand and financing for exploration will only lead to higher oil prices as we won't immediately be in a lay to service any uptick in demand. I think if anything is glaringly obvious we need to be wary of economic "predictions". Including mine. I dare say. :)
Looking at the bubble chart. Dallas has lost about 3% from the arrive at while Phoenix is at about 38%. Saskatoon has just started the downturn in housing and has lost at least 10% from the arrive at maybe 15%. I personally do not think 30% is out of the challenge right now with decrease sales inventory comfort high unaffordable homes and ascribe contracting.
The problem is that Saskatoon gained so much in prices in the such a short time. Rental prices are now more expensive than mortgage payments two years ago.
House prices can only increase in relation to wage gains unless there is an expansion of credit. At the beginning of every bubble price increases are justified by the fundamentals but then things get out of control. Sure we don't have the amount of speculation or subprime like Phoenix to get to the housing bubble we are in. Saskatoon had other vehicles to reach the peak. Bidding wars easy cheap credit dread greed fear of being priced out etc as well as wage gains consumer confidence great economic activity led us to where we are now. When it is all said and done affordability is the key to any market.
desire I undergo said before we were not undervalued before everybody else was overvalued and we were just late to the celebrate. House prices were slowly widening the gap with respect to wages in 2006.
"In Saskatoon there's smugness too. accommodate prices here are up an average of 34 per cent in the last five years. That's three times the inflation rate
House prices are going up faster than salaries. More and more wage earners are thus squeezed out of the merchandise. For them escalating prices only drive advance out of reach the dream of domiciliate ownership."
So the government introduced 0 drink cash back and 40 year mortgages and took away at least 25% drink for an investment property. We are kno seeing all around the world the alter innovative mortgages have caused.
This is a great province and I like Saskatoon and our economy is forecasted to do well. But I can't back up but sight what the housing bubble and the ascribe bubble have done in the world and I believe the same thing is here as well. For example retail spending is in double digits yoy but I know wages are not in double digits yoy so people are spending on credit. Just yesterday there was an bind in the FP
"after internal bank figures showed Canadians were increasingly struggling to make payments on money they've borrowed."
I wrote a post a few weeks back that outlined why affordable house prices are good for everybody. Builders can act building at good pace and not lay off hundreds like in Alberta and they can still alter money realtors can make sales people from other provinces would move here and increase the tax base more advertising for the media home buyers are not accommodate poor parents do not have to dip into their savings to buy a condo for their kids and renters do not have to manifold up and be accommodate poor.
For anybody who is interested this is probably one of the beat websites on the net that deals with finance and economics that tells it desire it is
I'm not arguing for higher accommodate prices and I do understand the benefits of affordable real estate. I accept the current correction is healthy. I just evaluate that comparing Saskatoon to the worst housing merchandise in North America is probably a bit of a stretch.
Regarding my earlier mention about Potash Corporation. Turns out that it's worse than I thought. The project is actually worth 4.8 billion and is projected to employ as many as 11,000 people at the peak of construction in 2,010 and create as many as 14,500 jobs over the life of the mines.
Regarding the jobs at the Potash corporation. I don't think anyone would want to take the steam out of growth but there are different types of growth and they have subtleties that glance off of most populate.
Are these jobs come up paying ones that are going to go towards helping the populate who take them participate gainfully in a Saskatchewan economy? Is the growth driving debt amongst the people to keep up out of worry or a lack of alternatives? These may just end up being people who end up working there at a loss for the profit of the lucky few.
No ordain or gloom but there's jobs and there's good jobs. We've been having too much of the former these days to say that creating them is ever fully justified.
I'm going to be flying to Saskatoon next week. I was there a few weeks ago but only briefly. It will be nice to be in the area for a longer be and check out my old favorites. Ever since they closed the Winnipeg Freehouse and I moved approve. I've been without those delicious (and overpriced) thin change surface pizzas!
Which actually gives me a great tie-in to this discussion... I remember inquiring as to why prices at the Freehosue kept going up and up and - come up anyway: When I asked the boss on duty she said "oh because of the changing economy! It costs more to hire."
Norm. I thought your comments were bang on. Many populate here ordain be disappointed by the PCS expansion news. I conceal here from measure to measure and it mystifies me how some populate have so much measure to spin bad news. Some people post mini-essays multiple times a day! It has become so bad here that I actually came here this measure to see what kind of negative spin would be put on this announcement. That should be telling!
Alex. PCS jobs are all fairly high paying. Most miners are now making 6 figures. It is expected that most jobs ordain be around the $100,000 salary mark; see press releases.
A lot of the "reduction" in arouse rates has failed to meet consumers as prime - 0.75% is now fix plus something so a lot of the government's reduction is eaten up by banks
So I'm still considering renting in Saskatoon versus moving elsewhere that's cheaper but have an okay job in Saskatoon so ordain probably stay until they are done training me before moving to interior BC or somewhere cheaper.
In the interim what would be a reasonable rent for a 2 bedroom higher end condo? Downtown. Broadway or Sask Cres?
It seems that Mark think the local demand was the key motivation of 2006-2007 housing booming. I never thought in that way. It was the money from AB. BC and other places. I do experience some from AB invested in Saskatoon and Regina. For them oil determine dropping means more than folks in Saskatoon.
All the smart money got out of Saskatoon at the beginning of the year now it's the Johny come Lately speculators who bought a town house on the side trying to get out with at least some profit
Agreed that low oil prices will convey those from Alberta cashing out any sell in Saskatoon and having much less play money to fool around with in the still poorer remainder of the country
Thanks. Many of the most contradict people are caught up in a fairly difficult rental trap that has led to countless contract increases and even some eviction notices. They feel beaten drink by this "growing economy" and I suspect they think that any kind of growth will hurt them further. I evaluate that we're most likely heading in to a period where they go away to see some rewards from the growth. Conference Board recently predicted double digit "real income" growth for 2009. Interest rates will likely displace when credit markets loosen up. Mean time accommodate prices are dropping. Everything that's going on is working to alter housing more affordable.
Unfortunately there are no statistics like that available. My sense is that there are still a good be of populate moving to this area. I would say that a little better than half of the clients we've been working with over the past month are new to Saskatoon. We are also starting to see some activity from first-time buyers again. There's a reasonably good selection of single-family homes priced between 200 and 270K. It's first timers who are buying them. Believe it or not. I undergo had the odd call from "investors" in recent weeks (buy and hold types that are looking for positive change flow). Up until recently all of the investor calls undergo been from prospective sellers. :)
I evaluate another renter pretty much nailed it. I spoke with someone last week who just got an increase to $1250 for a one bedroom in Marquis Tower (no parking included) and another who pays $1150 for a 2 bedroom in Carleton Tower that includes parking.
I've been hearing on the CBC lately (there's a federal announcement over budget today) that 2009 will see increases in unemployment. How do any of us here think that will figure in when talking about wages going up?
Less jobs thus higher wages? Less employees thus under staffing? The imbalance in where the effects of inflation apply themselves confounds me!
The trickle drink approach is scary because it only seems to go so far before the promised improvements discontinue out.
I know you may not have implied it but things desire "a period where they start to see some rewards from the growth" are indeed what scare populate because they convey the assumption (interpreted by a misinformed reader) that the rewards have already happened.
A significant portion of the income increases will prove from $350 million in income tax cuts. Fuel is dropping like a stone. House prices have come drink a fair bit. If only rents would go.
Saskatchewan is still expected to grow through 2009. I hear that there's still about 10,000 jobs available here.
I'm lucky because my landlords are remarkable -- but I've got to say that I'd never pay 1600 for a two-bedroom -- not in this town.
Sign a contract for a year: that freezes contract increases. If you are paying month to month they can (and will) raise the contract every 3 months. My old displace went from 650 to 1200 in 8 months mould and floods and unlocked front door and pot dealers in the suite downstairs and all. For all I know it's still going up.
It's no longer insane so unless you have a pet or kids you won't have that much affect finding a place. I'd think.
I have been following Saskatoon RE for 2 years. I agree the houses below 300K are coming to reasonable prices before the false boom compared to 2006-2007. In that category also some people are still dreaming about the boom price...
However. I see there are lots of inventories in Willowgroove and Stonebridge in 350-600K range which are comfort sitting in that high be. In “Saskhouses” alone there are more than 50 houses in this category. Today itself I see 5 new entries in this category. Is this affordable to Saskatoon people or where these houses will end up???
everone just loves to cast aside talk saskatoon but i think were in a pretty good position oilfield/tar sand construction is cutting back alot the automotive industry is tanking at least we have news about expansions and job creation with potash corp and i read about a canola plant being built and also the sask government are giving sasktel 90 million to upgrade infrastructure in saskatchewan.
where do you suppose all the laid off auto industry and tar sands construction trades people are going to go? i wouldn't bet on the house prices crashing anytime soon nation wide saskatchewan is looking pretty good.
today. I am only posting good news for economic activity and jobs. Many places in Canada are in recession and some are possibly in the beginnings of a depression but we are living in a place that the government cities and companies in this great province have the money credit and confidence to expand and invest in the populate and our future. These are troubling times and sometimes we should be thankful for where we live. Not only keeping our jobs but creating jobs is a great feat.
I can't agree with the first part of that statement. There are very few populate on this blog that openly slag this neck of woods. Anyone with two hit cells to rub together can see we're better positioned to ride out this economic climate than most.
My preserve (who also occasionally posts here) and I were just discussing how the "go mentality" seems to be abating a bit. Last year at the height of the housing frenzy we met with a banker to discuss a mortgage pre-approval. We ended up qualifying for far more than we were prepared to pay but that's not really the inform. When we balked at the fact that what we were looking at had "appreciated" nearly 80% in less than two years the person actually said. "Don't worry this accommodate will appreciate another 30% by this time next year and you can always refinance!" with an idiotic grin on her face. Seriously! We didn't drink the Kool-aid but many people did. I feel bad for those people as they may have already lost their equity even with a sizeable drink payment. Growth is good but let's please keep a level head.
It seems a lot of people believe that just because the economy is doing well that housing prices should skyrocket (which they have). I accept that Saskatoon's economy seems to be doing well and that can have an influence on the real estate market but only if it translates to more jobs and higher salaries and most importantly.. more populate b/c at the end of the day it's all about supply and demand isn't it? Saskatoon's real estate boom was principaly due to two factors... the 40 year mortgages and speculators. Unlike Calgary. Edmonton. FtMcLeod etc... Saskatoon did not see a huge jump in its population and in fact by some accounts will see a drop in population. I experience some of you will say.. oh boy another ordain and gloom post but honestly.. for someone who has recently go here from out of province... it just doesn't make sense.
Saskatchewan people are all decided to pay their life savings (authorise lie of ascribe!) to bring up the economy beyond what their incomes can alone!
No big deal unless of course they ever lose those jobs or their debt gets too big or their speculation condos they bought a year too late as amateur investors loses ANOTHER $30,000
You know. I'm one of those people who do think houses were undervalued here before the boom. They may be overvalued now but how much who knows but there's no doubt about it housing was cheap here four or five years ago. In Regina my wife and I bought our first house in 2002 for 110,000. It was a nice character accommodate in a nice neighbourhood. We had an average family income of 70,000. We each made 35,000. Even we were shocked at how far that money would go when it came to our house. As were most people we talked to who lived in other cities. Our mortgage payments were 500 dollars a month. Since we could live on one pretty much one of our incomes at that point with those costs we actually entertained the idea of paying off our mortgage in 6 or 7 years. Friends of ours in Saskatoon at the same measure were in the same boat average household income similar prices accommodate and planning to pay it off with one of their incomes. Of course instead we all used that extra disposable income to go on hot weather vacations and the like but the point being when we could buy a nice accommodate back then for 1.5 times household income prices were cheap. Nobody would pay an extra premium to be here. It wasn't like there was a wealth of jobs. Well now there is so perhaps our house prices should be more in line with three times household income like many other places. Once Saskatchewan became a place worth moving to for a job say our houses went from being extremely affordable to eventually unaffordable. Affordable provided people be to be here is 240,000 or so isn't it. If people are willing to pay a premium to be here it ordain probably stay higher. My poing being I don't think the whole 'we were playing catch up thing' is completely fallacious. We had very affordable houses leaving many of us with extra income. It was one of the things we touted about this province. Now that there is a reason to b here other than it simply being 'a cheap place to live' tough to see it becoming extremely affordable again. Affordable sure or change state to it but not much below that.
I evaluate the mentality of society has is that higher accommodate prices equates wealth. In reality higher house prices equals more debt. This housing increase has only put more debt for the people on the bottom of this real estate chain.
arouse rates have relatively been about the same the last 5 years. So house price gains can only increase in relation to wage gains. Anything more than that we be an expansion of credit.
We are both in agreement that houses are too high and nobody knows where prices will end up. This province is in a great postion right now. Looking at this realistically; good times (economic boom) do not always last. All we have to do is look next door to Alberta. Oilsands construction and their spinoffs (retail spending is drink yoy)have really turned on a dime. But debt there is at an alltime high.
An affordable accommodate determine? I would say 2.5 times income with no debt. Maybe lower. I desire to undergo a buffer in case of a downturn in economic activity or higher interest rates.
"Interest rates have relatively been about the same the last 5 years. So accommodate price gains can only change magnitude in relation to wage gains. Anything more than that we need an expansion of credit."
And there's nothing automatically wrong with an expansion of credit provided people can pay for it. House price gains can outstrip contend gains if people are willing to spend more of those wages on their housing or the financing of it. We had a fair amount of disposable household income in this province pre-boom. We are now spending more of it on our houses. We've overshot for sure but we had room to begin with to move up the scale the ratio of wages spent on housing.
You have a point but don't evaluate it's likely that your eperience in 2002 (house for 1.5x household income) was typical then. It's certaininly non-existent now. What is the add up household income now in Saskatoon now about $74K/yr? Is the average house in this city even close to 3x that? Not yet. Whatever measure you use to determine "typical" housing affordability it got way out of whack. When the ratio of mortgage payments to disposable income gets too high households become increasingly dependent on rising property values to function their debt. This leaves no fiancial cushion to react to nay potential contradict life/economic circumstances. At some point those property values forbid rising as people cannot function more debt and *viola* the breathe pops.
Those that got in late are most at risk from any price drops and may quickly see their equity destroyed (if they had any to begin with). If they can't hold the property long enough to see it acknowledge again big affect can quickly ensue.
"And there's nothing automatically wrong with an expansion of credit provided populate can pay for it."
I totally agree with this statement. From 98 or so till 06 there was a healthy expansion of ascribe with respect to wages. Since then we jumped onto the credit bubble train. Now credit is contracting and there are many people in over their heads.
Oh yah. I know it's expensive now and a further expansion of credit for housing is over. My inform was related to pre-boom times. Housing was cheap in Saskatchewan relatively speaking. We pointed to that as a selling feature for our province. Prices ordain correct but will they correct to it being considered cheap again? Not with a strong economy. More affordable yes but not cheap. Mainly my point being that we were playing a bit of catch-up. Part of the boom was that. Not all of it but move of it.
Ouch and they still be like a load of cash. I saw a magazine of Phoenix listings the other day. There were some homes I'd love to live in for under $100K.
How to be a vulture: "I’m often asked by people who desire to prey on others how to buy real estate in a falling market like this one. The danger of doing so is that you buy before the bottom arrives and take a capital gains hit. The favor is you hold absolutely all the cards and can strike a great deal while the victim-seller is writhing in pain and begging for mercy. That’s the fun part."
This man has a strange idea of "fun." I'm not saying that a buyer shouldn't try these things but watching someone who "is writhing in pain and begging for mercy" isn't my idea of a good time.
I've seen several of these Peter Schiff snippets. It's hilarious how they actually laugh in his face only to eat crow later. I tend to bend in his direction. America is probably insolvent. I suspect that they'll find a way to draw another good run though before they finally drive themselves to bankruptcy.
A few thoughts on gold for you and Crikey. Picked this up behind the wall at GlobeInvestor. Thought you might find this choose interesting.
"The determine of gold topped $1,000 (U. S.) an ounce earlier this year and then lapsed into a change state that took it to the $700 range. Recently it has rebounded approve above $800 as part of the same flight-to-safety furnish that has driven down government attach and T-bill yields. Gold could undergo a bright future if the U. S dollar were to fall from its current high aim – bad times for the buck create investors to seek the security of gold. Then again gold could be shunned at a measure when inflation always a plus for gold is no threat at all thanks to a global economic decline.
If this mixed outlook doesn’t make you wary of gold then believe the returns investors have made in the medium term. The average precious metals finance actually lost 5.4 per cent on a compound average annual basis for the five years to Oct. 31. The average loss for the past three years was 6.5 per cent and for the past two years it was almost 30 per cent."
If I was closer to retirement. I would consider one of those newer houses going for 100 bucks sq ft including a pool backing a play course. If only I knew how to swim and golf :(
As if the visible acknowledgement weren't enough of a testimony Norm's character. I would like to let people know that he even sent me a personal email to ensure that I would not miss his comment.
I evaluate that November was shortchanged a little by the way the business days fell on the calendar this year but maybe it'll help the December numbers? Either way. I will now go on record as predicting in December sales in the 120s.. or lower (ouch). If I'm wrong. I ordain be as magnanimous in my desire as Norm was.
No Merril Lynch saying Saskatoon was 50% over valued (when most of us only evaluate it is 20 to 30% over valued) by was kind of earth shattering end to one sided positive news so of course it didn't get any coverage the media was busy going wild over estimates of GDP growth for 2007 that all overshot Saskatoon's average economic growth.
I think John Gormley is an impediment to recruitment of new residents to Saskatoon. desire Tom Lukiwski. Gormley (News Talk's poster boy) gives us the intolerant red pet appearance.
Gormley. Wood et al are beligerently against any realistic assessment of Saskatchewan's actual mediocre performance at pretty much everything.
I personally think those are great numbers given the kind of press the world has been through these past few months. If not for non-stop headlines of the economic change of the century you probably would undergo had well over 200 sales. Some people balked. I really do evaluate those numbers in the face of what we're going through are pretty good. label me crazy. Anyway my bet is on a strong January and February and the TSX back over 10,000. I'm optimistic for sure very much so but I believe approve in September some on here predicted 10 months of list and a 240 add up by years end too. That seems a little dire now.
Norm as far as I experience. America has a fairly normal debt to GDP ratio in the world. I mean may other G20 countries have higher burdens given the size of their economies. George? Plus all the money the US government is spending alter now isn't gone so to speak. It's not desire dropping bombs. A lot of it is stock and assets that may pay approve. George?
I don't do any bring home the bacon with rentals so I haven't tracked the numbers. CMHC does do a "Rental Market Outlook" on an annual basis. Not sure if you can sight archives on their website at www cmhc ca but you may be able to call them and get access to past reports. Only issue really is accuracy. I find their more recent reports really understate rental amounts.
For what is available. Saskatoon is quite expensive contract wise. Was considering a act out there myself but decided against it when on tour of some rental accomodations was not enthused by circa 1980 orange apartments with street parking in minus thirty weather all for what I pay for under ground 10 blocks from the U of A.
Saskatoon had appeal when I first looked a few years ago but with rental rates beyond Edmonton and the level of jobs below Alberta it does change state a tough sell. Not sure it "sucks" but the rental rates sure do!
The positive which I have taken away from my little trip to Saskatoon is that Edmonton is a pretty nice displace to live and the "high cost of living" argument for Edmonton just isn't backed up as it is quite competitive to "domiciliate". Haven't lived in Saskatoon for quite some time anyway but now there really is little reason to move approve.
Nick. I had a look at that bind you posted and I don't think it really backs up your point. The economist states that Saskatoon is overvalued by 21%. That isn't really a substantial difference considering some of the cities in the states were overvalued by closer to 100% before they crashed. The article also states that the economist doesn't expect price decreases:
'To be alter. Ms. Warren is not predicting a Canadian housing collapse but rather a cooling in price gains. Nationally she expects prices will go 10 per cent this year slow to the “high single digits” next year and eventually go back in line with the evaluate of inflation which would put them between 2 and 2.5 per cent.'
Somewhere but it's getting easier to lose track of stuff around here. Tell you what though. I'll update that one and affix it with my monthly review which will be up before the end of next week.
Bless you! This merchandise is treating me well as I am learning how it works. My listings are selling and I'm running low on list. Perhaps I'll have nothing to do over Christmas. :)
Today’s be U. S credit relative to GDP has surpassed significantly the levels preceding the Great Depression actually. Back then the total amount of credit in the financial system almost reached an astonishing 250% of GDP. Using the same metric today the debt aim in the U. S financial system surpassed 350% in 2008 and that's not change surface counting the measure few month's worth of bailouts.
As of November 19. 2008 the total U. S federal debt was $10.6 trillion with about $37,316 per capita (that is per U. S resident). Of this amount debt held by the public was roughly $6.3 trillion. Adding unfunded Medicaid. Social Security. Medicare veterans' pensions and similar obligations this evaluate rises to a total of $59.1 trillion or $516,348 per household.
The US debt in the hands of foreign governments is 25% of the total virtually double the 1988 figure of 13%. Lenders from Japan and China held 47% of the foreign-owned debt. This exposure to potential financial or political risk should foreign banks forbid buying US Treasury securities or start selling them heavily was addressed in a recent report issued by the Bank of International Settlements which stated. "'Foreign investors in U. S dollar assets have seen big losses measured in dollars and still bigger ones measured in their own currency. While unlikely indeed highly improbable for public sector investors a sudden rush for the exits cannot be ruled out completely."
Actually you might say most of the money was lent into existence. Check out "fractional reserve lending".
measure I checked most condo boards have rules against this kind of thing: if you've shelled out 300K plus for a condo the last thing you want is an unlicensed and unsupervised B & B operating on the other align of the wall.
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Related article:
http://www.teamfisher.com/blogs/norm_fisher/archive/2008/11/23/saskatoon-real-estate-week-in-review-november-17-21-2008.aspx
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