Real Estate Information

The Bank of Montreal Capital Markets expects Saskatchewan to be the only Canadian market to post economic growth in 2009.

"Real GDP will likely expand 0.4 per cent this year, the only province in Canada to see growth," said Robert Kavcic, an economist with BMO Capital Markets. "This will be followed by a 1.9 per cent expansion in 2010."

Saskatchewan's diverse commodities mix has helped it weather the economic downturn, the bank said in its report. Potash demand, however, was down 55 per cent in the first quarter, but the energy sector continued to do well thanks to relative cost advantages over Alberta.

Kavcic said Saskatchewan's most important commodity during the past two years has been people, with the province netting more than 13,000 interprovincial migrants since the start of 2007.

He said Saskatchewan is the only province yet to see job losses this recession.

Saskatoon Star Phoenix

After three years of looking at what makes a city great, Corporate Knights (an independent Canadian-based media company that publishes the world's largest circulation magazine with an explicit focus on coporate responsibility), has found that the lives of Canadians are deeply affected by how well their cities address their needs.  According to their research, Saskatoon has retained 2nd place in the annual Canadian sustainable cities ranking in 2009 (in the smaller cities category).  Saskatoon also outperformed larger cities such as Hamilton, Montreal and Winnipeg, overall. 

(Business View Magazine - Greater Saskatoon Chamber of Commerce)

Saskatoon's strong affordable housing programs support low-income home-owners and projects through tax exemptions.  The city also prioritizes city reviews for approved affordable houseing projects.  These projects translate into a reality where Saskatoon residents spend about 18 percent of their annual income on shelter, whereas in Charlottetown it is as much as 25 percent.

The average price of a Saskatchewan home rose four per cent in May to $242,829, driven up by increases in four cities, the Canadian Real Estate Association (CREA) reported Monday.

While Saskatoon resale homes were down seven per cent from last May to an average $279,477, the average price in Regina jumped 12 per cent to $263,424.

Record average prices for existing homes were also posted in Yorkton, Swift Current and Prince Albert, said Gregory Klump, CREA's chief economist.

Some downward pressure on the Saskatoon price has come from an oversupply of homes on the market in recent months. However, the number of Saskatoon listings fell (from May 2008) nearly 30 per cent  in May to 721, while sales crept up 1.4 per cent to 372, CREA reported.

Klump noted sales in Saskatoon are consistent with several years before the run-up in activity that started in late 2006.

"It's returned to stable activity," said Klump in an interview.

"You're only down when you compare it to that record run-up in activity, which I don't anticipate in the near future," said Klump. "I do anticipate sales will remain steady at your current levels."

The total value of existing homes sold in Saskatoon was $104 million, down six per cent from last May. Regina's dollar volume was $102 million, up 21.6 per cent from last year.

CREA said Canada's resale housing market activity returned to pre-recession levels in May, led by an increase in some of the nation's more expensive markets. Seasonally adjusted sales rose in approximately 70 per cent of local markets.

The national average sale price of multiple listing service (MLS) homes reached a record $319,757, up four-tenths of a per cent from last May.

Klump said CREA does not anticipate a crash to follow the improvement. CREA believes Canada will not see the kind of price correction experienced in the United States because this country did not have the run-up in prices or the kind of speculative activity seen in the U.S.

Regina broker Dale Ripplinger, president of CREA, said sales activity is closer to the pre-recession peak than the trough hit in January.

Improving consumer confidence, low interest rates and improved affordability are bringing buyers into the market across the country, he said.

As you can see by the chart below, sales surrounding Saskatoon are increasing, with the number of units sold in May at 97, up from 29 in January.  The average sell price at $241,080 in these areas (year-to-date), is not far behind the city's average year-to-date price of $276,091.  The time it takes to sell a property outside of Saskatoon is an average of 64 days, year-to-date.  This is somewhat higher than Saskatoon's year-to-date average of 46 days. 

If you're not sure what is meant by Areas 6 to 9, take a look at the map below which shows what towns and communities are included in this surrounding area.

Map showing areas 6 to 9 surrounding Saskatoon:

A good portion of these surrounding area sales are in the bedroom communities of Martensville and Warman, which are 15 & 20 minute drives from Saskatoon. This graph shows the number of units sold in the month of May in the years from 2005 to 2009.  As you can see, sales have increased substantially in these towns this year.

As always, I'm available to answer any questions you might have.  Give me a call!

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The number of residential listings in Saskatoon continues to rise.  There were 721 homes placed on the market in May 2009, compared to 694 in April.  At the end of May, buyers had 1,532 residential listings to choose from, up from 1,499 homes at the end of April.

Sales continue to rise as well.  In May, 372 homes were sold, up 5.4% from April's total of 353 homes.  This number is also up from May 2008, when 363 homes were sold.  The average sell price this May was $279,477 with an average of 41 days to sell. 

Out of May's 372 sales, 111 were condos, varying in price from $445,000 down to $79,000.

Area 1 (east of Circle Dr.) continues to be the most active area of Saskatoon with 242 units listed and 147 units sold.  The average sell price per unit is also the highest in this area at $306,936. 

Sales numbers in the $300,000 to $349,999 price range were the highest at 52 units sold.  The $275,000 - 299,999 range was a close second at 44 sales.

"Summer sales and listing activity is expected to remaining similar as the market continues to correct with excess inventory moving through the system. Saskatoon has been somewhat effected by the global recession but all indicators point to the local market remaining steady in the next few months"  (From SRAR June Media Release)

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If you are a "First Time Home Buyer," there's a Tax Credit in store for you!

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009.

Here are a few Q & A's from the Canada Revenue Agency website: 

1. What is the Home Buyers' Tax Credit (HBTC)?
For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

2. How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?
An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

4. What is a qualifying home?
A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

For more details & information go to:  http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

There's never been a better time to buy a house!  Just take a look at these interest rates:

The latest rate cut means consumers buying a house can borrow for as little as 3% interest on their loan if they are willing to buy into the Bank of Canada's statement that it won't be changing rates until June, 2010.  If you don't believe the bank will hold steady on its promise, you can lock into five-year, fixed-rate mortgages for under 4% on a discounted basis -- the lowest rate in Canadian history. (Financial Post, April 22, 2009)

The regular rates at Banks seem to be approximately 1% higher than Mortgage Brokerage Companies, as this graph clearly shows:

     In April, the $300 - $349,999 price range saw the greatest activity with 62 residential sales in Saskatoon.  The $225 - $249,999 and the $250 - $274,999 range was also quite active, with 46 sales in each range.  
     Looking at year-to-date sales, the $300 - $349,999 price range saw the most activity with 157 properties being sold from January to April. Sales in the upper price range remain steady:
  ~ $350 - $399,999 -- 90 properties sold
  ~ $400 - $449,999 -- 49 properties sold
  ~ $450 - $749,999 -- 51 properties sold
  ~ Over $750,000    -- 4 properties sold
Under the $300,000 mark, year to date sales were as follows:
  ~ $275 - $299,999 -- 116 properties sold
  ~ $250 - $274,999 -- 125 properties sold
  ~ $225 - $249,999 -- 135 properties sold
  ~ $200 - $224,999 -- 101properties sold

     The average selling price in April was $274,455, down from April 2008's average of $306,031.  To arrive at the monthly average residential price, the total dollar volume of the month is divided by the total of units sold.  Prices vary substantially from area to area.  If you, as a homeowner are looking for an accurate estimate of value for your property, please contact us at The Gustus Group and we would be happy to do a comparative market analysis.  Or you can also go to www.homepricessaskatoon.com.

In April, 694 properties were placed on the market through the MLS system, down 23% from April 2008, when 896 homes were listed.  There were 1499 properties for buyers to choose from at the end of April, down from the market high in September of 2008, when the total properties listed was 1748.

Saskatoon Realtors helped 353 buyers purchase a home in April.  Although this number is 15% lower than April 2008, when 413 units sold, it is up almost 25% from March's total of 283.  2009 sales figures were ahead of 2005 and 2006.  This graph shows April Unit Sales from 2005 to 2009.

The number of residential listings in Saskatoon continues to rise.  There were 694 homes listed in April 2009, up from 662 in March, 568 in February and 512 in January of this year.  At the end of April, buyers had 1,499 residential listings to choose from, up from 1,156 homes at the end of January 2009.

Sales have also increased substantially.  In April 353 homes were sold in Saskatoon, up from only 213 in Janaury of 2009.  Houses are starting to sell a little faster as well.  In January & February it took an average of 56 & 53 days to sell a home, while in March & April the average went down to 44 & 43 days, respectively.

Looking at the different areas of the city,  Area 1 (east of Circle Dr.) saw the most activity with 916 units listed and 380 units sold since January.  Area 2 (Eastside between river & Circle Dr.) didn't have near as many homes listed, but comparatively speaking, sold more at 272 units sold since January.  Areas 3 (North end & downtown), 4 (between Idywyld Dr & Circle Dr W), and 5 (west of Circle Dr) were considerably  behind areas 1 & 2, with year to date listing totals of 357, 276 & 333, respectively.  Number of units sold since January in areas 3,4, & 5 were 119, 106 & 180, respectively.

As the graph belows shows, the average sale price of residential properties varies from month to month, with February being the highest so far this year at $281,681

As always, please feel free to email or call if you have questions or would like to discuss real estate.

Maybe you've heard and seen "MLS" in various places, but aren't sure exactly what it means.....

It stands for Multiple Listing Service, a member based service, paid for by Realtor members. MLS is a complex information-sharing and cooperative marketing network created by Realtors several decades ago.  While it is computer based today, it began as an exchange of paper listing information and photographs.

When you list a house with The Gustus Group or any real estate agent, you can choose an "Exclusive Listing Service" or "MLS".  When you list exclusively, only that agent or broker can advertise your home.  If you choose a multiple listing or  MLS, it is entered into the computer based system where your property will received maximum marketing exposure to all other members of the local real estate board.  ALL agents will have access to the detailed information about your home, such as room measurements, floorings, renovations, appliances, etc.  Also, the public can view your property on Realtor.ca (with less detailed nformation).  So using MLS will reach many, many more people than an Exclusive Listing would.

Because a property is on the MLS system, any agent can show your home, not just our agents at The Gustus Group.  On the other hand, if you want to view a property or several properties, no need to call the agent(s) on the sign(s).  Call us at The Gustus Group and we will give you information about the property(s), and/or arrange to show you as many as you'd like to see.