Real Estate Information

Here's a great video with some simple tips to keep the cold out this winter.  Just one note of caution regarding the tip about roof vents.  For our climate, I don't think it's a good idea to cover the roof vents; this could trap heat in the attic which could cause frost build up. And if left unventilated too long it may cause mold issues in your attic.

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The September stats are in. The Saskatoon market is showing an increase in unit sales in our YTD numbers. In 2008 the year to day sales were 3773 single family properties. In 2009 YTD unit sales are 3848 in singles family properties -a small increase. The Increase in sales over 2008 in September is 98%. While this sounds great, the YTD unit sales show the real picture. The good news for sellers is that the inventory is coming down. Prices are stablizing with good volumes in the $200,000.-$350,000. range. We are now in a shortage situation with east side townhouse properties in the $200,000.-$300,000 range. The buyers are still cautious about the amount they pay for properties, but the prices have now stablized. I expect we may see a small rise in prices in the lower priced properties on the east side in the coming year. It is a good time to consider buying. The interest rates are the lowest in decades and there are grants available to assist buyers in home improvements.

For sellers it is great to see that prices have stablized and the demand is good for most price ranges.

We even had one sale over the million dollar range last month.

Come back for more updates in the coming weeks.

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The market remains steady to the end of September.  There were 516 homes put on the market during the month of September, only 1 less than in August.  Looking at sales, 351 homes exchanged hands in September, that number slightly down from 393 in August. Comparing numbers with 2008, there were 825 units listed during the month of September and 246 units sold during the same time period.

The number of available listings for buyers to choose from decreased slightly, down to 1,097, compared to 1,148 a month ago. 

The average selling price of a residential home in Saskatoon at the end of September was $279,457, down from the previous month's average of $281,871.  This graph shows a steady decrease in the average selling price since July.  Does this mean that housing prices are coming down?  Not necessarily.  A closer look at stats shows that more homes in lower price range are selling versus less homes in the higher price ranges. 

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When it comes to buying a home, women make the decision quicker than men, according to a recent survey by Coldwell Banker. When asked when they knew their home was 'right' for them, almost 70 per cent of women made up their minds the day walked into the house, versus 62 per cent of men, and 32 per cent of men needed two or more visits, while only 23 per cent of women did.

The survey showed the inherent differences between men and women, as well as uncovered a number of ways they are the same.  For example, both men and women are concerned with being able to have space to work at home, something not considered 40 years ago.

Here are some other interesting survey results:

• Fifty-five per cent of women expressed that it was more important to live close to extended family, than to their job, compared to only 37 per cent of men.
• When asked who's the boss when making major financial decisions, almost 70 per cent said it's mutual.  However, 23 per cent say they are the leader in the relationship, not their partner.  More men (26%) then women said this (20%).
• Women are slightly more concerned about security.  Sixty-four per cent said if the home of their dreams had issues regarding security, they would no longer be interested.  The men weren't far behind at 51 per cent.
• Both genders came up with basically the same answers as to how they would choose to use an extra 12 x 12 room:  25 per cent said a bedroom, 15 per cent an office/study, 11 per cent chose a family room/den and 8 per cent recreation/entertainment.

These results show there are many aspects to consider when making one of the biggest decisions in a person's life.  A real esate professional can be very helpful, especially to couples unfamiliar with the process and all the areas that need to be considered.
(Source: REM Magazine)

Please give me a call if I can be of any assistance in this or any other matters relating to real estate.

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The City of Saskatoon is examining the feasibility of allowing garage and garden suites for discretionary use in Saskatoon neighborhoods .

A garage suite is a suite built above a backyard garage, while a garden suite is a small stand-alone "little house" in the backyard as well.  Both of these concepts would provide needed accomodation for students, those with limited income, and seniors.  The garden suites, being ground-level would particularly appeal to seniors, especially when family members occupy the primary residence, and would also help with the affordable seniors housing shortage.

Garage and garden suites are unique housing options that offer more privacy and natural light than basement suites.  Tenants would benefit from the increasing rental opportunities in established neighborhoods, while homeowners would be able to offset their mortgage payments with the revenue from the suites, and the City would benefit from more efficient use of exisitng infrastructure.  With a maximum propsed floor area of 702 square feet, garage and garden suites may be a desirable choice for many individuals, couples and single parents.

Public consultations are curently underway.  Citizens have generally been supportive of this concept, but draft regulations have been written to address concerns expressed about parking issues, privacy, and the need for these suites to be properly built and architecturally attractive.  Feedback received from the public will be integrated into a final proposal that will be brought before City Council late in 2009.

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Sales in the areas surrounding
Saskatoon (areas 6-9 as shown by    the map) this year have     been     steadily increasing, while     the   number of listings have come     down,   creating a more balanced     market (see chart below). The     average price for      these   areas    has seen a steady     increase as    well  with the average   selling    price in January being $204,166   and up to  $270,488 this past     August. 

More specifically, in Saskatoon's bedroom communities of Martensville & Warman, sales have increased as well, especially in Martensville this past  summer.  See graph below. Perhaps it has something to do with the following announcment:  Earlier this month, Premier Brad Wall, Municipal Affairs Minister Jeremy Harrison and Mayor Giles Saulnier introduced Martensville as Saskatchewan's 15th and newest city!  "We are very happy to be Saskatchewan's newest city," Saulnier said. "We are such a young community, only 40 years old, and we have accomplished so much, I can only imagine what the next 40 years will bring."    Martensville's population has double in the last 20 years.  Their city status will take effect on November 3 to coincide with the first council meeting after this fall's civic elections.  Martensville was incorporated as a village in 1966 and became a town in 1969. 

Martensville is an approximate 15 minute drive from Saskatoon, while Warman is about 20 minutes.  Both communites are now serviced with twinned highways. This may be a contibuting factor to the increase in growth rate.

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The end of August brings a more balanced market to Saskatoon residential Real Estate.

There were 517 homes listed during the month of August, compared to 594 in July.  Buyers had 1,148 listings to consider as of August 31st, compared to 1,291 at the end of July.  Comparing numbers with 2008, there were 805 units listed in August 2008 and only 741 units available for sale at the end of August 31, 2008. 

Last month 393 homes sold, up from 224 in August of 2008. The average selling price was $281,871 per unit, which was up a little from last year's average sell price of $279,366.  It took an average of 39 days to sell a property in August 2009, compared to 38 days in August of 2008. 

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Mortgage rates are at their lowest in years.  Here are a few issues to consider, whether you are taking a new mortgage on a home purchase, or re-newing your mortgage term.

You want to make sure you get the best interest rate.  If you go to the financial institution you are currently dealing with, you will most likely be quoted the “posted rate”. This rate is generally up to 1% higher than you should have to pay. Doing some competitive market research before hand can be helpful to negotiate a better rate.

Open vs Closed Mortgages

When selecting a mortgage, you can choose to pre-pay it in part of full at any time without any penalty.  This is called an “open” mortgage. You pay a slightly higher rate for an open mortgage, as the lender has no certainty if you will pay it off before the end of the term. Alternatively, you can lock a mortgage for a period of time at the same rate, e.g. for 3 or 5 years.  This is called a “closed” mortgage. If you pre-pay a closed mortgage before the term is over, you will have to pay a penalty.

Fixed vs Variable Interest Rate

When you take out a mortgage, it could be at a fixed interest rate for the duration of the term, e.g. 5% for the 5 year term, or it could be at a variable rate. This is generally set at the prime bank rate or below that, and can vary weekly based on any change in the prime rate.  Generally, a variable mortgage is lower than a fixed mortgage. Some people prefer rate certainty for the term so they can budget accordingly.  Others prefer to monitor mortgage rates and convert to a fixed rate mortgage if the rates start going up.

Monthly Payments vs Accelerated Mortgage Payments

Many people routinely pay their mortgage payments monthly.  However, if you pay more frequently than that, e.g. every 2 weeks or every week, your savings on interest over time is phenomenal.

If you are considering buying or selling, please call us.  You can count on us to provide you with the highest level of expertise and service in the real estate industry.

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Are you thinking about selling a home that is vacant?  A home that is occupied is more secure from invasion, fire and the little unexpected things (like a leaky roof, etc) that can develop into major problems.  Also, an empty space will look smaller than it really is and it is harder for prospective buyers to envision their furniture in it.

The other aspect to consider is insurance.  If you are moving out before your house is sold or before the new owners move in, it's quite probable that your insurance policy won't cover the home if it is vacant more than 30 days.  "Every year thousands of homeowners leave their home empty or vacant without understanding the provisions of their homeowner's policy, and risk everything,"  says the CREA brochure, What Realtors Should Know About Property Insurance.   Most policies will allow 30 days vacancy, but past that, claims may be denied. There may be no coverage, or reduced coverage, in the event of a serious loss, such as fire.  Insurance is available for vacant homes, but costs about 1.5 to two times as much as regular homeowners' insurance and may not be as complete.  For example, water escape, vandelism or theft may not be covered.

If you must leave your home vacant, notify your insurance broker immediately.  Make sure the home looks occupied by keeping the property maintained, ie. cut the grass/shovel snow, have mail picked up.  Keep the security alarm, if you have one, on and turn off the water, (to prevent any possible water escape damage).

Other options would be to consider renting out your home or hiring a housesitter.

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Real Estate in Saskatoon is doing well at 440 units sold last month, an increase of 28%, compared to 345 units sold in July of 2008.

Looking at listings numbers, we can see the market is continuing to correct.  In July, 594 homes were put on the market through MLS, compared to 669 in June.  These numbers are down from 2008, when 905 homes were listed in June and 832 listed in July of 2008.  If you were looking to buy a home at the end of July, there were 1,291 units to choose from, compared to 1,439 at the end of June.

The average selling price of a residential unit in Saskatoon increased to $283,619 in July from $279,867 in June of this year. This is mostly due to an increase in sales in the over $500,000 range and fewer sales of homes under $125,000

General confidence in the local economy is translating into home purchases.  Excellent interest rates and  a strong job market are both contributing favorably to the housing market.  I expect buyer activity to remain consistent for the remainder of the third quarter.

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