The leaderpost has an article comparing Saskatchewan houses to Saskatoon's with comparable prices.
Photos: Comparing Sask. real estate prices with Saskatoon's
Money just doesn't go as far as it used to in Saskatoon's real estate market. For many on the lower end, a starter home is no longer affordable. See what you can get for the money in Saskatoon compared to other communities in Saskatchewan
With a Saskatoon average household income of $70,000, this house would cost 4.7 times income. And it looks like this house needs some work. At least it is in a decent neighborhood. In Vancouver, this house would go for at least a cool million.
As Craig Ferguson would say, "I know!"
ReplyDeleteHonestly, not that my wife would even look at this place, but I wouldn't pay more than a hundred grand for this house.
It looks like a nice little money pit.
thats the problem! Women are driving the housing bubble, because they got to have the expensive house or its not good.
ReplyDeleteBull. I'm 200% certified woman and would be perfectly happy in a 800 sq ft apartment with a decently sized balcony for my BBQ. My man is the one who "must" have the 2-door garage, huge backyard and all the dirt bikes and hot tubs and kayaks he can fill it with.
ReplyDeleteThat house goes for $1.1M in Vancouver and our median salary is $40,000. I WISH I had your problem.
Numbers and photo's can be twisted and turned depending on what the author would like us to believe. Yes this is an actual listing in Saskatoon but you can also get some very nice (much much newer) properties for that price point as well. Your article is slighted.
ReplyDeleteThis article about this home was actually in the Leaderpost noted as a starter home. I agree that there are some cookie cutter two storey homes on a very small lot with a basement " open for development" for about that price.
ReplyDeleteLove your blog, thank you, lots of good ideas and links here.
ReplyDeleteThat house would probably not get the asking price because of its condition and Clarence is a busy street. They are hoping its proximity to the U of S and Broadway make it desirable. You can still get a decent 3 bedroom house in Saskatoon in the low 200's but it will be out in the suburbs such as Confederation Park. I know of some nice renovated modest houses in Nutana that have sold in the low 200's in 2010. Price to income ratio of 3.2 - not bad.
What is the definition of a bubble? Saskatoon RE prices really jumped in 2007, bubbled over in 2008 and then partly corrected downwards. Since the correction after 2008 the line has been fairly sideways - slowly coming up. The 2004-2011 chart does not look like a bubble to me. I would not be surprised to see the average price fall temporarily to the mid 200's. For my definition of a bubble though the prices would now have to decline all the way to 2006 prices. No way that will happen. This province in 2011 is a different place compared to 2006. I agree that housing can be a poor "investment" but if you think Saskatoon average housing prices will melt to 2006 levels in the next 10 years I will bet you real money they won't.
Click on my name to see the 2004-2011 Saskatoon average housing price chart 2004-2011 (I have been charting the SRAR statistics since 2004).
The definition of a housing bubble has been defined on this blog many times. Saskatoon fits it quite nicely.
ReplyDeleteIf the average house price hit the mid 200's like you say, that would classify as a housing bust.
A housing bust is by some classified as a loss of 10%, others say 15%. I believe Saskatoon will hit that and possibly more but I do not believe we will see 2006 prices, but I have been wrong before :)
Great job on the chart.
Thanks for stopping by and reading.