According to USA Today, Saskatoon is still one of the most affordable places in the world to own a family home.
USA Today published the results of a study on average home sales price in 2007 for a 2,200 square foot single-family dwelling with 4 bedrooms, 2 1/2 baths and 2 car garage for select international markets.
The study was done in U.S. dollars with conversions done on oanda.com as of Sept. 7th.
Even though prices have risen significantly in Saskatoon since the end of the year, (probably at least $100,000 above the published report price) it still remains one of the most economical cities in the world to own a family home. Here is how it compares with some other international cities.
Dublin Ireland $2,133,891
Rome Italy $1,793,838
Paris France $1,677,878
Madrid Spain $1,135,351
Sydney Australia $874,553
Toronto Canada $862,674
Tokyo Japan $780,346
Beijing China $709,687
San Pedro Belize $697,500
Amsterdam Netherlands $537,148
Calgary Canada $513,250
Warsaw Poland $479,000
Istanbul Turkey $417,760
Cairo Egypt $328,719
Mexico City Mexico $277,213
Aruba Aruba $236,250
Saskatoon Canada $211,666
Panama City Panama $201,333
Granada Nicaragua $190,000
While today's "real" prices would probably put Saskatoon a little higher on the list than it is right now - maybe between Cairo & Istanbul, it does put into perspective how good we have it here, and how much potential room there is to grow for housing prices in general in this part of the world.
And it makes it easier to understand how owning your own home is something that many families in other parts of the world can only dream of.
You can see the full report by clicking here.
12 comments:
Wow.. you will really post anything at this point that helps paint the rosey picture of this overinflated market.
Are you kidding? I know the article says that you could buy a house between 375,000-430,000 with those characteristics (the statistics are believed to be outdated and the author admits to that) but I think most people would be hard priced to find that. Many houses don't even have four bedrooms anymore and if they do, they are priced on the higher end. I currently live in a 3 bedroom, two storey, 1650 square feet developed and my house would sell for close to 500,000 and doesn't have the square footage or bedrooms mentioned.
You find it for me and I'll buy it.
Are you kidding me is right! Most houses are not that size and most homes dont have 4 bedrooms, why would you even bother posting that nonsense- are you grasping or what?
Saskatoon Canada $211,666?
Why aren't there any articles that don't cite year old data (were houses even that cheap a year ago) to classify Saskatoon as affordable? The average (not 2200 sq ft) is somewhere above 300,000 and that list is just some random cities world wide. It ignores that we have passed a lot of places in terms of real estate prices, doesn't have Edmonton, Regina, Winnipeg etc... all cheaper on the list. And now evidence that our inflated prices are backed by a mediocre for Canada, worst in the West Economy.
http://www.teamfisher.com/blogs/norm_fisher/archive/2008/04/30/saskatchewan-economy-underperforms-on-expectations.aspx
And Sept 7!? of what year? 2003? A 2200 sq ft 4 bedroom? That house would likely clear half a million no problem. Given the outdatedness and obviously wrong study if it isn't years outdated why post it at all? A recent Royale LePage study pegs the average house at about 300,000 (not 2200 sq ft, 4 bedroom I bet).
Yeah, the average may be up 100,000
but 2200 sq ft? for 311,000? You gotta be kidding me. And how does that make us affordable? It's a random list of places!
340 bungalow to 395 2 story, assuming 2200 sq ft is even above that:
http://www.royallepage.ca/CMSTemplates/AboutUs/Company/CompanyTemplate.aspx?id=1746
Okay, I've been taking a bit of a beating for posting this article, and I agree that the Saskatoon price posted in the USA Today study isn't anywhere near reality in Saskatoon today.
I also agree that it's very difficult to find a 4 bedroom, 2,200 square foot house in Saskatoon, or probably anywhere else.
In these parts of the world, and I suspect many others, the typical house has 3 bedrooms, and is more like 1,000 or 1,100 square feet.
But I wonder if the survey wasn't looking at total living space, and total number of bedrooms...if it was, then your typical 3 & 1 bedroom bungalow or bi-level would fit into the survey, and it would make the prices make a little bit more sense.
In April, the average asking price of properties advertised for sale in Saskatoon was $335,899. That's a lot higher than it was 18 months ago, but it's still far less than what it is in many other cities in Canada, and as the USA Today article illustrates, it is nowhere near what most people outside of North America are paying.
Is the Saskatoon market over-inflated? Only time will tell for sure, but I think the prices here reflect the confidence that people living outside the province have in our resource-rich economy, and our quality of life, which is second to none. If only we had that much confidence in ourselves...
Dale
www.saskhouses.com
Confidence in Western Canada's slowest growing economy in both 2006 and 2007?!@
http://www.statcan.ca/Daily/English/080428/d080428a.htm
Still a useless list, as it leaves out the hundreds of Canadian cities cheaper than Saskatoon and based on very outdated (if 2200 sq ft for 211,000 (maybe 7 or 8 year old?)) housing prices in Saskatoon.
Again, cheaper to live in Regina, Winnipeg, Edmonton, Red Deer etc... and all of the above (except maybe Winnipeg) have substantially higher average incomes, with Regina similar size/commute and Red Deer smaller/close to nice lake/mountains/big cities 1.5 hours each way
At least someone recognizes an overinflated market. Once the investment dollars start leaving Saskatoon, prices will start dropping like a rock. It is too bad that greedy BC and Alberta investors helped the tremendous ascent of prices in Saskatoon at the expense of many first time buyers that were convinced they need to buy now or would never be able to afford a home.
If you haven't read it already, I would recommend the book "Greater Fool" by Garth Turner. Real eye opener.
Having been from Saskatchewan and now living in Alberta, I considered moving back to Saskatoon as did many of my friends. I even had a job offer - for $10K/yr less than I make now. The house price differential between Edmonton and Saskatoon would need to be great enough for me to become mortgage free to make that move. The gap closed quickly and I stayed put.
Bubble will burst and once buyers smell the prices coming down they will sit and wait, putting further pressure on prices.
Happened in Edmonton, Calgary and now it will play out in Saskatoon. First time buyers aren't phased by massive mortgages - but let's hope they are locking in for long term rates because inflation is picking up which means only a short amount of time before Bank of Canada must increase interest rates.
Hang on for a wild ride....
What a litany of whining and complaining! Outside investment is needed in any market, do any of you have enough money to develop apartment buildings or townhouses? Who is buying/living in the houses that are springing up like mushrooms all over the city, not just in the new areas? The nameless, faceless 'greedy investors' sure aren't. Constant (right or wrong, I have no vested interest in it either way) condo conversions are sold as fast as they can be done. Actual people live in all the new construction. Developers aren't building houses just to let them sit. Lately there has been an increase in the listings available, but a large percentage of those are people that are finally getting to move into the new house they contracted to build over a year ago. The result of this will undoubtedly be a welcome drop in average/cumulative sale price, which the boohoos will jump on as proof that the sky is falling. Less than a year ago, I purchased a 2200sqft two storey/4 bedroom/double garage/wedge lot/RV parking house for 370K, in Lakeview, so in my case, the numbers aren't incorrect.
Current and future developments will provide drive for sustainability, if not further increases. A couple of good years for the farmers will provide the opportunity for another wave of 50/60 year old farmers to exit on a high note (check out realized sale prices for farm land lately), and if there is anything real behind the fearmongering media reports, the ag industry is headed for a golden age. The more than 5 billion in potash mine expansion, all announced before the huge price increases, will contribute hundreds of high paying jobs to the Saskatoon area. BHP (one of the world's largest mining companies) is exploring a 2.5 billion greenfield mine near Lanigan. The uranium/nuclear industry (again, not here to debate the merits of such) is experiencing a resurgence with new and existing mines ramping up. The local service industry for these mines is huge, and now has massive competition for said services from Alberta (FT Mac) The company I work for does millions of dollars in labour for the tarsands companies. That money all stays and gets spent here. The elephant in the room is the so far glacial progression to Saskatchewan being home to the largest diamond district in the world, which has been two decades in the making. Recent developments include the huge Bakken oil formation, oil sands exploration/development, massive land staking for oil/coal/minerals (April's mineral rights/staking sales eclipsed last years total sales!), all of which have yet to make their presence felt. I submit that we've only seen the first wave of a decade of expansion, and all the whining in the world is not going to stop it.
Good to see anonymous is banking on long term farming stability. When have farmers not been struck by drought or low prices? They are not a good reason to say our economy looks good long term. And I've been hearing potash is headed for a decline too with rising inventories. It's not fear mongering, it's people saying a doubling of house prices to more than a lot of higher paying and nicer cities was not justified by one year of wage and average economic growth.
"Saskatoon - most affordable family homes in the world: USA Today"
Okay you can't be blamed for the outdated data - but the above quote is YOUR link in news. It implies Saskatoon is the most affordable housing in the world!
First, even in the list, 2 places are cheaper. The out dated, limited article doesn't even support your claims.
Second, the list is short, Regina, which has higher wages and lower housing prices is cheaper.
Third, a lot of rural housing is WAY cheaper.
Fourth, Red Deer, wages higher, housing cheaper.
Please CHANGE TITLE IN NEWS LINK
maybe, "Saskatoon - USA Today Article on Housing Affordability"
Your current link/title is just plain deceptive and wrong.
Typical Saskhouses boosterism.
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