Who does one believe? The Government? The Newspaper? The Local Real Estate Association?
Yesterday September 25, I woke up listening to our Mayor Don Atchison talking on Newstalk 650 about all the good things happening in Saskatoon and how Saskatoon has the #1 economy in Canada (Listen). Then I grab the Star Phoenix and read an article that talks about how the new mortgage rules are cooling the Real Estate market (Read).
I find it interesting that views can vary so much. Until you take a closer look at the Star Phoenix ad and you read things like "August shows a widespread decline in sales of existing homes, with 21 of 28 metropolitan markets" and "listings fell in 17 of the 28 markets, an indication that owners were reluctant to place their homes for sale due to the soft conditions". My question is what 28 markets were in the survey and which 21 are seeing the cool down.
I have read articles like this before and many of them are base out of the east from centers like Toronto and Windsor or out west in Vancouver. Those markets do see large spikes and declines on a regular bases and like in the past when those markets were booming and the market here in Saskatoon was not, the two markets are different in many ways and should not be compared.
Here are the fact about the market in Saskatoon as of the end of August 2012 (SRAR Monthly Report):
MLS® Residential Area 1-5 Dollar Volume $864,474,810 (2011) $1,007,990,238 (2012) up 17%YTD
MLS® Residential Area 1-5 Unit Listings 5,162 (2011) 5,277 (2012) up 2% YTD
MLS® Residential Area 1-5 Unit Sales 2816 (2011) 3049 (2012) up 8% YTD
If you look at the Area 1 to 5 (City of Saskatoon) Dollar Volume, Unit Listings and Unit Sales all numbers are up year to date. What we are currently seeing is a stable market and it looks like we are going to remain like that for a while.
To conclude, anytime to hear something about the Real Estate market, pay close attention to the source and area to which they are discussing and don't believe just because it is happening in one part of the country or world that it is happening here.