The Real Estate market in Saskatoon is in an adjustment period. This period has been in effect since late in the first quarter on 2008. An adjustment market follows any market that sees a rapid increase in market value over a short period of time. Recent history showed a similar adjustment on the cost of oil/barrel etc. With the Real Estate market in Saskatoon we saw the value of homes almost double over a 13-14 month period. What happened was a correction in the market because Saskatoon was under valued, that started the rapid increase but what followed was an unexpected and rapid increase of pricing. Stopping that type of market is like trying to stop a moving freight train with a feather. With the price increasing so rapidly in a short time frame it is only natural for the pricing to over shoot affordability and therefore an adjustment period follows. How long the adjustment period will last is unknown but I think that time is very near and we should start to see a stable market soon and return to our normal market in the 4th quarter or first quarter of 2009.
So if you are looking for an investment property or a new home, now is the time because we are looking at the bottom of the market adjustment and some motivate sellers to sell.