Despite also being hit by the world wide recession, Saskatchewan's economy is still leading the country. Although RBC has decreased its economic forecast for the province of Saskatchewan from 6 months ago, our small growth in GDP is still enough to lead the country.
In December, RBC was estimating a 2.8% growth in 2009, however now the bank's economists are predicting a 0.7% growth.
Following behind Saskatchewan is Manitoba at 0.5% and Nova Scotia at 0.2%, while all of the other provinces are in a negative.
Despite being hurt by the US Economic Crisis, Saskatchewan's economy is still faring well against the other Canadian provinces.
On average, Canada will see a decline by 2.4% but will see a recovery of 2.5% in 2010, according to assistant to Chief Economist Paul Ferley.
But Saskatchewan will not be the leader in 2010, it is expected that Newfoundland and Labrador will lead the country in 2010 with a growth of 3%. Saskatchewan and Mantiboa will tie with a 2.8% growth.
Saskatchewan's economy will continue to grow with the help of commodity prices, but real estate in Saskatchewan will remain a bit of a concern. After our huge increase in 2007 we saw a drop in 2008/2009. The high prices in 2007 caused a fall in demand, which has brought house prices in Saskatchewan down. Housing starts in Saskatoon will also be about 50% of what they were in 2008. The slower residential real estate investments in Saskatoon will limit our economic rebound in 2010. That doesn't mean that the Saskatoon real estate market will continue to suffer as we are already seeing things bounc back, but we won't see a huge increase again in the near future. We hope to see Saskatoon maintain a slow but steady increase in the years to come.
Oil also looks good and it looks like oil prices will be going up again which also impacts the Saskatchewan economy, but it also means higher gas prices.
Overall, it is still a great time to buy a house in Saskatoon.