Saskatoon Real Estate up 25% over one year ago

Written by Marc on March 29th, 2007

Statistics released recently show that the average listing price of a house on the real estate market using the multiple listing service (on the web: mls.ca) is up 25% over last year.  That makes Saskatoon the third highest gain in Canada, behind both Edmonton and Calgary.

To give you an idea of what this would mean as a return, consider this example:

Last February, you bought a home for $200,000 CDN, putting down a 25% down payment (that would be $50,000).  In March of 2007, you turn around and sell the home for a 25% profit on your purchase price (that would be $250.000.)  You would make $50,000 CDN profit (not included fees, taxes, etc.) giving you a whopping 100% cash on cash return. 

There is no sign of the market slowing down this year, and there is predicted shortages in the available homes in the area.  In fact, most properties end up in a bidding war where the seller usually gets a price larger than their asking price.  For those of you interested in flipping properties, consider Saskatoon as the location of your next real estate investment.

Read more articles on Business Opportunities and Real Estate Investing.

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