Average Home Price in Saskatoon Up 57% in One Year

Written by Marc on July 7th, 2007

Numbers came out this week regarding the average home price in Saskatoon, Saskatchewan.  For those of you that have not been reading the blog up to this point, Saskatoon is located in Canada and is currently experiencing a housing boom.  The average house price for a house in Saskatoon in June was $252,433 CDN up from the price in June 2006 of $160,547 CDN.

A large reason for this increase is both the number of frustrated potential home buyers bidding irrational prices just to get property and the influx of investors from outside the city.  An example of these external investors are those investors from Alberta who have entered the market due to the high prices found in the Alberta market.  I have a colleague that we had helped purchase an income property in Saskatoon.  She is investing here because her house has almost tripled since she bought it just a few years ago and she wants to put her new equity to use.

Just remember these numbers are average numbers, and not necessarily indicative of every house price on the market.  In fact, in the month of June I saw a listing for a one bedroom home for just $30,000.  Just with any other market, you can find deals, though they may be a little harder to find.  For those of you who are investing in real estate, remember to invest based on the numbers, not just on the bidding frenzy.  I will cover some useful tips to follow in a market where the buyer usually ends up in a bidding war on a later post.

Read more articles on Real Estate Investing and Saskatoon Real Estate.

3 Responses to “Average Home Price in Saskatoon Up 57% in One Year”

  1. I am an Alberta real estate investor, and definitely the housing market has become extremely expensive. In Edmonton, you could buy a $140,000 home in early 2005 and it would be worth about $420,000 in 2007 – triple – depending on the location. Naturally, there are many investors turning to other promising markets, Saskatoon being one of the hotter ones at this time.

    However, Edmonton and Calgary are still excellent markets for long-term investment even though the market is cooling and most bidding wars have subsided. Large projects like upgraders and other facilities are creating jobs for years to come. There aren’t enough people to fill the labor shortage, and these projects are 10 or 20 year term committments. Rent increases are continually on the rise due to the shorting in housing.

    For beginner investors, you might want to try a less expensive market, like Saskatoon, where there is lots of gain potential at this time.

    Yvette Chau

  2. The Saskatoon real estate market has seen the largest growth out of any market in Canada this past year. Our market still continues to be hot with over a 2 year waiting time for a new home to be built. The Saskatchewan economy is booming right now providing jobs and opportunities for people. If you are looking for an excellent investment opportunity the Saskatoon market is here!

    Kari Calder

  3. Gosh, haven’t you folks been following what’s been going on here in the lower 48? I think you have a bubble that must burst at some point. Avoid leverage!

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