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Saskatoon Real Estate Market in 2018

Saskatoon Real Estate Market in 2018

In September 2017, Real Estate Investment Network released a report according to which Saskatoon real estate market should surpass that of other western Canadian cities in upcoming years.

“Understand that if North Korea fires off some missiles and things, all bets are off,” said Don Campbell, who founded this group.

“But Saskatoon, and Saskatchewan as a whole, has food, fuel, fertilizer and farmers. Those four Fs definitely are going to be needed in the future,” he said during a telephone interview from Vancouver.

This organization claims to be a real estate coaching company which also sells annual memberships to investors and entrepreneurs.

Saskatoon Real Estate Market in 2018

Future of Saskatoon has never been over viewed by anyone in such a hopeful manner, with the city’s unemployment rate now pegged at 8.4 per cent.

Robin Wiebe is a senior economist with the Conference Board of Canada, he said,”Saskatoon is coming off two years where its economy contracted and that’s because of oil but also weakness in other commodity prices, such as uranium and potash.”

Forecasting “decent but unspectacular”, he said that Saskatoon can expect to see gross domestic product growth of up to 3.5 per cent next year, growth rates for the city of two per cent per year after that.

Wiebe narrated housing demand in the city as “relatively slack,” with an oversupply of newly built condominiums sitting vacant.

“Saskatoon’s economy may have turned, or it may be in the process of turning, but if it were my money I wouldn’t be investing in apartments in Saskatoon right now,” said Wiebe.

He noted buyers today face higher interest rates, with federal regulators proposing lenders adopt tougher measures to weed out those who cannot pay should rates climb further.

“Forecasting a turning point is fiendishly difficult,” Wiebe said.

For his part, Campbell suggested potential investors to avoid buying until the right property hits the market.

“The next 18 months probably aren’t going to be pretty in the housing market anywhere in Saskatchewan,” said Campbell. “But the stability and the diversity and the age of the population are all indicating it’s going to be one of the outperformers.”

According to Campbell’s organization, Saskatoon is opposing the other Western Canadian cities market trends with a lower-than-average GDP decrease of just one per cent in 2016.

Campbell said, services-producing sector produces 60 per cent of the provincial GDP now, which is a shift from regular areas of growth.

“If you are going to be buying and you are going to be parking some capital in there, now is the time to be patient and wait for the right property, rather than just go pick any property like you could five years ago,” Campbell said.

In 2017, Saskatchewan saw nine per cent growth in exports, which shows an increase in employment-based economic growth, his report said. 

According to the prediction of Royal Bank of Canada officials, real GDP growth of Saskatchewan will be 1.8 per cent in 2017 while 2.3 per cent in 2018.



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