|
Saskatoon house prices continue to get more crazy. I think it's pretty clear that a couple of years ago they were typically underpriced, but today they're definitely beyond rational levels based on incomes and construction costs.
In this area a house of the same design as ours but with no garage, landscaping or appliances sold with an asking price nearly 10% higher than we paid six months ago (obviously they might not have got that much, but it wasn't on the market for long so I don't think they were desperate to sell), and another is for sale with an asking price of nearly 20% higher than we paid. Add on the cost of finishing them and you're looking at a 20-30% rise in prices in six months, if the houses actually sell for what they're asking.
Sales seemed to stop in December/January, but suddenly appear to have started up again with several houses that had been on the market for 2-3 months recently sold. On the plus side it's nice to know we're not losing money on our house, but on the down side a house price bubble doesn't help anyone other than construction companies and property speculators. |
|
|
