We are lucky to be in Saskatchewan where homeownership is still attainable. Other provinces in our country such as British Columbia and Ontario are not as lucky! Don’t believe us? The average house price in Saskatoon is $$330,000.00. Vancouver MLS® stats indicate an average house price in Vancouver is $1,157,185. And last but not least, Toronto MLS® stats indicate an average house price of $941,261.
Why should you care about home prices across Canada? Well, a lot of people leave Saskatchewan and head to Alberta, Ontario and B.C. If these expats come back, this could affect our home prices.
With the Liberal’s being elected into power, Trudeau has promised to continue to expand assistance programs for first time buyers.
The Liberal’s have also proposed to continue to raise the value of homes that qualify for first-time buyers to $789,000 from $505,000. In Saskatoon, that’s a huge home. The problem will be coming up with a down payment for a home that’s $700K if this is your first home. That means, you need at least $157,800 for a downpayment.
What else is going to happen with real estate?
Foreign Tax and The Election
We are sure most of you have heard about the house in Briarwood that sat empty for years and is now full of mold and scheduled for demolition. This is not the only house in Saskatoon that sits empty and is owned by someone from overseas. This causes problems for our communities.\
One of the problems with foreigner buyers is the extent of problems it causes for local people who want to own and rent homes. If we have an influx of foreign buyers in Saskatoon a few things will happen. Home prices will increase. Supply will most likely drop while demand increases which makes housing unattainable for most people.
The other problem, which we touched upon briefly, is about the home in Briarwood. When homes are left empty and no one is taking care of them, they become an eyesore. Neighbours have to pitch in and help or this affects the sale of your home.
Homes left empty can hurt your curb appeal. There are several stories of homes that have been rented out to: Grow Ops, homes as drug ops, etc. Having someone who rents to people from overseas ads a layer of complication to proceedings.
Last but not least, having a community of homes that are sold to foreign buyers, but sits empty, impacts that community. It means less people in the community supporting local businesses. If the neighbourhood is aging and there are several homes that are empty – this hurts school numbers and at times forces closures.
There are a list of problems with foreign buyers, we are glad this is a problem that will continue to be addressed.
What’s Next
Real estate associations representing nearly three-quarters of the realtors in Canada called on federal parties to commit to easing mortgage rules.
People are concerned that too much regulation plays a big role in making home ownership unaffordable across the country, while the CEO of the Canada Mortgage and Housing Corp. has urged the federal government to keep the rules in place to protect the economy from tragic consequences as debt levels soar.
If you have questions about your home or how the government plans to help you if you are a new buyer, we would love to answer your questions. If you need help buying or selling your home, we are always here to help.
Gregg Bamford and Ryan Bamford
