Monday, December 3, 2012

Saskatoon Housing Bubble

I read a great article this past summer in Canadian Moneysaver while I was at the library.  The article was about the impending real estate bubble burst in Canada.  The second of four in the series is found here (well worth keeping it).  I decided to analyse Saskatoon data today.  It was harder than I thought to find data.  I don't know where this blog gets its data.  Using the following sources:
  • SRAR Average house prices from 2001-2011
  • CHMC Saskatoon rental prices 1992-2011
 I plotted this graph for 2001-2011 (download the spreadsheet here):



The divergence between rental costs and home prices is not sustainable and indicates a real estate bubble.  Best to wait for the prices to burst before getting into this market!

I was trying to get more data, but couldn't find it.  Remax had a RE/MAX 25 Years of Real Estate Report published in January 2007, but it is no longer available!  Too bad.

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