Saskatchewan economy sets records, attracts investments in 2011

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Saskatchewan’s economy had a banner year in 2011 and the New Year is projected to be even better. The province set records for investment and population growth in 2011 and two independent forecasters are predicting that Saskatchewan will continue to lead Canada and set records in 2012.

“The statistics are good, but even better is the fact that people and investors recognize the real growth yet to come and know that Saskatchewan is becoming the leading place to do business in Canada,” Enterprise Minister Jeremy Harrison said. “This year we have had many new businesses start in the province, businesses move from other locations and existing businesses expanding in all corners of the province.”

Two major forecasters, RBC and the Conference Board of Canada have predicted that Saskatchewan will lead economic growth this year at 4.5 per cent and 5.1 per cent respectively. An average of seven forecasters predict Saskatchewan will have the second fastest growing economy in Canada in 2011. And while other jurisdictions are seeing their credit ratings slide, Saskatchewan received a boost to AAA by the international credit rating firm of Standard & Poor’s.

“The progress we have made this year is great, but what is more important is the potential for future investment capital, with about $50 billion in the next 20 years in the works for the mining industry,” Harrison said. “There are many long term projects, most of them in potash, that look particularly bright.”

Private and public investment is expected to reach $17 billion in 2011, an all-time record for the province. Population levels are growing at rates the province has not experienced for decades and hit record levels in 2011, with 1,063,535 people now living in Saskatchewan.

Saskatchewan is ranked number one in the nation in the following areas:

  • Residential construction in the first nine months of 2011 increased 25.1 per cent over the same period in 2010;
  • Building permit values in the first 10 months of 2011 increased by 27.2 per cent over the same period last year to $2.2 billion;
  • In the first 11 months of 2011, urban housing starts grew by 25.7 per cent;
  • Exports set a new record in the first 10 months of 2011, up by 25.1 per cent over the first 10 months of 2010;
  • In the first ten months of 2011, retail sales were up 8.1 per cent to $13.3 billion, compared to the same period in 2010; and
  • Wholesale trade in the first ten months of 2011 increased by 23.1 per cent over the first ten months of 2010.

Source- http://prosperitysaskatchewan.wordpress.com

Sunny jobs outlook forecast

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Regina and Saskatoon were among 14 Canadian metropolitan areas forecast by the Conference Board of Canada to see improved job markets in the coming months.

Both of Saskatchewan’s major cities are reporting extremely tight labour markets, with one job posting per unemployed person, the Conference Board said Wednesday. And both are seeing an increase in the number of online job postings compared with the base year of 2007. In both cities, the board’s Metro Help-wanted Index is roughly 150 per cent above the 2007 level.

Both are positive indicators of strong, healthy job markets. “A higher Help-wanted Index … means that the number of job ads is increasing, and therefore the labour market is strengthening. On the other hand, a lower indicator of labour market tightness … means that the labour market is tightening, and therefore the chances of finding a job are higher.”

The Ottawa think-tank said near-term prospects — as measured in online job listings — are up in 14 census metropolitan areas, stable in six and down in the six remaining cities covered in the December survey. The report follows job declines in Canada in three of the past four months. October saw 54,000 jobs disappear, while another 18,600 were lost in November.

Prospects continue to be best in the West, thanks to strong commodity prices, but are more mixed in Ontario and Quebec. The outlook for the Atlantic Canadian census metropolitan areas (CMAS) is also positive, the board said.

The report from the Conference Board is in line with consensus of economists for Friday’s employment numbers.

After shedding more than 72,000 jobs in the first two months of the fourth quarter, Canada’s labour market is poised to rebound in December with the addition of 20,000 positions, according to Bloomberg estimates.

Source- prosperitysaskatchewan.wordpress.com

Saskatoon smashes building permit records

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“THAT IS QUITE SIGNIFICANT.” BOB BARAN

It was a record-breaking year for building permits issued by the city in 2011.

The city issued 4,651 building permits, eclipsing the previous record of 4,523 set in 1987.

“That is quite significant,” said Bob Baran, the city’s building standards branch manager. “Everything seemed to be a little bit more this year.”

The building permits were 551 more than 2010s figures and the value of those 2011 construction projects was $936 million compared to $666 million in 2010.

Industrial permits were up 12 per cent. Commercial permits were up 13 per cent. Single family dwellings permits were 1,145 in 2011 compared to 1,054 in 2010.

“When you look at the permits that were issued, increases were seen right across the board,” Baran said, adding 2010 was also an above average year.

He noted between 2002-09 the city averaged just 700 per single family permits per year.

For apartments, there were permits issued for 1,099 residential units, compared to 856 in 2010.

Total residential permits were 2,835 in 2011 compared to 2,541 in 2010.

“And 2012 looks like it might be very similar to this past year,” he said.

In the coming year, the city is planning to develop 732 single family lots, which doesn’t include any lots that private developers are planning.

Baran said the city is going to invest $58.3 million into direct services to deliver 732 single family lots and another 100 acres of multifamily and industrial land.

Major projects on the horizon that may start in 2012 are the children’s hospital, the police station and possibly something at River Landing.

“It just depends on the timing of where these projects are in terms of when we will get them in the office here,” Baran said.

The Building Standards Branch is responsible for approving building and plumbing permits and related inspection programs.

Source – http://prosperitysaskatchewan.wordpress.com

Saskatchewan building permits increase over 4x’s national average

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Value of building permits, by province and territory – Seasonally adjusted
November 2010 September 2011 October 2011r November 2011p October to November 2011 November 2010 to November 2011
$ millions % change
Canada 5,508.4 5,670.6 6,326.0 6,097.3 -3.6 10.7
Residential 3,129.5 3,606.9 3,603.8 3,854.1 6.9 23.2
Non-residential 2,378.9 2,063.7 2,722.2 2,243.2 -17.6 -5.7
Newfoundland and Labrador 91.3 74.9 123.9 74.7 -39.8 -18.3
Residential 58.3 56.5 59.9 63.4 5.9 8.7
Non-residential 33.0 18.4 64.1 11.3 -82.4 -65.9
Prince Edward Island 22.2 20.1 19.2 22.1 15.1 -0.6
Residential 13.5 12.5 10.9 11.2 2.9 -17.5
Non-residential 8.7 7.7 8.3 10.9 31.1 25.6
Nova Scotia 126.4 134.0 81.4 125.2 53.8 -1.0
Residential 84.7 82.8 58.4 89.9 54.1 6.2
Non-residential 41.7 51.2 23.0 35.2 53.3 -15.5
New Brunswick 83.5 90.1 78.3 72.6 -7.3 -13.1
Residential 46.5 46.8 43.6 46.2 6.0 -0.6
Non-residential 37.1 43.3 34.7 26.4 -24.0 -28.8
Quebec 1,293.5 1,203.0 1,199.3 1,187.7 -1.0 -8.2
Residential 751.7 800.9 788.7 800.4 1.5 6.5
Non-residential 541.8 402.1 410.6 387.3 -5.7 -28.5
Ontario 2,039.5 2,005.1 2,666.7 2,315.7 -13.2 13.5
Residential 1,140.4 1,284.4 1,302.4 1,392.3 6.9 22.1
Non-residential 899.1 720.7 1,364.2 923.4 -32.3 2.7
Manitoba 146.5 147.0 182.3 214.0 17.4 46.1
Residential 83.9 90.9 99.2 111.5 12.3 32.9
Non-residential 62.6 56.1 83.0 102.6 23.5 63.9
Saskatchewan 172.1 221.7 279.1 249.8 -10.5 45.2
Residential 116.4 99.5 151.0 128.4 -15.0 10.3
Non-residential 55.7 122.2 128.1 121.4 -5.2 118.0
Alberta 866.7 1,092.6 965.0 889.2 -7.9 2.6
Residential 445.4 641.4 592.7 563.3 -5.0 26.5
Non-residential 421.3 451.2 372.3 325.9 -12.5 -22.7
British Columbia 654.5 665.7 707.5 930.4 31.5 42.1
Residential 384.7 482.0 489.2 633.5 29.5 64.7
Non-residential 269.8 183.8 218.3 296.8 36.0 10.0
Yukon 11.1 11.1 19.4 4.2 -78.3 -62.0
Residential 3.6 5.8 4.2 3.0 -29.2 -17.8
Non-residential 7.5 5.3 15.2 1.3 -91.8 -83.3
Northwest Territories 1.0 1.5 1.0 1.6 58.7 62.7
Residential 0.4 0.4 0.9 1.0 17.9 172.4
Non-residential 0.6 1.0 0.1 0.6 306.2 -4.7
Nunavut 0.0 3.9 3.0 10.2 233.4 …
Residential 0.0 3.0 2.9 10.0 247.3 …
Non-residential 0.0 1.0 0.2 0.2 -2.9 …

Alberta And Saskatchewan Cities To Lead Canadian Metropolitan Areas In Economic Growth In 2012

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Saskatoon, Calgary, Edmonton and Regina will benefit from solid global demand for their local resources to post the strongest economic growth among Canadian cities in 2012. The Metropolitan Outlook-Winter 2012 released today, is The Conference Board of Canada’s once-a-year simultaneous analysis of 27 Canadian census metropolitan areas (CMAs).
“In spite of global economic turmoil, high prices for agricultural products, minerals and oil are likely to continue. Canada’s prairie cities will reap the benefits of this global demand for commodities,” said Mario Lefebvre, Director, Centre for Municipal Studies.
“The outlook is not as promising for cities in central and eastern Canada. The uncertain global economy, a continued slow recovery in the manufacturing sector and the windup of fiscal stimulus introduced by governments in recent years will http://www.meadowlarkestates.ca/wp-admin/post-new.phphamper overall economic growth.”
Resource Boom Boosts Prairie Cities Saskatoon is forecast to lead the country in economic growth this year, but the four per cent increase in real gross domestic product (GDP) forecast in this edition of the Metropolitan Outlook is actually a slowdown from the estimated 4.6 per cent gain in 2011. The province’s booming primary sector is supporting gains in all industries, and employment is expected to grow by almost five per cent this year.
Continued strong growth in Alberta’s energy sector and solid domestic demand will boost Calgary’s real GDP by 3.6 per cent in 2012. In 2013, the Calgary CMA is forecast to lead all Canadian cities with growth of 4.9 per cent.
The Edmonton economy created almost 40,000 jobs last year alone – a six per cent increase – which will help to support domestic demand entering 2012. Strong energy activity will also contribute to real GDP growth of 3.4 per cent in 2012.
Regina’s economy grew by more than five per cent in 2011, second only to St. John’s. Growth will ease to 2.9 per cent in 2012, which ranks Regina fourth among Canadian CMAs. Strong employment growth is drawing migrants to the city, boding well for housing demand and consumer spending.
Winnipeg is expected to rank in the top half of Canadian CMAs for economic growth in 2012. Winnipeg’s manufacturing sector is forecast to post its best performance since 2007, which will help lift overall economic growth to 2.4 per cent in 2012.
Global Uncertainty Weighs Heavily on Ontario CMAs Despite the slow U.S. recovery and the strong Canadian dollar, Toronto and Oshawa’s manufacturing sectors are expected to post decent gains this year. Nevertheless, manufacturing output in both cities will remain well below peak levels. In addition, construction activity in both CMAs will be dampened by the winding down of public infrastructure spending.
Oshawa’s manufacturing sector will receive a boost from the start of production on a new General Motors model. All in all, Oshawa’s economy is expected to grow by 2.7 per cent in 2012.
Toronto’s economy is forecast to grow by a 2.6 per cent this year, a modest improvement on 2011. As world markets recover, the Toronto economy should improve by four per cent in 2013, with growth widespread across all sectors.
Belt-tightening by the federal government will have a noticeable effect on Ottawa–Gatineau’s 2012 outlook. Public administration employment fell by two per cent in 2011, and is forecast to decline by 3.6 per cent this year—a cumulative loss of 9,000 jobs over these two years. As result, real GDP growth is expected to come in at a modest 1.8 per cent in 2012, only a slight improvement over 2011.
Kitchener–Waterloo’s economy is expected to grow by 2.5 per cent in 2012. Although the region’s manufacturing sector is in transition, it is expected to post another year of steady growth. The CMA will also continue to benefit from sound population growth, which will support housing demand and consumer spending.
The $1.4 billion Windsor–Essex Parkway project will lift overall economic growth in the Windsor CMA to 2.5 per cent this year. In addition to double-digit growth in construction sector output, employment is forecast to increase by an average of 2.3 per cent in 2012 and 2013.
Growth in Hamilton’s manufacturing sector will be limited by the shaky global economy. Real GDP is expected to increase by two per cent in 2012, a slight increase from 2011.
London continues to face a slow recovery from the 2008-09 recession. Real GDP is forecast to increase by 1.7 per cent in 2012 (which is in itself an improvement over 2011), but this growth is still well below London’s long-term annual average of 2.5 per cent.
Weakness in the construction sector will limit Kingston’s economic growth to 1.5 per cent in 2012, the fourth year in the past five that the CMA’s real GDP will increase by less than two per cent.
A drop in construction output will restrict economic growth in St. Catharines–Niagara to 1.4 per cent in 2012.
In the Northern Ontario CMAs, moderate growth in the mining and construction sectors will result in GDP growth of two per cent in Sudbury this year. Thunder Bay’s real GDP is forecast to increase by 1.7 per cent in 2012, the highest growth rate in the CMA over the past 12 years.
Modest Growth Expected in Quebec Quebec City’s economy is expected to grow by 2.1 per cent in 2012, a modest acceleration in growth from last year’s estimated 1.9 per cent advance. After a strong performance in 2011, construction output growth will ease this year before accelerating in 2013 – thanks to the planned construction of a new arena.
Montréal’s economy will expand by two per cent in 2012, due in part to a third consecutive year of growth in the manufacturing sector. This will help offset an expected downturn in the construction industry.
Trois Rivières is expected to post real GDP growth of 2.6 per cent in 2012. The primary driver of growth will be Hydro-Québec’s planned $1.9 billion refurbishment of the Gentilly-2 nuclear reactor, which is forecast to boost construction output substantially.
Sherbrooke’s economy weathered the global recession better than many other Canadian cities. Manufacturing continues to recover from a lengthy downturn throughout the 2000s, but weaker construction output will limit Sherbrooke’s real GDP growth to 1.8 per cent in 2012.
Saguenay’s economy will expand by 1.5 per cent this year, its best performance since 2002. The CMA’s manufacturing sector is expected to resume growth in 2012, boosting employment in the sector. The brightest development in Saguenay has to be the return of positive population growth in both 2010 and 2011. As a result, domestic demand has been stronger and should continue to expand in 2012, leading to an almost 2 per cent rise in overall services sector output.

Fiscal Restraint Slows Growth in British Columbia CMAs A weaker outlook in the construction industry will hold real GDP growth to 2.6 per cent this year in Vancouver, down slightly from the estimated 2.9 per cent increase recorded in 2011. An expected decline in residential construction activity and the winding down of the federal government’s infrastructure program will more than offset growth in the manufacturing and services sectors. Abbotsford–Mission will also feel the effects of lower government investment spending – the CMA is expected to post economic growth of 2.5 per cent in 2012, only marginally better than its 2011 performance of 2.4 per cent.
In Victoria, the provincial government’s ongoing commitment to fiscal restraint – combined with declining output in the construction sector – will produce a 1.9 per cent increase in real GDP in 2012, the CMA’s second consecutive year of growth below two per cent.
Growth in St. John’s Tumbles in 2012 After two spectacular years, the St. John’s economy has limited growth prospects this year. St. John’s led the CMA growth rankings in both 2010 and 2011, thanks in part to 25 per cent annual average growth in construction output over that period. Waning offshore oil production wells, fewer housing starts, and the end of the infrastructure spending program will weaken economic growth to just 0.7 per cent this year, lowest among the 27 CMAS covered in the Metropolitan Outlook.
Halifax’s real GDP growth will ease from 2.6 per cent in 2011 to 2.4 per cent this year. Activity at the Halifax Shipyard will decline in 2012 following two strong years. However, work on new naval frigates beginning in 2013 will help boost the outlook in subsequent years.
Saint John will post its second consecutive year of modest growth in 2012, with the economy forecast to expand by just 1.8 per cent. Although the services sector is forecast to post a decent gain, ongoing weakness in the construction sector is expected to hold growth back in the goods sector.

Source- http://prosperitysaskatchewan.wordpress.com

SK and AB have the highest job vacancy rates in Canada

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Canadian employers had, on average, 248,000 job vacancies last fall, even as the country’s jobless rate remained above 7 per cent, a new national survey shows.
Statistics Canada’s new job vacancy survey, out Tuesday, shows there were 3.3 unemployed people in Canada for every vacancy in the three months to September.
This is the first such release of its kind, so the initial data offers a snapshot of openings in Canada rather than a historical look at change over time.
The release provides estimates of the number and rates of job vacancies at broad industrial levels for Canada, the provinces and territories, and by size of enterprise.
Much is already known about the supply side of Canada’s labour market — the people looking for work. But relatively little is known about the demand side of the equation. Economists said the new release will add useful insights into where the jobs are.
“The job vacancy story can give us an element we didn’t have,” unlike the U.S., which has regularly tracked openings, said Benjamin Tal, deputy chief economist at CIBC World Markets. “This can give us a sense of the skills mismatch what companies want and what is available,”
This isn’t the first time Canada has released openings. A help-wanted index, based on the number of want ads published in Canadian newspapers, ran a decade ago, but was discontinued in 2003.
Year-over-year comparisons of changes in job vacancies will be available from June onwards.
Today’s release “is a good beginning, but we really need a trend to see if it’s improving or not,” Mr. Tal said.
Educational services had the highest ratio of unemployed people to vacancies, with 10 jobless people per opening. Construction was next.
Wholesale trade, along with health care and social assistance, had the lowest ratio.
Among provinces, Saskatchewan and Alberta had the highest job vacancies in the country.

Saskatoon’s population to hit 500,000 in 30 years?

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Controlling urban sprawl, reducing car use and increasing diversity are the key tenants of a 10-year blueprint for Saskatoon’s development unveiled by city administrators.
The strategic plan, a 40-page document released Tuesday at city council chambers and based on input from last year’s community consultation, includes a call to minimize the city’s future footprint, increase transit use, reduce waste going to the landfill and increase the population of downtown.
“We need to be a little more people-oriented and a little less car-oriented or we’re destined to encounter the same urban issues that plague cities like Calgary and Toronto,” said city manager Murray Totland in a speech to a small crowd of media, politicians, business leaders and city staff. “Some might say let’s pour more money into (roads). That’s not the recipe for success and is destined for failure.”
Saskatoon’s population will soon cross the 250,000 mark and could hit 500,000 within 30 years at a growth rate of 2.5 per cent per year, Totland said.
“Our current city limits contain enough real estate to accommodate a city of 500,000 people,” Totland said.
“We just need to think a bit differently. Some will argue 500,000 is unrealistic for Saskatoon — that it’s just too high and it will never be reached. I would beg to differ. While I certainly won’t see 500,000 during my remaining career, I do have a realistic expectation that I will see it in my lifetime. Do not underestimate the draw of our community and the power of compound interest.”
In his address, Mayor Don Atchison targeted those questioning the city’s financial plans and spending on projects such as the $84 million Remai Art Gallery of Saskatchewan and the $122 million police headquarters. The 10-year plan shows council and city administration are listening to residents, Atchison said.
“A lot of people have been concerned about the spending,” he said. “(They’re asking) where is the money going to come from? Well, if we don’t invest today for tomorrow’s future, people are going to be looking back and asking why would the council of that day not be looking forward and planning a city that is inclusive of everyone?”
The document will go to council for approval at its first February meeting before administration unveils more detailed plans around areas such as growth, the environment, transportation and the economy. The plan lays out a laundry list of priorities for the next four years, including establishing more rapid transit corridors, starting to implement the perimeter highway and north bridge project, creating infill guidelines and installing city-wide composting and recycling programs.
There will also be discussion at the council level on implementing measurable targets for a number of the indicators in the plan such as employment growth, the ratio of urban versus suburban development, water consumption, waste diversion, leisure centre usage, transit ridership and the number of people who drive versus walk, cycle or use transit.
Totland stressed that a “build up, not out” vision is critical to Saskatoon’s future. A recent city hall plan projects that 81 per cent of the 10,000 new homes will be suburban, with 19 per cent “infill” housing downtown or in existing neighbourhoods. That’s a far cry from Calgary’s growth plan that targets about half of future development in existing inner-city neighbourhoods.
The cost of continuing to build neighbourhoods of single-family homes on cul-de-sacs is high and will lead to greater congestion, longer commute times and higher taxes, Totland said.
The “21st century city” must be more populated along major corridors, which support transit use. In Saskatoon, the areas targeted for more housing include Eighth Street and Idylwyld Drive and university lands such as the College Quarter along Cumberland Avenue, he said.
“We need to rethink some, if not many, of these principles,” Totland said. “Our current urban form will need to evolve from where it is today.”
Measuring the vision
The plan lays out dozens of goals. Here are a few ways the city will determine if it is successful:
• Need for new landfill is eliminated;
• City workforce better represents diversity;
• Property tax rate per capita decreases;
• Ratio of infill housing improves;
• Population of city centre increases;
• Water and energy consumption per capita decreases;
• Transit ridership increases.
© Copyright (c) The StarPhoenix

Saskatchewan average earnings rank second in Canada

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According to today’s report from Statistics Canada, Saskatchewan’s average weekly earnings were $904.42, the second highest in Canada behind Alberta ($1,052.53). This is the second highest average weekly earnings for Saskatchewan on record. The national average was $883.96.

In November 2011, Saskatchewan’s average weekly earnings increased by 5.1 per cent, compared to a year ago. This increase was the second highest among the provinces behind Newfoundland and Labrador (5.7 per cent) and above the national average of 2.2 per cent.
“Saskatchewan workers continue to benefit from our economy with competitive wages and a multitude of job opportunities,” Advanced Education, Employment and Immigration Minister Rob Norris said. “Our average weekly earnings are second highest in the country and have exceeded the national average since August 2011 which speaks to why this is a great time to be working in Saskatchewan.”

Norris also noted that Saskatchewan’s real wage rate (adjusted for inflation) increased by 2.2 per cent. This was the highest real wage increase among provinces.

“With more than 9,600 jobs listed today on www.saskjobs.ca, opportunities are available in every corner of the province.”

Source- http://prosperitysaskatchewan.wordpress.com

SASKATCHEWAN ECONOMY OFF TO A STRONG START IN 2012

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As the first month of 2012 comes to an end, the positive economic news rolled in as job numbers and wholesale trade hit monthly records. Saskatchewan led the nation in growth in wholesale trade, retail sales and non-residential construction. Average weekly earnings increased and unemployment dropped.

“The strong and resilient Saskatchewan economy is providing many job opportunities for people who want to live and work in Saskatchewan,” Advanced Education, Employment and Immigration Minister Rob Norris said. “Saskatchewan workers continue to benefit from this economic success with competitive wages, and an unemployment rate that has been dropping.”

The number of people employed in Saskatchewan in December 2011 was 523,500, a record for the month of December. When expressed as a percentage of the total labour force population, Saskatchewan has the second fewest number of people receiving EI benefits in Canada at 1.2 per cent. According to a report from Statistics Canada released on January 26, Saskatchewan’s average weekly earnings were $904.42, the second highest in Canada.

“Saskatchewan led the nation in numerous economic areas in reports released in January,” Enterprise Minister Jeremy Harrison said. “Non-residential construction, wholesale trade and retail sales had the highest increases among the provinces as consumers ride a wave of confidence as a result of an economy that is growing, setting the stage for a very good year in 2012.”

In a building permits report released on January 9, non-residential construction was up 118.0 per cent in November 2011 over November 2010, the largest rise in Canada. Saskatchewan’s wholesale trade in November 2011 jumped 22.3 per cent over last November, more than triple the 6.5 per cent rise nationally and the highest increase among the provinces and a record for the month of November. Retail trade was up by 11.3 per cent in November 2010, the highest increase on a percentage basis in the nation.

All of the major economic forecasters are projecting that Saskatchewan will be either first or second in economic growth in Canada this year.

 

Source- http://prosperitysaskatchewan.wordpress.com/2012/01/31/saskatchewan-economy-off-to-a-strong-start-in-2012/

Sask. leads home prices increase

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Saskatchewan house prices have risen faster than any other province in the country, but with interest rates remaining low they are still affordable, says BMO senior economist Sal Guatieri.
BMO’S Economics Department released a report Monday, titled Will Canada’s Housing Boom Forge On, Fizzle Out, or Flame Out?, stating the housing boom in Canada is more likely to cool than correct.
Two-thirds of mortgages in Canada are fixed-term, and the report says most homeowners with variable rates will be able to lock in when rates begin to climb.
“Except for a few remaining hot spots, the national housing boom has already cooled. Sales and price growth has moderated this year, and there are few signs of market imbalances or overbuilding,” the report says.
From 2001 to 2011 house prices in Regina jumped 190 per cent while in Saskatoon prices have gone up 182 per cent.
The next highest was Winnipeg at 171 per cent followed by Vancouver at 159 per cent.
“Home valuations in Saskatchewan were very low a decade ago,” Guatieri said. In 2001 the average price of a home in Saskatoon cost 2.1 times the average family’s yearly income.
“And Regina was even lower, 1.6 times back in 2001,” he said. “Those ratios have gone up, but they are low relative to other major cities in Canada.”
In 2001 the price-to-income ratio was 3.2 nationally, rising to 4.9 in 2011. In 2011 Saskatoon’s ratio was 3.6 and Regina was 3.0.
House prices at three times a family’s income doesn’t seem that high compared to places like Vancouver (10 times price-to-income ratio) and seven times for Toronto, Guatieri said.
“With the exception of a few regions, valuations remain only moderately high across the country, especially when low interest rates, demographics, construction costs, land-use regulations and foreign capital inflows are considered,” said Sherry Cooper, chief economist, BMO Financial Group. “Low interest rates should hold affordability in check for some time, allowing incomes to catch up with higher prices and restore proper valuations.”
The report said there is a risk of a correction in the market if there is a spike in interest rates, a severe recession or stalled foreign investment.
“Barring one of these triggers, however, a dramatic correction is unlikely,” Cooper said. “In our view, the national housing market is more like a balloon than a bubble. While bubbles always burst, a balloon often deflates slowly in the absence of a ‘pin.’ In most regions, where valuations are just moderately high, the air should seep out slowly, as rising incomes catch up with higher prices, allowing valuations to normalize before interest rates do.”
Guatieri said Saskatchewan and Alberta will lead Canada’s economic growth at close to three per cent.
“Those two provinces are attracting a disproportionate share of migrants from other countries and other provinces,” he said. “It bodes well for housing demand, provided those trends continue and for the most part will as long as commodity prices remain somewhat elevated.”
Other national and regional findings include:
• Home ownership in Canada at record highs, climbing about four percentage points in the past decade to around 70 per cent, which is above the current U.S. rate of 66.3 per cent and even above the peak U.S. rate of 69.2 per cent.
• The national housing boom has already cooled, with Canadian home sales up just 4.6 per cent in 2011 and the once red-hot Vancouver market softening. Sales have declined considerably in Vancouver and remain soft across British Columbia.
Source- http://prosperitysaskatchewan.wordpress.com/2012/01/31/sask-leads-home-prices-increase/