The doubling of rental rates in one western region is set to stir another investor influx and rising prices.
Investors that flooded into the heartland of the western province in the last number of years saw their rental rates more than double.
According to the Canada Mortgage and Housing Corporation, average rental rates in Saskatoon jumped from $600 in 2006 to more than $1,000 for a two-bedroom apartment.
The average monthly rent for a three-bedroom house is $1,300. While local tenants have been voicing their frustration by local market values, investors are eager to get into this lucrative area.
Jason Yochim, executive office of the Saskatoon Region Association of Realtors, tells CREW that market conditions have stabilized in the last 12 months.
“Prices have adjusted accordingly as new inventory has come onto the market,” he says. “This stabilization has led to more sales, especially in the area of townhouses and apartments.”
According to a recent Royal LePage House Price Survey, the average price of a standard two-story house rose by 2.5 per cent to $393,500 for the first quarter of the year. Condo prices increased by 1.4 per cent to $265,000 during the same period.
“The low property taxes is a huge factor for many buyers here, as well as affordability compared to other market,” adds Yochim.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate