Saskatoon Housing Bubble. To take a look at the short and long term fundamentals of the Saskatoon real estate market. To prove that Saskatoon and other parts of Canada have a housing bubble. Also looking at how the possible commodity bubble and troubles in places like China, the US and Europe will have on Saskatoon real estate.
Monday, June 11, 2012
Year over year change in the average Saskatoon house price
Here is how the average house price looks like in Saskatoon over the years. First graph is annual prices from 1981, second graph is monthly from 2002.
Here is how the average weekly wage looks like in Saskatoon.
Here is growth of the average weekly wage and average house price, indexed from Jan 06.
If wages moved at the same pace as house prices since 2006, the average weekly wage would have climbed from $680 to be over $1400 today, but unfortunately, the average weekly wage in Saskatoon is just over $850. What will happen to wages when the boom ends, since the time period of Jan 2010 until now, wages are not even beating inflation on average?