Thursday, May 31, 2007

Going Crazy in Saskatoon

While our primary focus here is Alberta real estate, things are going just so crazy right next door in Saskatoon, that we ought to comment.
Just check out this Saskatoon blog and how the prices have been rising there as well. Looks like bidding wars, 50% prices jumps and other 'norms' of a 'bubble' market are fully present.
What does Saskatoon have? Of course, the Saskatoon story will be lots of jobs, uranium mines, hundreds of thousands of acres of farmland and a very mild weather and scores of recreational and cultural activities. And we do know the world will be running out of quality food products as India, China, Brazil and other countries' appetite for food increases. So, prices have to rise even in Moose Jaw as everyone tries to establish a little base in the prairie heart land or lest face famine. And of course, with a population of slightly less than one million and land size bigger than most countries, they are also running out of land.
Anyone who has watched Saskatoon closely in the last couple of years knows that the recent boom is the result of pure play speculation. And this is not unexpected because people will be willing to bid up any asset class so long as there is a plausible story around it and cheap availability of credit.
How will this all end? The chines are trying hard to pop there bubble, but there is no such urgency seen here in Canada.
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