Amid cooling market, 150 lots returned to City of Saskatoon
Last Updated: Thursday, February 5, 2009 | 12:32 PM CT
CBC News
In another sign Saskatoon's real estate boom has cooled, the city is reporting that a record number of serviced lots were returned in 2008.
Individuals and companies changed their minds on 150 lots — and paid more than $800,000 in penalties to give them back.
Each year, the city typically takes back between 10 and 15 lots from people who decide not to build, but that number went out the window after 735 lots were sold in 2007.
Saskatoon was undergoing an unprecedented housing boom around that time and house prices were skyrocketing. But then the red-hot market cooled.
Among the companies that returned lots last year was North Ridge Development, which returned 10, company spokesman Wally Mah said.
However, the majority of the returns were likely coming from inexperienced builders hoping to take advantage of a hot real estate market, he said.
"When that market cools off, who are the first people that flee? They are the first people that flee, and they don't have the ability to sustain carrying three or four lots at a time," he said. "That's why there's a large return of lots."
According to Brian Casey, a spokesman for the city's land branch, the lot returns came primarily from the Hampton Village on the city's west side, and Willowgrove subdivisions, in the northeast.
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