February 6, 2024

STRONG DETACHED SALES LEAD THE SEVENTH CONSECUTIVE MONTH OF ABOVE-AVERAGE SALES IN SASKATCHEWAN

by Jenni Bast

FEBRUARY 6, 2024

FOR IMMEDIATE RELEASE:

Saskatchewan reported 776 sales in January, a year-over-year gain of 24 per cent and nearly 18 per cent above long-term, 10-year averages. The seventh consecutive month of above-average sales in the province was primarily driven by strong detached home sales in January.

Strong monthly sales were met with declining new listings, resulting in 4,562 available units in inventory in January, the lowest level reported in January since 2010.

Inventory levels declined by 18 per cent year-over-year and remain over 36 per cent below long-term, 10-year trends. As seen in prior months, much of the inventory decline was driven by homes priced below $400,000, a segment of the market that remains extremely competitive. Alternatively, properties priced above $600,000 experienced inventory relief in January, though more was needed to offset the declines in lower price ranges.

“Higher lending rates have driven many purchasers to seek out more affordable products, resulting in further inventory declines in the more affordable segment of our market,” noted Association CEO, Chris Guérette. “January failed to bring new listing relief to this area of our market, and prospective buyers can continue to expect tight market conditions when searching for more affordable properties.”

Prices rose across all property types on a year-over-year basis in January, with the most significant gains occurring in row/townhouse-style properties. Saskatchewan reported a provincial benchmark price of $319,600 in January, up from $319,300 in December and nearly 1 per cent higher than January 2023.

“While real estate is local and market conditions vary based on property type, price range, and location – our biggest concern is the lack of inventory across many markets in our province,” said Guérette. “Despite persistent inventory challenges, the predicted easing of lending rates and favourable economic conditions should continue to support stable demand for home ownership in Saskatchewan.”

City of Regina

The City of Regina reported 179 sales in January, a year-over-year gain of over 35 percent and 25 percent above long-term trends. New listing growth in January was not enough to offset strong monthly sales, as inventory levels dipped by nearly 19 per cent year-over-year and remain over 33 per cent below the 10-year average. The City of Regina reported a benchmark price of $301,900 in January, up from $299,800 in December and nearly 2 per cent below January 2023.

January 4, 2024

SASKATCHEWAN CLOSES 2023 WITH SIXTH CONSECUTIVE MONTH OF ABOVE-AVERAGE SALES

by Jenni Bast

JANUARY 4, 2024

FOR IMMEDIATE RELEASE:

Saskatchewan is reporting above-average sales for the sixth consecutive month, with 757 sales across the province in December, a year-over-year gain of 19 per cent and 13 per cent above long-term, 10-year averages.

Year-over-year sales gains in the second half of 2023 failed to offset earlier pullbacks, as the province is reporting a 3 per cent sales decline compared to 2022. While the year-to-date sales decrease was forecasted as the market returns to pre-pandemic sales levels, much of the decline was driven by slowing detached activity. Meanwhile, apartment and semi-detached sales levels improved and continue to contribute to strong monthly sales.

Above-average sales were met with a decline in new listings, resulting in declining inventory levels throughout the year. Inventory levels across the province dipped by over 16 per cent year-over-year in December and remain nearly 35 per cent below the 10-year average.

“Higher lending rates continue to push prospective buyers to seek more affordable options within our market, while inventory levels within that market segment remain extremely tight,” said Association CEO, Chris Guèrette. “When paired with declining new listings in more affordable properties, there simply isn’t enough inventory in lower price ranges right now.”

The shift toward more affordable products has increased price pressures for apartment, row, and semi-detached property types. Meanwhile, detached homes, which account for the majority of sales activity across the province, reported similar prices compared to last year. Saskatchewan reported a benchmark price of $319,300 in December, down from $324,400 in November and nearly 2 per cent above December 2022.

“Saskatchewan’s housing market continues to benefit from the economic success in our province, including a strong labour market and record population growth,” said Guèrette. “Supply challenges, specifically in the more affordable segment of the market, remain our biggest concern when looking ahead to 2024 and are likely preventing even stronger monthly sales numbers.”

Regional Highlights

Despite a slight dip in year-to-date sales across many regions of the province, year-over-year sales activity increased across all regions except for the Northern Region and remain significantly higher than long-term averages.

The decline in new listings across the regions in 2023 continues to drive inventory levels well below long-term, 10-year trends. The Saskatoon-Biggar Region (4.42 months of supply) and the Regina-Moose Mountain Region (5.43) continue to experience the tightest conditions in the province – while the Swift Current-Moose Jaw Region (8.65), Yorkton-Melville (8.84), and Prince Albert Region (8.43) saw a shift to more balanced conditions.

Price Trends

Benchmark prices varied across the province in December, as the communities of Humboldt (+6.2 per cent), Meadow Lake (+4.2), Melfort (+0.7), Melville (+4.8), Moose Jaw (+1.4), Prince Albert (+2.3), Saskatoon (+5.5), and Yorkton (+1.8) all reported year-over-year price gains.

In contrast, Estevan (-7.5 per cent), Regina (-4.1), Swift Current (-4.9), and Weyburn (-5.3) reported year-over-year price declines.

City of Regina

The City of Regina reported 188 sales in December, a year-over-year gain of nearly 25 per cent and 24 per cent above long-term trends.

Despite significant new listing growth in December, the number of new listings decreased by 12 per cent in 2023. This resulted in further reductions in inventory levels, which remain over 33 per cent below long-term averages in the Queen City.

Strong sales and below-average inventory were not enough to prevent price adjustments in December, as the City of Regina reported a benchmark price of $299,800, down from $308,500 in November and 4 per cent below December 2022.

City of Saskatoon

The City of Saskatoon reported 230 sales in December, a year-over-year gain of 14 per cent and 10 per cent above long-term, 10-year averages.

Strong sales were again met with a pullback in new listings, resulting in further inventory declines, as inventory levels in the Bridge City are nearly 45 per cent below the 10-year average.

Tight market conditions supported modest price growth in December, as the City of Saskatoon reported a benchmark price of $374,100, up over 5 per cent from December 2022.

For more information:

Cole Zawislak

Director of Public Affairs and Communications

cole@sra.ca

December 6, 2023

FIVE CONSECUTIVE MONTHS OF ABOVE-AVERAGE SALES DESPITE INVENTORY WOES

by Jenni Bast

DECEMBER 6, 2023

For Immediate Release:

There were 1,006 sales reported across the province in November, a 10 per cent year-over-year increase, marking the fifth consecutive month of year-over-year sales increases in Saskatchewan. Much of the monthly sales gains were driven by rising activity in the Regina and Saskatoon Regions. As seen in previous months, year-to-date sales remain well above long-term, 10-year trends, as the province continues to report strong sales.

A slight year-over-year increase in new listings was not enough to offset above-average November sales, causing further retractions in inventory levels, specifically in homes priced below $400,000. Inventory levels decreased by over 16 per cent on a year-over-year basis and remain over 30 per cent below long-term, 10-year averages.

“Saskatchewan’s housing market continues to benefit from a strong economy, record employment and population growth,” said Association CEO, Chris Guérette. “These factors, when paired with our relative affordability, continue to support above-average monthly sales and stable demand in home ownership.”

The months of supply rose above five months in November, slightly higher than levels reported earlier this year, but still over 40 per cent below the 10-year average. Despite a slight gain in the months of supply compared to October, nearly all of the growth was in higher-priced products, as the more affordable segment of the market continues to face significant inventory challenges.

In line with typical seasonal factors, Saskatchewan reported a slight decrease in the benchmark price of $324,400 in November, down from $327,300 in October and up nearly 2 per cent from November 2022.

“Our market continues to outperform many regions across the country, as we once again report strong sales levels and prices that are holding relatively steady,” said Guérette. “Where we are similar to other markets, however, is that we are experiencing persistent inventory challenges, specifically in the more affordable segment of our housing continuum.”

Regional Highlights

Despite monthly fluctuations, year-to-date sales activity eased across all regions in the province in November, with the steepest decline occurring in the Swift Current-Moose Jaw Region. While year-to-date sales have decreased, the Regina-Moose Mountain, Saskatoon-Biggar, Swift Current-Moose Jaw and Yorkton-Melville Regions are reporting sales well above long-term, 10-year trends.

The Saskatoon-Biggar Region continues to experience the tightest conditions across the province, with just over 3.5 months of supply reported in November.

Price Trends

Benchmark prices varied across the province in November, as the communities of Estevan, Humboldt, Melville, Moose Jaw, Prince Albert, Saskatoon, Weyburn, and Yorkton reported year-over-year price gains. Meanwhile, Meadow Lake, Melfort, North Battleford, Regina, and Swift Current reported year-over-year price declines.

City of Regina

The City of Regina reported 240 sales in November, up nearly 16 per cent year-over-year and 14 per cent above long-term, 10-year trends.

Strong sales and a decline in new listings failed to offer any supply relief in November, as inventory levels were down 21 per cent on a year-over-year basis and remain over 30 per cent below long-term, 10-year trends.

With only 3.5 months of supply, Regina continues to experience significant supply challenges in the more affordable segment of the market. Despite strong sales and relatively tight market conditions, the Queen City reported a benchmark price of $305,000 in November, down from $308,500 in October and nearly 3 per cent below November 2022.

City of Saskatoon

The City of Saskatoon reported 314 sales in November, a year-over-year increase of 18 per cent and nearly 10 per cent above the 10-year average.

Despite a slight year-over-year gain in new listings, strong November sales prevented significant supply growth, as inventory levels were nearly 50 per cent below long-term trends.

Tight market conditions continue to support price growth, as the City of Saskatoon reported a benchmark price of $380,000 in November, down from $382,700 in October but over 5 per cent higher than November 2022.

PROVINCIAL DATA

CITY-BY-CITY DATA

CMA/CA DATA

REGIONAL DATA

For more information:

Cole Zawislak

Director of Public Affairs and Communications

cole@sra.ca

November 7, 2023

STRONG SALES CONTINUE IN OCTOBER DESPITE PERSISTENT INVENTORY CHALLENGES

by Jenni Bast

November 6, 2023

For Immediate Release:

Saskatchewan reported 1,259 sales in October, a year-over-year gain of 11 per cent and nearly 13 per cent above long-term, 10-year trends. Above-average October sales in the province can be attributed to gains in the detached, apartment and townhouse/row-style sectors. Despite year-to-date sales remaining slightly below levels experienced last year, Saskatchewan continues to report sales activity much stronger than the 10-year average.

As seen in prior months, supply challenges continued to persist across many regions of the province in October. Inventory levels fell by over 15 per cent compared to last year and remain over 30 per cent below the 10-year average. Adjustments to sales and inventory levels, paired with declining new listings, resulted in the province reporting below five months of supply in October, a 23 per cent year-over-year decrease and over 40 per cent below long-term, 10-year averages.

“Higher lending rates continue to impact both demand and new listings in our market, which is likely preventing even stronger October sales numbers,” noted Association CEO, Chris Guérette. “Prospective move-up buyers are facing challenges amid higher interest rates and ongoing inflationary pressures, and we’re seeing a trickle-down effect with limited supply growth in the lower price ranges, which remain extremely competitive.”

With 4.5 months of supply, the province is reporting the tightest conditions heading into November since 2007. Despite tight market conditions, home prices remained relatively stable this month. Saskatchewan reported a benchmark price of $327,300 in October, down from $328,000 in September and up nearly 2 per cent from October 2022.

“Our market continues to demonstrate its resilience, as many have predicted, and we’re once again reporting strong sales despite inventory challenges, inflationary pressures, and higher lending rates,” said Guérette. “Saskatchewan is affordable, we’re growing at the fastest pace in over a century, and we’re well positioned for stable demand in home ownership.”

Regional Highlights

Apart from the Melville-Yorkton Region, all regions across the province continue to report year-over-year sales activity above long-term, 10-year trends. Additionally, on a year-to-date basis, the Northern Region of the province is the only region not reporting an increase in sales.

With just over three months of supply reported in October, the Saskatoon-Biggar region continues to experience the tightest conditions in the province, along with the highest year-to-date growth in benchmark price.

Price Trends

Benchmark prices continued to vary across Saskatchewan communities in October, as Humboldt, Meadow Lake, Melfort, Melville, Moose Jaw, Prince Albert, and Saskatoon reported year-over-year price gains. Meanwhile, the cities of Estevan, North Battleford, Regina, Swift Current, Weyburn, and Yorkton reported year-over-year price declines.

Despite some monthly variations, year-to-date price movements have ranged from a decline of over five per cent in North Battleford – to a five per cent gain in Humboldt.

City of Regina

The City of Regina reported a record high 312 sales in October, a year-over-year increase of 24 per cent and 29 per cent above long-term, 10-year trends. While the Queen City experienced a year-over-year gain in new listings, record October sales prevented inventory gains, as Regina continues to report inventory levels nearly 30 per cent below the 10-year average.

Regina is once again reporting below three months of supply, and the more affordable segment of the market continues to be extremely competitive. Despite record sales and tight market conditions, Regina reported a benchmark price of $308,500 in October, down slightly from $308,700 in September and 1.2 per cent below October 2022.

City of Saskatoon

The City of Saskatoon reported 382 sales in October, a year-over-year gain of 20 per cent and 12 per cent above long-term, 10-year trends. New listings failed to offset a sixth consecutive month of above-average sales, resulting in the lowest October inventory levels reported in the Bridge City since 2007.

With just over two months of supply in Saskatoon, we continue to see upward pressure on home prices. The benchmark price reached $382,700 in October, up from $381,900 in September and nearly 4 per cent above October 2022. Year-over-year price gains were reported in all property types, ranging from one per cent in semi-detached properties – to an eight per cent increase in townhouse/row-style properties.

For more information:

Cole Zawislak

Director of Public Affairs and Communications

cole@sra.ca

October 28, 2023

SASKATCHEWAN REPORTS STRONG SEPTEMBER SALES DESPITE LOWEST INVENTORY LEVELS SEEN SINCE 2009

by Jenni Bast

October 5, 2023
FOR IMMEDIATE RELEASE:

Saskatchewan reported 1,295 sales across the province in September, a year-over-year gain of 2.5 per cent and 6.3 per cent above long-term, 10-year averages. While year-to-date sales have eased compared to last year, Saskatchewan continues to report sales well above long-term trends.

Supply challenges continued across the province in September, as inventory levels were over 12 per cent lower than levels seen last year and nearly 32 per cent below the 10-year average. As inventories improved in higher-priced properties, much of the inventory decline is once again being driven by homes priced below $400,000, as the more affordable segment of the market remains highly competitive.

“As seen in previous months, significant supply challenges continue to persist across Saskatchewan, specifically in the more affordable segment of our housing continuum,” noted Association CEO, Chris Guérette. “Inventory challenges and higher lending rates are, without question, impacting sales activity across the province, but relative affordability paired with strong economic growth is supporting above-average sales in our market.”

Strong September sales and ongoing supply challenges translated to 4.8 months of supply across the province, the lowest level reported in September since 2009. The provincial benchmark price reached $328,000 in September, up slightly from $327,800 in August and 1.1 per cent above September 2022.

“Provincial prices remain stable as price gains in Saskatoon, Prince Albert, and Yorkton offset price declines in Regina and Swift Current in September,” said Guérette. “Ultimately, real estate is local, and conditions vary across the province. That said, supply challenges in the lower-priced, more affordable segment of our market remain a significant concern provincially.”

Regional Highlights
Apart from the Northern Region, every region across the province reported year-to-date pullbacks in sales and new listings. Despite the year-to-date decline, sales levels remain above long-term, 10-year trends across most regions, while the Swift Current Region returned to sales levels consistent with the 10-year average.

Price Trends
Consistent with prior months, the benchmark price varied across Saskatchewan communities in September. Humboldt, Meadow Lake, Melfort, Melville, Prince Albert, and Saskatoon are all reporting year-over-year price gains, while Estevan, Moose Jaw, North Battleford, Regina, Swift Current, Weyburn, and Yorkton report year-over-year price declines.

On a year-to-date basis, Regina, Moose Jaw, Swift Current, North Battleford, and Meadow Lake have all reported price declines, ranging from a high of six per cent in North Battleford to under three per cent in Swift Current. Meanwhile, Melville and Humboldt reported year-to-date price gains of nearly five per cent.

City of Regina

The City of Regina reported 305 sales in September, a year-over-year increase of 7.4 per cent and 15 per cent above long-term, 10-year trends.

Strong September sales were met with a decline in new listings, contributing to further inventory declines. With 3.2 months of supply, conditions have not been this tight in the Queen City since 2011.

Despite strong monthly sales and tight market conditions, the City of Regina reported a benchmark price of $308,700 in September, down from $313,100 in August and $319,200 in July.

City of Saskatoon

The City of Saskatoon reported 374 sales in September, a year-over-year increase of 14 per cent and nearly 8 per cent above long-term, 10-year trends.

Saskatoon is reporting year-over-year sales increases for the fifth consecutive month. When paired with decreasing new listings, the Bridge City is reporting 2.6 months of supply, the lowest level seen in September since 2007.

Tight market conditions resulted in the City of Saskatoon reporting a benchmark price of $381,900 in September, up from $378,300 in August but below July’s record benchmark price of $384,200.

For more information:

Cole Zawislak
Director of Public Affairs and Communications
Saskatchewan REALTORS® Association
cole@sra.ca

Uncategorized • Uncategorized • October 27, 2023

Posthaste: 3.4 million Canadians will renew their mortgages by 2025 — and they’re worried

by Jenni Bast

The days of “rock-bottom rates” are over and mortgage borrowers will have to adjust to the new reality.

That’s the message from real estate brokerage Royal LePage, which released a poll Oct. 26 showing elevated homeowner anxiety about the coming wave of mortgage renewals. Over the next 18 months, the firm estimates that 3.4 million Canadians will renegotiate their mortgages — almost all at a higher interest rate. The poll, conducted from Sept. 8 to 14, found nearly three quarters of them are worried about the looming transaction.

People are contemplating a series of financial changes to manage the anticipated extra drain on their finances, including looking for a new lender and lengthening amortization periods. Many also said they are contemplating day-to-day cost-cutting measures to cope with lending rates that are now at 21-year highs.

“While the central bank’s key lending rate is expected to come down in the medium term, the likelihood that we will return to rock-bottom rates of less than one per cent is very low. Upon renewal, fixed-rate mortgage holders will be faced with a new reality — higher monthly payments,” said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd., in a press release.

Among the tactics people are weighing to ease the burden of their mortgage payments, 24 per cent said they have considered extending their mortgage’s amortization period, 23 per cent said they are thinking about switching lenders to get a better rate, almost 20 per cent said they have mulled extending their mortgage term and 17 per cent said they have contemplated selling their home and downsizing.

Yolevski warned that going to a new lender could backfire as homeowners will have to qualify for the stress test — 5.25 per cent or the lending rate plus two per cent.

Canadians are cautious when it comes to their mortgages. For example, 74 per cent of homeowners have a fixed-rate mortgage versus 20 per cent for a variable rate. Further, 49 per cent have a five-year mortgage term and 39 per cent have a 25-year amortization.

Still, that won’t protect them from the higher cost of borrowing.

“Many Canadians today are facing a mortgage renewal at a significantly higher rate than they’re used to, and this will continue to be the case in the coming years as more loans mature,” Yolevski said.

Variable-mortgage rate borrowers were first in line to experience the pain of higher rates with 42 per cent saying they “put a major financial strain on their household.”

Some homeowners reported their mortgage payments doubled or tripled as interest rates rose at an unprecedented pace as the Bank of Canada struggled to cool inflation. Royal LePage estimates that 20 per cent of the people it surveyed have a variable-rate mortgage.

Of those who have a variable-rate or hybrid mortgage, 64 per cent say that higher interest rates have caused their mortgage payment to hit its trigger rate — when the mortgage payment no longer covers the interest portion — causing their monthly payments to increase.

To cope with this budget shock, just over half of those carrying variable-rate mortgages said they have cut back on going out and travel, while just under half, or 47 per cent, said they are saving less. People also cut back on essential spending on groceries, gas and utilities and 40 per cent have tapped savings.

The 74 per cent of homeowners with a fixed mortgage rate, “have been protected from those increases, at least for a short time,” Yolevski said.

Source: https://financialpost.com/news/3-4-million-canadians-renew-mortgages-2025#:~:text=3.4%20million%20Canadians%20will%20renew,Financial%20Post

October 11, 2023

SASKATCHEWAN REPORTS STRONG SEPTEMBER SALES DESPITE LOWEST INVENTORY LEVELS SEEN SINCE 2009

by Jenni Bast

October 05, 2023For immediate release:

###

Regional Highlights

Apart from the Northern Region, every region across the province reported year-to-date pullbacks in sales and new listings. Despite the year-to-date decline, sales levels remain above long-term, 10-year trends across most regions, while the Swift Current Region returned to sales levels consistent with the 10-year average.

Price Trends

Consistent with prior months, the benchmark price varied across Saskatchewan communities in September. Humboldt, Meadow Lake, Melfort, Melville, Prince Albert, and Saskatoon are all reporting year-over-year price gains, while Estevan, Moose Jaw, North Battleford, Regina, Swift Current, Weyburn, and Yorkton report year-over-year price declines.

City of Regina

The City of Regina reported 305 sales in September, a year-over-year increase of 7.4 per cent and 15 per cent above long-term, 10-year trends.

Despite strong monthly sales and tight market conditions, the City of Regina reported a benchmark price of $308,700 in September, down from $313,100 in August and $319,200 in July.

City of Saskatoon

The City of Saskatoon reported 374 sales in September, a year-over-year increase of 14 per cent and nearly 8 per cent above long-term, 10-year trends.

Tight market conditions resulted in the City of Saskatoon reporting a benchmark price of $381,900 in September, up from $378,300 in August but below July’s record benchmark price of $384,200.

– 30 –

For more information:

Cole Zawislak

Director of Public Affairs and Communications

cole@sra.ca

The Saskatchewan REALTORS® Association (SRA) provides leadership and services that support over 1,650 Realtors in Saskatchewan through technology, education, and advocacy. The SRA is the trusted voice that brings expert insight to public policymakers on matters that affect growth, housing, real estate, and wealth creation in our communities. For more information, visit: www.sra.ca

September 6, 2023

Energy Assistance Program

by Jenni Bast

Our Energy Assistance Program is easy to join and completely FREE!

High utility bills can be stressful for lower-income households. And it can be costly to make energy efficient upgrades to your home. We’re here to help you save money on utility bills and improve your home’s energy efficiency.

All Saskatchewan residents who meet the program eligibility below can apply. This program is offered in partnership with the Government of Canada, the City of Saskatoon and the City of Swift Current Light and Power.

Why Apply?

Save up to $230 a year on your utility bills!

Make your home energy efficient for free!

Want to Participate?

Our Home Energy Advisors will come to your home and complete a walkthrough.They’ll upgrade your home with FREE energy efficient items to help you save money, like:

Smart thermostat
ENERGY STAR LED light bulbs
Smart power strip
High-efficiency showerheads
Aerators (kitchen and bathroom)
Drying rack

The Home Energy Advisors will also give you simple everyday tips to help keep your energy use down. This will help you save money on your utility bills.

To qualify for the program, you must:

Own or rent a single-detached home or semi-attached home
If you’re renting, get the consent of your landlord to participate
- Download Landlord Consent form
Live in the home year-round
Be a customer of SaskPower, Saskatoon Light and Power or Swift Current Light and Power
Have a household income of $70,000 or less (exceptions apply – contact us for details)
Live in a multi-residential unit building: i.e. apartment or condo (some conditions may apply)

Hear from a participant

“There are so many small ways to save and they’re all right under our noses! It took someone like this energy coach to point them out to me. The process was eye opening to me and it was great to have this specialist come into my home and provide this all to me for free!”

– Chris Tessmer

Apply Today

APPLY NOW

Due to the high number of applicants, it’s taking longer than normal to process Energy Assistance Program applications. We ask you only submit 1 application. Applying more than once slows things down more. We thank-you for your patience and understanding as we work as fast as we can! Questions? Email us or call us at 306-910-7304.

September 6, 2023

RECORD SALES IN AUGUST, TIGHTEST MARKET CONDITIONS HEADING INTO SEPTEMBER SINCE 2007

by Jenni Bast

Saskatchewan reported a record-high 1,631 sales in August, a year-over-year increase of 11 per cent and nearly 25 per cent above long-term, 10-year averages.

Strong August sales were met with a pullback in new listings, contributing to a decrease in inventory levels for the month. As seen in prior months, the inventory decline was largely driven by homes priced below $400,000, as the more affordable segment of the market remains highly competitive.

“Saskatchewan is once again reporting strong sales despite ongoing inventory challenges, inflationary pressures and higher lending rates,” said Association CEO, Chris Guérette. “Higher interest rates are pushing more purchasers to seek out more affordable options in the market, and, as a result, we continue to experience significant supply challenges in the lower price ranges of our market. These persistent supply challenges are likely preventing even stronger sales activity in August.”

Record sales and low inventories caused the provincial months of supply to drop below four months – below three months in Regina and below two in Saskatoon – reflecting the tightest market conditions seen heading into September since 2007. Despite tighter market conditions, Saskatchewan’s benchmark price eased slightly in August, primarily due to declines in the more expensive detached and semi-detached markets. Notwithstanding price adjustments following months of steady growth, prices remain comparable to levels reported last year.

“Our province continues to benefit from its affordability advantage, record population growth and gains in international migration. Unfortunately, when housing supply fails to meet the increased demand, as seen in other jurisdictions across the country, inventory challenges become a real concern and affordability can be eroded,” said Guérette. “We continue to keep a very close eye on inventory levels, specifically in the more affordable segment of our market.”

August 4, 2023

STRONG SALES CONTINUE IN JULY DESPITE PERSISTENT INVENTORY CHALLENGES

by Jenni Bast

August 3, 2023For immediate release:

Saskatchewan reported 1,560 sales in July, a year-over-year increase of 9 per cent and nearly 13 per cent above long-term, 10-year averages. Much of the increase was driven by property priced below $300,000, as the more affordable segment of the market remains highly competitive.

As seen in prior months, inventory levels remain a significant challenge in many areas of the province. Despite a slight increase from last month, inventory levels were 11 per cent below levels seen in the previous year and over 30 per cent below the 10-year average. While inventory challenges continue to impact the more affordable segment of the market, there have been slight inventory gains in properties priced above $300,000.

“Higher lending rates continue to impact both buyers and sellers, with many consumers seeking more affordable options in our market,” said Association CEO, Chris Guérette. “Potential move-up buyers are less likely to list in the current rate environment. When paired with persistent inventory challenges, the more affordable segment of the market remains extremely competitive.”

Despite a modest gain in the months of supply, which reached over four months in July, conditions remain tighter than last year and significantly below long-term trends. Tighter market conditions again resulted in month-over-month price gains, as Saskatchewan’s benchmark price reached $333,100 in July, up from $331,500 in June and $329,600 in May.

“While inventory levels remain a concern for us, Saskatchewan is once again reporting sales levels well above long-term trends,” said Guérette. “Our market continues to benefit from a strong economy and record population growth, which is proving to help offset some of the impact caused by another policy interest rate increase by the Bank of Canada.”

Regional Highlights

As seen in prior months, year-to-date sales activity has eased across many regions of the province. Despite the year-to-date decline, many regions are reporting sales levels above long-term trends.

Adjustments in inventory levels continue to vary across the province. However, many regions continue to report inventory below long-term, 10-year averages. The Saskatoon-Biggar region is experiencing the tightest conditions in the province, with less than three months of inventory.

Price Trends

The benchmark price varied across Saskatchewan communities in July, with many regions reporting year-over-year and monthly price growth.

The City of Estevan was the only region to report both yearly and monthly price decreases. In contrast, Saskatoon, Prince Albert, Yorkton, and Meadow Lake all reported record-high benchmark prices in July.

City of Regina

The City of Regina reported 352 sales in July, a year-over-year decline of less than 1 per cent. Despite the slight year-over-year decline, July sales levels were nearly 17 per cent above long-term, 10-year averages.

A pullback in both sales and new listings prevented any significant change to the inventory challenges being experienced in Regina. Despite a slight month-over-month improvement in the months of supply, market conditions remain tight in the Queen City.

Regina reported a benchmark price of $319,200 in July, up from $318,700 in June and $316,100 in May.

City of Saskatoon

The City of Saskatoon reported 497 sales in July, a year-over-year increase of 11 per cent and nearly 16 per cent above long-term, 10-year averages.

Strong sales levels prevented any significant change in inventory levels in July. Despite a slight increase in the months of supply, conditions remain extremely tight in the City of Saskatoon.

Saskatoon reported a record benchmark price of $384,200, up from $381,400 in June and $380,100 in May.

– 30 –

For more information:

Cole Zawislak

Director of Public Affairs and Communications

cole@sra.ca