SASKATCHEWAN REMAINS RESILIENT AS INVENTORY CHALLENGES CONTINUE

 Regional Highlights

 City of Regina 

 Regina reported a benchmark price of $307,100 in March, slightly below the $310,200 reported in February.

 City of Saskatoon

 The City of Saskatoon reported declining year-over-year sales for the third consecutive month. That said, sales levels remain consistent with long-term, 10-year averages. Inventory levels remain a significant concern, as the city reports supply levels nearly 37 per cent below long-term averages.

SASKATCHEWAN FARING BETTER THAN OTHER MARKETS DESPITE INVENTORY CHALLENGES

There were 854 sales recorded across the province in February, a year-over-year decline of 19 per cent. However, while sales are down year-over-year, sales activity remains stronger than pre-pandemic levels and above long-term, 10-year averages.

As seen in prior months, Saskatchewan continues to report new listings and inventory levels significantly below long-term trends. There were 1,360 new listings in February, down 18 per cent year-over-year and nearly 28 per cent below 10-year averages. While the months of supply did push above six months, inventory levels were down 6 per cent year-over-year and 31 per cent below 10-year averages.

“We continue to see higher lending rates and supply challenges contribute to a pullback in sales,” said Association CEO Chris Guérette. “I’m beginning to sound like a broken record, but our biggest concern is still inventory levels, specifically in the more affordable segment of our housing continuum.”

The provincial benchmark price reached $318,500 in February, slightly higher than the $317,400 recorded the month prior and 0.4 percent higher than February 2022.

“Year-over-year sales declines were to be expected as we returned to a more balanced market where sales activity is more consistent with the historical 10-year averages,” said Guérette. “Saskatchewan remains one of the most affordable jurisdictions in the country with a resilient market that is well-positioned for stable demand in home ownership

Regional Highlights

Year-to-date sales and new listings have slowed compared to the previous year across all regions apart from Prince Albert. Melfort, Moose Jaw, Saskatoon and Swift Current all reported below-average year-to-date sales as inventory levels remained below long-term trends.

A shift in sales when compared to inventory levels have resulted in increased months of supply in many regions across the province. However, every region in the province apart from Swift Current is reporting months of supply well below 10-year averages.

Price Trends

February price trends varied across the province, with prices increasing in Melfort, Prince Albert, Saskatoon and Yorkton. In most regions, price adjustments are relatively small as we continue to return to more balanced conditions.

North Battleford saw a year-over-year price decline of over 14 per cent in February. There are a number of factors that may be impacting prices in the area and it is too early to tell if this trend will continue to play out over the next several months.

City of Regina

Sales activity slowed for the second consecutive month, contributing to a year-to-date decline of 21 per cent. Despite the decline, sales activity remains consistent with long-term trends for this time of year. While both sales and new listings have improved over January levels, the monthly gain in new listings did not change the inventory situation. February inventory levels fell to the lowest level reported for the month since 2013 and the months of supply once again fell below four months.

Regina reported a benchmark price of $310,200 in February, slightly below the $312,200 reported in January but well above the February 2021 price of $295,900.

City of Saskatoon 

Sales activity slowed for the second consecutive month, contributing to a year-to-date decline of 19 per cent. Further declines in new listings kept inventory levels 36 per cent below 10-year averages for the month and the months of supply remained under four months.

Saskatoon reported a benchmark price of $372,400 in February, up from $366,000 in January and nearly three per cent higher than this time last year.

SASKATCHEWAN REMAINS RESILIENT, SUPPLY LEVELS A MAJOR CONCERN

Pullbacks in both the attached and detached sectors resulted in 631 sales being recorded across the province in January, a year-over-year decline of nearly 16 per cent. While January sales are lower than the activity reported over the past two years, sales remain consistent with pre-pandemic levels.

Despite gains in new listings, January inventory levels were at their lowest levels reported in over a decade. While inventories did improve in homes priced above $300,000, it had little impact on the low inventory situation that continues to be experienced across the province.

“Rising lending rates paired with ongoing inflationary pressures are impacting what individuals can afford, and our market has struggled to see improvements in supply levels in lower-priced homes,” said Saskatchewan REALTORS® Association CEO Chris Guérette. “Prospective buyers impacted by rate hikes are also faced with less choice in the more affordable segment of our market. Without question, these factors are contributing to a pullback in sales activity.”

Following two consecutive years of price growth, the total residential benchmark price remained relatively stable in January. However, apartment condominiums reported further gains in benchmark prices due to rising demand, relative to supply, in apartment-style products.

“As our market continues to return to pre-pandemic sales levels, it’s important to remember that we typically see fewer transactions occur in January,” said Guérette. “As higher commodity prices and a strong agricultural sector continue to support our economy, Saskatchewan remains resilient and well-positioned for stable demand in home ownership.”

Regional Highlights

Many regions across the province experienced a year-over-year decline in sales, apart from Moose Jaw and North Battleford. Inventory gains in Melfort, Prince Albert, Saskatoon, and Yorkton were not enough to offset the declines in other regions, as inventory levels remain far below long-term trends.

While the months of supply have trended towards more balanced conditions across all regions outside of Moose Jaw and North Battleford, all other regions across the province continue to report months of supply lower than 10-year averages.

Price Trends

Year-over-year price gains ranged from a low of just under one per cent in Estevan to a high of over three per cent in Swift Current. Meanwhile, prices eased in Meadow Lake, Melfort, Regina, North Battleford, and Yorkton, with the largest year-over-year price decline occurring in North Battleford.

City of Regina

Regina reported 134 sales in January, slightly below long-term trends for the month. The dip in sales can be attributed to declines in detached activity and ongoing supply issues. With less than 300 new listings this month, January levels are at their lowest level since 2010. Additionally, the pullback in new listings ensured that inventory levels remained well below long-term averages, with much of the inventory decline being driven by homes priced below $300,000.

Regina reported a benchmark price of $312,200 in January, down one per cent compared to January 2022 and above the $291,300 reported in January 2021.

City of Saskatoon

Saskatoon reported 201 sales in January, relatively consistent with long-term trends for the month. While higher lending rates are impacting sales, a lack of new listings and low inventory levels also remain a challenge. New listings eased to 415 in January, the lowest level since 2008 and over 35 per cent below levels typically seen this time of year. As seen in other areas of the province, inventory declines have been mostly concentrated in the more affordable segment of the market.

Saskatoon reported a benchmark price of $366,000 in January, up nearly two per cent compared to January 2022 and above the $336,600 reported in January 2021.