Saskatchewan’s real estate market remains resilient, but supply levels are a major concern.
According to a report by the Saskatchewan Realtors Association (SRA), 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 were lower than the activity reported over the past two years, sales remained 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, a low inventory situation continued to be experienced across the provinces, the report says.
SRA CEO Chris Guérette says rising lending rates paired with ongoing inflationary pressures are impacting what individuals can afford, and the market has struggled to see improvements in supply levels in lower-priced homes.
“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,” he said.
The report also notes that following two consecutive years of price growth, the total residential benchmark price remained relatively stable in January. However, condominiums reported further gains in benchmark prices due to rising demand, relative to supply, in apartment-style products.
Guérette says as the market continues to return to pre-pandemic sales levels, it’s important to remember that fewer transactions typically occur in January.
“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,” she said.
Price Trends
Year-over-year price gains range from a low of just under one per cent in Estevan to a high of more than three per cent in the 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, the report notes.
With fewer 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, the report says.
New listings eased to 415 in January, the lowest level since 2008 and more than 35 per cent below levels typically seen at 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.