High demand, low inventory squeezing Saskatchewan housing market

Despite the improvement in inventory levels, all areas except the Northern region in Saskatchewan reported supply between 45 to 56 per cent below typical levels for this time of year, with the tightest conditions in the Saskatoon-Biggar and Regina-Moose Mountain areas.

The April provincial residential benchmark price of $374,300, was passed last month with a new record of $381,100.

Chris Guérette, CEO of the Saskatchewan Realtors Association, said the economy and population in Saskatchewan are growing as people continue to choose Saskatchewan as a place to live.

“The challenge is that housing supply is not growing at the same pace,” she explained in the release.

“We’re adding listings, but demand continues to absorb them almost as quickly as they come online. That’s why we’re seeing a third consecutive month of record benchmark prices and why housing availability is becoming one of the most important conversations for Saskatchewan’s future.”

New benchmark price records were established by seven communities in the province and all communities except for one reported price growth, year-after-year.

Despite inventory improvements, the continued rise in housing prices in Saskatchewan is underscoring how supply shortages are impacting market conditions in Saskatchewan.

Guérette said the issue isn’t simply home prices.

“When supply remains this far below historical levels month after month, the impacts extend well beyond the housing market. Housing availability affects labour mobility, economic growth and our province’s ability to attract and retain people.”

She said if Saskatchewan wants to continue growing, enough homes have to be available for that growth to happen.

While prices rose, sales declined in all six provincial economic regions last month. Regina-Moose Mountain, Saskatoon-Biggar and Swift Current-Moose Jaw, however, each saw sales higher than the 10-year average.

In Regina, 350 sales were reported in May, a decrease of 17 per cent year-over-year but still higher than the 10-year average for the month. Inventory improved “slightly” from April, according to the association, and there are about 500 active properties available heading into June – about 1.4 months of supply.

The city also set a new benchmark price record of $350,200 last month, an increase of just under $5,000 from April and close to four per cent higher than May last year.

In Saskatoon, there were 519 sales recorded in May, a decrease of four per cent year-over year. However, that number is 10 per cent higher than the 10-year average for the city.

Saskatoon continues to report “the tightest market conditions” in Saskatchewan. Its inventory remained unchanged last month, entering June with just over one month of inventory – about 560 units.

The city’s residential benchmark price also hit a new record of $444,400 in May.

Seven communities, in total, set new benchmark price records in May in Saskatchewan, which the association deemed notable. The strongest monthly benchmark price growth for the third-straight month was in Melville, with prices up 11 per cent year-over-year. Yorkton, Estevan and Humboldt also saw notable increases.

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by CKOM

High demand, low inventory squeezing Saskatchewan housing market

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