Market Updates


Brenda & Bob Ganne Sutton Group - Results Realty

July 2022

EASING SALES HELPING SHIFT MARKET TOWARD MORE BALANCED CONDITIONS

July sales eased to 1,439 units reflecting a year-over-year decline of nine per cent contributing to the year-to-date decline of nearly 10 per cent.   While sales have eased, last year was a record year, and with year-to-date sales just shy of 10,000 units, levels are still well above long term averages for the province.

New listings trended down from levels seen over the past few months and last year’s levels.  Nonetheless, the pullback in sales has outpaced the decline in new listings supporting a shift toward more balanced conditions.  This also caused inventory levels to continue to trend up for the lows recorded earlier in the year.  While inventories pushed up to 7,142 units, levels are still nearly 11 per cent lower than what was available in the market last year.

“As expected, gains in lending rates are having some cooling impacts on the housing market causing consumers to seek out more affordable options.  The challenge will be product availability in the lower price ranges of the market. Supply levels are improving compared to earlier in the year, however, the year-over-year decline in inventory has been driven by homes priced below $400,000,” comments Chris Guérette, CEO of Saskatchewan REALTORS® Association.

The recent shifts help push the months of supply up to nearly five months, reflecting far more balanced conditions compared to what was experienced over the past four months.  While conditions are not as tight as they have been, with less than five months of supply, the market is still experiencing the tightest July conditions since 2009.

Relatively tight conditions are supporting further price gains in the province at a time when many cities in Canada are seeing some retraction of prices.  In July, the benchmark price reached $335,100, slightly higher than the previous month and over five per cent higher than levels recorded in July 2021.

“Moving forward, further rate increases are expected as concerns over inflation persist in the market. This will continue to weigh on housing markets across the country,” said Guérette.   “However, markets like Saskatchewan are expected to fare better than some of the larger centers in the country as they never experienced the same level of price growth throughout the pandemic.”

Regional Highlights 

Sales activity in July eased across most regions in the province contributing to the year-over-year decline in sales reported.  However, on a year-to-date basis, every region continues to see sales activity that is either consistent or far stronger than long term trends.

Inventory levels trended up in July over previous months, but every region still faced inventory levels that were lower than the previous year and long-term averages.  Overall, most regional markets are starting to shift away from the exceptionally tight market conditions seen earlier in the year.  However, most regional markets still face conditions that are tighter this July then they were last year.  The most notable exceptions in July were Prince Albert and Yorkton, which recorded year-over-year gains in the months of supply as the decline in sales outpaced the decline in inventories.

Price Trends 

Despite slower sales across most of the main centers in Saskatchewan, prices still trended up relative to last month in many of the larger centers in the province.  The monthly gains in Saskatoon, Regina, Moose Jaw, Prince Alberta, Swift Current and Estevan were enough to offset pullbacks in other areas supporting the provincial monthly gain.  Despite some monthly shifts, prices in all centers except Yorkton remain higher than last year’s levels, with the largest year-over-year gains occurring in Melville.

City of Regina 

July sales remained relatively strong in the city, supporting year-to-date sales of 2,379, a one per cent gain over last year’s record pace.  At the same time, new listings did ease compared to the previous year, but it was not enough to cause any significant shift in inventory levels which remained similar to last month and over 13 per cent lower than last years levels.

When considering the sales and inventory in the market, the months of supply remained above three months in July, still low relative to historical standards and last years levels, but an improvement over the levels seen earlier this year.  The relatively low months of supply continued to support some modest upward pressure on homes prices, but at rates slower than what was experienced in the early spring. As of July, the benchmark price reached $330,600, slightly higher than last month and nearly four per cent higher than levels reported in July 2021.

City of Saskatoon 

Sales in Saskatoon trended down again this month contributing to the year-to-date decline of nearly 11 per cent.  While sales have eased, that was relative to record high levels and with over 3,000 sales so far this year, levels are still over 20 per cent higher than long term trends for the city. Easing sales were also met with a pullback in new listings preventing any significant shift in inventory levels and keeping the months of supply relatively tight with less than three months of supply.

The persistently tight market conditions continue to weigh on home prices.  In July, the benchmark price reached $383,800 nearly one per cent higher than last month and over six per cent higher than price levels reported last year.  Moving forward, higher lending rates are expected to continue to weigh on housing demand.  However, given the low level of inventories in this market, it will take time for conditions to return to more balanced levels.

June 2022

HOME PRICES CONTINUE TO RISE DESPITE SLOWER SALES

June sales eased over last year’s record levels. However, with 1,808 sales this month, activity is still over 20 percent stronger than long term trends for the province.

“While sales have been trending down in the province this year, we cannot lose sight of the fact that sales levels are still amongst the highest levels ever recorded in our market and these higher relative levels are still being achieved despite the sharp rise in lending rates,” comments Chris Guérette, CEO of the Association.

For the second month in a row, we have seen the level of new listings improve to levels that are consistent with the 10-year average. This has helped support some monthly gains in inventory levels. However, with only 6,893 units available in inventory, supply levels are still 27 per cent lower than traditional levels, and the month of supply remains amongst the lowest levels reported for June.

Persistently tight market conditions continue to place upward pressure on home prices. In June the unadjusted benchmark price rose to $333,400 nearly one percent higher than last month and nearly five percent higher than last year’s levels.

“Moving forward we do anticipate that further rate increases will weigh on sales and eventually support more balanced conditions. However, Saskatchewan continues to benefit from relative affordability, improving migration and job growth, which should help offset some of the impact that higher rates would have on the housing market.”

The Saskatchewan REALTORS® Association produces monthly real estate statistics to provide insight to decision makers in our province on how best to manage matters that affect growth, housing, and the creation of wealth. It also proudly works with the Saskatchewan Housing Continuum Network to collaborate with like-minded industries.

Regional Highlights 

While June sales eased across most regions in the province, Prince Albert, Yorkton, and Regina reported a rise in June sales compared to last year. Some of this was possible thanks to recent gains in new listings. Despite some monthly variation, most regions have recorded a pullback in year-to-date sales, but like provincial totals most areas are seeing transactions levels well above long-term trends.

While there have been some improvements in new listings depending on the location, it has generally not been enough to cause significant shifts in inventory levels, as all areas are still facing less inventory this June compared to last year and are below long-term trends.

Price Trends 

Low levels of supply compared to the demand in the market has continued to place upward price pressure in the market. Home prices generally trended up in June relative to earlier months in the year and last year’s levels. When considering the year-to-date benchmark price, price growth has ranged from relatively stable prices in Moose Jaw to year over year gains that have neared 10 percent in both Melville and Warman.

City of Regina 

Slower sales in June were not enough to derail earlier gains as year-to-date sales totaled 2,023 units, setting a record high.  A decline in the sales to new listings ratio did help support modest improvements in inventory levels compared to earlier in the year.  Slower sales coupled with slightly higher inventories was enough to push the months of supply back above three months.

While the shift to more balanced conditions did help slow the pace of price growth in the market, prices continued to rise this month. In June the benchmark price reached $329,100 up from the previous month and over three percent higher than levels reported last year.

City of Saskatoon 

Sales in June eased over last year’s record, contributing to the year-to-date decline of nearly 12 percent.  While sales have eased, with 2,584 sales so far this year, levels are still amongst the highest levels recorded for the city.

New listings continue to trend up this month relative to the sales causing the sale to new listings ratio to ease to 56 per cent.  This helped support modest gains in inventory levels compared to earlier in the year, however, inventory levels continue to remain well below last year’s levels and long-term trends for the city.

Relatively strong demand combined with the inventory in the market has kept the months of supply exceptionally low. This has resulted in further upward pressure on prices this month. In June the benchmark price reached $380,200, over one percent higher than last month and a five percent gain relative to last year. Much of the price growth continues to be driven by the detached market.

May 2022

Saskatchewan

Unlike some areas of the country, sales activity in May trended up relative to levels seen earlier in the year.  With 1,814 sales this month, levels are still slightly lower than last year’s record, but remain well above typical activity in May.  Year-to-date sales have totaled 6,682 units, down 11 per cent from last year’s record high, but over 27 per cent higher than long-term trends.

“While demand for homes in Saskatchewan has remained relatively strong so far this year, we did not go through the same early demand surge as some markets. In fact, our market is exhibiting trends that we typically see in the Spring.  What we are still struggling with is lower supply levels, which is keeping conditions relatively tight and causing further upward pressure on prices,” comments Chris Guérette, CEO of Saskatchewan REALTORS® Association.

In May, new listings did trend up relative to earlier months and was slightly higher than levels reported last year.  This helped push inventory levels above 6,000 units, but inventories are still nearly 20 per cent lower than last year’s levels and 30 per cent below long-term trends for the month.

Despite some shifts in supply, the market continues to remain exceptionally tight with less than four months of supply, something not seen since 2008.  The tighter market conditions are placing further upward pressure on home prices.  As of May, the benchmark price in the province reached $330,300, nearly one per cent higher than last month and four per cent higher than last year’s levels.

“Rising lending rates are expected to have some cooling impacts on housing demand.  While sales activity could be impacted in coming months, it will take some time for the market to return to more balanced conditions.  Our recent report in partnership with the Saskatchewan Housing Continuum Network titled Saskatchewan’s Current Housing Continuum outlines the significant number of homes our province needs to build in the next seven years, so we don’t fall behind.” said Guérette. “The next step will be to undertake research and recommend targeted policies that foster building and smart growth.”

Regional Highlights 

Sales trended up compared to earlier in the year for most of the regions in the province.  While province wide sales were still lower than last year’s record levels, there was year-over-year growth in Moose Jaw, Regina and Yorkton which all recorded new highs for the month.  The sales gains in May for those areas were not enough to offset earlier pullbacks, but it is important to note that every region in the province continues to report year-to-date sales that are stronger or consistent with long term trends.

After the first five months of the year, most regions continue to face market conditions that were generally tighter than last year.  However, the most notable exception is in North Battleford.  While inventory levels have eased in the region, the pullback in sales has been more significant causing the months of supply to generally rise.  Despite the gains in this region conditions are still tighter than long-term trends supporting year-to-date price growth.

Price Trends 

Despite generally tighter market conditions, residential benchmark prices have trended down for the areas of Moose Jaw, Swift Current, North Battleford, and Yorkton in May.  Despite some slowing on a year-to-date basis, prices generally remain higher across all the regions except Moose Jaw.  Moose Jaw saw some downward pressuring on prices at the end of 2021. While prices in Moose Jaw have generally been trending up in 2022 for detached homes and are comparable to the highpoint of 2021, lower prices earlier in the year are pulling down the year-to-date prices.

Steady price growth as led to new high prices in many of the larger centres in the province.  However, on a year-to-date basis prices have yet to fully recover from previous highs in Estevan, Swift Current, Weyburn and Moose Jaw.

City of Saskatoon 

Thanks to a boost in new listings compared to earlier in the year, sales activity in May reached 541 units.  While sales this month and on a year-to-date bases have eased compared to last year, sales are still amongst the highest levels seen and well above long term trends.

Sales activity has likely been restricted in this market due to the supply levels.  While new listings and inventories did improve from levels seen earlier this year, they are still far lower than long-term trends and the months of supply fell to just over two months, the lowest level seen since early 2008.  The tight conditions are mostly being driven by the detached and attached segments of the market.

With a market that generally favours the seller, there continues to be upward pressure on prices.  Benchmark prices have reported steady monthly gains for eight consecutive months and as of May were over four per cent higher than levels reported last year.

While higher lending rate are expected to impact demand in coming months and recent gains in starts should help with overall housing supply, it will take time before we see more balanced conditions play out in the Saskatoon market.

City of Regina 

Sales in Regina not only trended up from earlier in the year but reached a record high for the month of May.  The growth was enough to push year-to-date sales to an all-new record high at 1,615 sales.  Improving economic activity has supporting growth in the employment market so far this year boosting confidence and demand in the housing market.

The improvement in sales outpaced the growth in new listings and inventory levels fell compared to both last year’s levels and long-term trends.  This also caused the months of supply to ease from levels reported earlier in the year.   The months of supply has remained below three months for the past three months, something that has not happened since 2012.

The tight market conditions have been placing upward pressure on prices and in May the benchmark price reached $328,200, nearly four per cent higher than levels reported last year and a new record high for the city.  The price growth has been driven by the single-family market as condominium prices have yet to recover from the previous highs set in 2015.

April 2022

Saskatchewan

Sales low but prices reach record highs due to low supply.

With 1,547 sales this month, activity slowed compared to the record high set last April. Despite the slower sales seen in the first four months of this year, it is noteworthy that those 4,873 sales are 30 per cent higher than longer term trends.

“While rising lending rates are likely contributing to some of the pullback in sales, another challenge limiting sales has been the drop in supply choice, especially in the larger markets of the province,” said SRA CEO, Chris Guérette.

New listings in April were 18 per cent lower than last year’s levels and inventories remained 20 per cent lower than last April and over 30 per cent below long-term trends. Lower levels of sales and lower inventory levels prevented any notable change in the months of supply, which remained below four months.

“The months of supply number is an important gage of supply and demand balance in the market and current levels are far lower than what we would expect to see in the market at this time of year. While conditions have been tighter historically, we have not seen market conditions like this for over a decade and it is resulting in further price growth,” said Guérette.

Residential benchmark prices rose to $295,000 in April, two per cent higher than last month and a four per cent gain over last year. Prices have trended up over the past two years and as of this month have reached a new monthly record high for the province.

“Consumers purchasing budgets are shrinking, and the Bank of Canada rate increase has pushed up the mortgage stress test’s qualifying rate. That is going to remove strained buyers from the market, and it’s going to reduce the size of mortgage those who still qualify can get,” said Guérette. “While Saskatchewan still offers some of the most affordable housing in the country, affordability will continue to deteriorate and could lead to a slow-down of the market, despite the many initiatives included in the recent federal budget.”

Regional Highlights 

After the first four months of the year, both Swift Current and Southeast Saskatchewan remain the only areas to see sales activity improve over the previous year. However, despite a pullback in year-to-date sales in other regions, most locations across the province are reporting sales activity that are either consistent or stronger than long-term trends.

When considering the adjustments to supply relative to the sales activity there has been some recent shifts in Melfort, North Battleford and Prince Albert. Each of these regions has experienced a larger pullback in sales relative to the pullback in new listings, resulting in conditions that were not as tight as last year. However, both the months of supply and sales to new listings ratio for these regions remain well below historical levels and all these centers continue to see year-to-date benchmark price growth.

Price Trends 

Home prices trended up in April across most of the larger centers in the province, supporting year-over-year gains in all areas except North Battleford and Estevan. Despite some monthly adjustments in North Battleford, on a year-to-date basis prices are still higher than last year’s levels and sitting at a new high for the city. While many other centers have seen prices hit new highs after the first four months of the year, prices are still on a recovery path in Regina, Moose Jaw, Prince Albert, Swift Current, Estevan, Weyburn, and Melville.

City of Saskatoon 

Further reductions in April sales have contributed to the year-to-date sales decline of 13 per cent in Saskatoon. However, with 1,513 sales so far this year, this is still far higher than long term averages. Higher lending rates should cool some of the housing demand this year, but sales activity in Saskatoon has also been impacted by a challenging supply scenario. In April, new listings were a mere 665 units, 30 per cent lower than last April and over 18 per cent below typical levels seen at this time of year. The drop in new listings relative to the sales has caused further reductions in inventory levels and ensured the market continues to favour the seller with only two months of supply.

Both Inventories and the months of supply have not been this low for the month of April since 2008. The tighter conditions in the market are weighing on home prices. The benchmark price in April rose to $338,500 reflecting a year-over-year gain of over three per cent and representing a new record high. While price gains have occurred both in the single family and condominium market, year-to-date condominium prices remain below previous highs reported back in 2015.

City of Regina 

New listings trended up relative to levels recovered over the past several months, helping support some monthly gains in sales activity. However, both sales and new listings continue to remain lower than the levels reported last year both for the month of April and year-to-date figures. Despite some reductions in sales activity, levels this year are still 37 per cent higher than the long-term average and are more consistent with activity seen prior to 2013.

While new listings have remained consistent with levels traditionally seen in the market, the stronger sales have started to weigh on overall inventory levels. Inventory levels are higher than levels recorded in the market over the past four months, with 1,060 units available in April, inventories are 13 per cent below long-term trends. The stronger sales combined with the current inventory levels has caused the months of supply to stay below three months for the second month in a row. This is exceptional as it has not happened in the Regina market since 2012.

The tighter market conditions are placing upward pressure on prices. As of April, the benchmark price rose to $271,100 reflecting a year over year gain of four per cent. While prices have yet to recover from previous highs, should conditions remain this tight we could continue to see the price gap narrow.

The strong sales compared to inventory levels did cause the months of supply to fall below three months, the first time it has done that since October 2012. While the tighter conditions have had some impact on prices in the market, if the market still is this tight, we could see added pressure on home prices in the coming months.

In March, the benchmark price rose to $264,000, nearly two per cent higher than last year and one per cent higher than last month.  The growth in prices helped narrow the spread from the earlier high, but prices continue to remain nearly 13 per cent below the monthly high recorded back in June 2012.

March 2022

Both sales and new listings trended up this month compared to levels seen over the past few months. However, the level of new listings coming onto the market was far lower than levels seen last year and for the 10-year average. This caused the sales to new listings ratio to rise and prevented any notable change to the supply situation. With 5,648 units in inventory, levels are nearly 30 per cent lower than what we traditionally see in the market in March.

“March is typically the month that we start to see more people listings their homes adding supply to the market. While we did see more new listings compared to the winter months, it hasn’t been enough compared to the sales to make any significant change in supply, resulting in further price gains in the market,” said Saskatchewan REALTORS® Association (SRA) CEO Chris Guérette.

The unadjusted benchmark price in March reached $289,500, nearly two per cent higher than last month, over three per cent higher than last year’s levels and 13 per cent higher than pre-pandemic levels.

Economic conditions have been improving across most sectors and with that we have seen gains in employment and reductions in the unemployment rate. This along with relatively low lending rates is likely supporting further confidence in the housing market and continued strength in demand.  While sales did ease in March over last year’s record levels, they remained 40 per cent higher than long-term trends.

“As we move more into the spring market supply will be a crucial factor,” said Guérette. “Should supply levels start to improve we could see more balanced conditions slowing the upward pressure on prices. However, this transition could take longer than expected, especially in our largest cities, which is why we’ve begun outreach to our industry partners to discuss how to address these supply shortages.”

Regional Highlights 

Sales growth in Southeast Saskatchewan and Swift Current were not enough to offset pullbacks in the remaining regions of the province. However, it is important to note that sales in every region continued to remain stronger than long term trends after the first quarter. At the same time, every region has generally seen the amount of new listings ease compared to the previous year and all areas except Swift Current have seen levels fall below long-term trends.  This is creating tighter conditions across most regions of the province and is likely impacting sales in those regions.

After the first quarter, both North Battleford, Prince Albert and the Melfort region have seen their months of supply trend up. However, it is important to note that despite those gains, conditions still mostly favour the seller based on historical norms for those centres.

Price Trends 

Generally tighter market conditions across each city continued to place upward pressure on home prices.  In March, all main reporting centres recorded price growth. Year-over-year gains ranged from a low of less than one per cent in both Estevan and North Battleford to a high over nine per cent in Warman. While the price gains did narrow the spread from earlier highs, the only areas to see prices fully recover and post further growth was Saskatoon, Martensville, Warman, Humboldt and Melfort.

City of Regina 

Sales in the city slowed compared to last year’s record pace, but with 351 sales in the month, levels are still amongst the strongest March activity recorded in the city. Like other areas, new listings did rise compared to levels seen over the past seven months. This helped support modest gains in inventory compared to the last four months. However, with 982 units in inventory, this was nine per cent lower than levels recorded last year. . Regina did not have the same inventory struggles last year, but this recent shift does put inventory levels over 12 per cent below long-term trends.

The strong sales compared to inventory levels did cause the months of supply to fall below three months, the first time it has done that since October 2012. While the tighter conditions have had some impact on prices in the market, if the market still is this tight, we could see added pressure on home prices in the coming months.

In March, the benchmark price rose to $264,000, nearly two per cent higher than last year and one per cent higher than last month.  The growth in prices helped narrow the spread from the earlier high, but prices continue to remain nearly 13 per cent below the monthly high recorded back in June 2012.

City of Saskatoon 

Sales in Saskatoon eased over last year’s record elevated level, yet with 491 sales this month, activity is the second highest on record and over 40 per cent higher than the 10-year average for March. While new listings did trend up compared to the levels seen over the previous six months, thanks to continued strong demand, it was not enough to cause a substantial change in the inventory situation in the city. With 1,054 units in inventory in March, levels were 19 per cent below what was in the market last year and 31 per cent below what we typically see in the market in March.

Low inventory and strong sales resulted in further tightening of the market. With just over two months of supply in March, this is the tightest March Saskatoon has seen since 2008. Persistently tight conditions have continued to affect prices which trended up again this month and currently sit over three per cent higher than last years’ levels. While the pace of growth has eased compared to last year, prices have risen by around $40,000 since the start of the pandemic.

February 2022

February sales in the province reached 1,059, an 8% decline relative to last year. While the year is starting out with sales that have slowed compared to last year, it is important to note that housing demand continues to remain strong as levels are over 22 per cent higher than what we typically see at the start of the year and nearly 40 per cent higher than average levels recorded throughout the 2015–2020-time frame. 

While there have been some signs of improving new listings relative to sales, inventory levels remained lower than levels we traditionally see in the market and the months of supply averaged just over five months. The five months of supply in February is slightly lower than levels expected at this time of year. 

“There is a significant amount of uncertainty weighing on the economy. While this could have some impact on demand, supply levels are still low providing some cushion should demand taper further. Conditions also vary significantly based on location, property type and price range because real estate is very local,” said Saskatchewan REALTORS® Association CEO Chris Guérette. 

Most of the decline in sales was driven by pullback in the detached sector. However, some of this could be related to the lower inventory levels. Detached inventories in February were 3,643 across the province 30 per cent below 10-year averages and the lowest the market has seen since 2010. 

“Last month we started to raise an alarm bell about inventory levels in Saskatchewan,” said Guérette. “Now that we’re two months into the market, that dip in inventory levels being the lowest we’ve seen since 2010 is concerning. That’s why we’re working harder than ever to build a fuller picture of Saskatchewan’s housing continuum so we can identify where the gaps are and build smartly and collaboratively for growth.” 

Benchmark prices in the province have remained stable over the past several months, but on a year-to-date basis remain over five per cent higher than last year’s levels. If the inventory can better meet demand as we move through the spring, it should support more stability in prices this year. 

Regional Highlights 

While provincial sales did ease over last years levels, this was not the case in every region. After the first two months of the year, sales activity rose higher in both Swift Current and Southeast Saskatchewan Region. When considering the two larger regions in the province, the pullback in sales in Saskatoon was far higher than what Regina saw. However, this could be related to the steeper decline in Saskatoon inventory levels. While it is early in the year, we have seen a significant rise in the months of supply in North Battleford and Prince Albert regions. Should this trend continue into the spring, it could have effects on home prices. 

Price Trends 

While some cities saw prices pullback slightly in February compared to January levels, prices were still higher than levels recorded at the end of 2021. While pullbacks generally did not offset earlier gains on a year-to-date basis, we did see year-over-year price declines occur in Moose Jaw and Estevan. The shift in price trends is something to monitor but it is important to note that these shifts are not accompanied by dramatic changes in other housing market indicators, making it too early in the year to speculate if this will be the trend for those centers moving forward

City of Regina 

With 261 sales in February, city levels rose to a new record high. The February gain offset some of the pullback that occurred last month as year-to-date sales remained at levels consistent with what we saw last year, which is over 30 per cent higher than long term trends for the city. In addition to the low lending rates and improvements in the job market, Regina has not faced the same level of supply constraint that has prevented stronger sales growth in some markets. However, should the sales to new listings remain above 70 per cent as we move into spring, we could start to see supply challenges occur in this market as well. 

By the end of February there were 908 units in inventory, like last month and last year. Inventory levels are slightly lower than long term trends. Strong sales relative to the inventory levels caused the months of supply to ease to just over three months. 

The detached segment of the market demonstrated tighter market conditions relative to the broader market. While prices remained stable this month, after the first two months of the year, the benchmark price for detached homes rose by over six per cent moving the city closer to price recovery. 

City of Saskatoon 

For the second month in a row, sales activity eased over last year’s record levels. Despite the decline, levels continue to remain well above longer term trends. Some of the pullback in sales can be in part due to some of the supply challenges in the market. Year-to-date there have been 942 new listings, far lower than the over 1,100 new listings that we typically see at the start of the year. Inventory levels also remain low with 985 units available at the end of February, over 30 per cent below the 10-year average. 

The pullback in sales combined with a pullback in inventory has done little to provide more balance in the market. In fact, with just over three months of supply in February, conditions are like last year and at levels not seen since 2012. 

Persistently tight market conditions have contributed to further price gains. The residential benchmark price reached $330,600 in February, higher than levels recorded over the past several months. However, there are some signs that the pace of benchmark price growth is easing. After the first two months of the year, the benchmark price increased by over five per cent; far lower than the annual gain of over eight per cent recorded in 2021. 

January 2022

New listings in January remained well below traditional levels seen in the market in January. While levels are better than what was recorded in December, it did little to change the inventory situation as inventories remain at the lowest January levels since 2012.

January sales in the province reached 748 units, a decline over last year’s elevated levels, but still higher than longer term averages. Lower inventory levels likely contributed to some of the slower sales activity this month.

“Inventories still remain relatively low, but if new listings continue to improve relative to the sales, this should eventually translate into improved supply and better market balance,” said SRA CEO, Chris Guérette.

The months of supply in January rose to just over seven months. While this is a gain compared to last January, overall conditions are still relatively tight for January. Persistently tight market conditions supported further price gains. In January, the unadjusted benchmark price rose to $285,700, nearly seven per cent higher than last January.

The SRA has been working to gain a better understanding of the factors affecting housing supply in Saskatchewan. Everything from labour and supply shortages to land costs, lending rate increases, the pandemic and remote work, along with increased immigration and economic growth. All are contributing to gaps in the housing continuum and the Association is seeking partnerships that foster collaboration in the industry to work and address those gaps.

“With changes expected in lending rates, the 2022 housing market is not expected to see the demand levels as 2021. However, it is still early in the year, and like I have said before, my biggest concern for 2022 is inventory,” said Guérette.

Regional Highlights

Every region in the province recorded slower sales this month compared to the strong levels recorded last year. While sales in the province remained in line with historical norms, Moose Jaw stood out as the decline in January sales pushed levels well below long term trends and caused a significant rise in the months of supply. While it is too early in the year to put much weight on these figures, Moose Jaw is a place to watch. The months of supply generally trended up toward more balanced conditions across most regions. However, conditions still tightened compared to last year in the regions of Melfort and Saskatoon.

Price Trends

Benchmark home prices across all the larger centers did record gains compared to last January with year-over-year increases ranging from a low of just under one per cent in Estevan to a high of nearly 16 per cent in Melville.  While the year-over-year gains are significant, it is important to remember that prices started to see more significant gains last year in the spring. Nonetheless, most of the centers recorded further price gains in January over December levels. The largest unadjusted monthly gain occurred in Meadow Lake at over five per cent.

City of Regina

Like other centers, sales in January eased over the strong levels recorded last year but remained above the 10-year average. At the same time, new listings did ease slightly over last year’s levels, but with 316 new listings for the month, the sales to new listing ratio eased to 53 per cent, slightly lower than the 57 per cent recorded last year. Inventory levels also remained relatively stable this month.  However, slightly slower sales combined with stable inventory levels helped push up the months of supply to just over five months.

Despite the gain, the months of supply is still relatively tight, supporting further price growth in the market. Benchmark prices in January trended up over last month and reflect a year-over-year gain of over seven per cent.

City of Saskatoon

January sales eased over last years levels, but with 230 sales for the month, activity remained consistent with long term trends. At the same time, new listings in the market continued to ease compared to levels we traditionally see this time of year and could be one factor preventing stronger sales in the month. Inventory levels remained exceptionally low for January with 881 units. That is over thirty per cent below longer-term averages and the lowest January levels since 2010.

The limited supply and relatively strong sales kept the months of supply relatively tight at under four months.  While prices remained relatively stable compared to where they were at the end of 2021 with a total residential benchmark price of $328,600 in January, levels are nearly six per cent higher than last January.

Information provided by: SRA (Saskatchewan Realtors Assoc.)

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