Realtors Association expresses concern about low inventory levels, particularly in the affordable segment of the housing continuum
Housing sales in Saskatchewan were down last month compared to February 2022, but realtors say the real estate market in the province remains strong despite inventory problems.
The Saskatchewan Realtors Association (SRA) recorded 854 sales across the province in February, which is down 19% year over year. The association said that sales activity is still higher than pre-pandemic levels and above long-term, 10-year averages.
New listings and inventory levels, however, were significantly below 10-year averages. 1,360 new listings were recorded in the province in February, down 18% year-over-year and 28% below the 10-year averages. Inventory levels were down 6% year-over-year and 31% below 10-year averages.
Association CEO Chris Guérette said that higher lending rates and supply challenges are still the main reasons for the pullback in sales.
“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,” Guérette said.
Regional highlights and price trends
Across the province, new listings and year-to-year sales were all down compared to the previous year in all regions except Prince Albert.
Melfort, Moose Jaw, Saskatoon, and Swift Current all had below-average year-to-year sales and inventory levels below 10-year averages.
February price trends varied across the province, with prices increasing in Melfort, Prince Albert, Saskatoon, and Yorkton.
According to the SRA, price adjustments were relatively small in most regions as the province continued to return to more balanced conditions.
The provincial benchmark price reached $318,500 in February, slightly higher than the previous month and 0.4% 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.”
Regina and Saskatoon
Sales activity in the city of Regina slowed for a second straight month, leading to a year-to-date decline of 21%. Sales and new listings were up from January’s numbers but these were not enough to help the inventory problem.
February had the lowest levels of inventory for the month since 2013. 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.
Saskatoon also saw a second straight month of decreased sales activity, contributing to a year-to-date decline of 19%. Inventory levels were down 36% compared to the 10-year average for the month of February.
Saskatoon reported a benchmark price of $372,400 in February, up from $366,000 in January and nearly 3% higher than this time last year.
