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.”
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.
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.