Sales in Saskatchewan’s real estate market experienced a four per cent year-over-year decline in May, with a total of 1,736 recorded sales across the province, according to the latest data from Saskatchewan Realtors Association (SRA).
Despite the decline, sales levels in May remained 20 per cent above the long-term, 10-year averages, indicating the market’s resilience in the face of challenges. The recent gains in new listings contributed to stronger sales figures, although inventory levels remained lower compared to the previous year, reaching their lowest point in May since 2008.
Inventory challenges and economic strength offset impact of higher lending rates
“Saskatchewan continues to benefit from a strong economy which is helping offset some of the impacts of higher lending rates, keeping sales activity above levels seen before the pandemic,” says SRA CEO Chris Guerette.
“Despite ongoing inventory challenges, our market is once again showing its resilience as sales remain above long-term averages.”
Tightening market conditions lead to monthly price gains
Adjustments in both sales and inventories during May resulted in a decrease in the months of supply to below four months. The tightening market conditions contributed to monthly gains in the benchmark price, which reached $329,600 in May, reflecting a nearly two per cent increase from April.
“Supply levels do vary across different regions of the province. For example, much of the inventory declines have been driven by the Regina and Saskatoon markets, while other parts of the province are reporting year-over-year gains,” said Guerette.
Regional highlights: Varied sales trends and inventory levels
Most regions across the province reported year-to-date sales declines in May, with the Swift Current-Moose Jaw Region being the only region to experience sales activity falling below long-term trends.
Adjustments in new listings led to year-over-year inventory level gains in both the Swift Current-Moose Jaw and Yorkton-Melville regions, although inventory levels remained below long-term averages in all areas of the province.
Inventory adjustments have kept market conditions relatively tight throughout the province, but the Regina-Moose Mountain and Saskatoon-Biggar regions have experienced the tightest conditions. These regions have also seen monthly price gains due to the limited supply.
City of Regina: Sales eased but remain above average
In Regina, sales in May decreased by eight per cent year-over-year, with 418 recorded sales. Despite the decline, sales levels remained significantly higher than the 10-year average and pre-pandemic levels.
Although new listings reported seasonal monthly gains, inventory levels remained lower than the typical levels seen in May. The supply-demand imbalance caused the months of supply to fall to 2.4 months, resulting in monthly price gains.
Regina’s benchmark price reached $316,100 in May.
City of Saskatoon: Steady sales and low inventory levels
The City of Saskatoon reported 538 sales in May, similar to the sales figures from May 2022 and well above the long-term averages.
Despite seasonal gains in new listings, inventory levels remained below the 10-year average. The steady sales and lower-than-average new listings maintained the tight inventory levels, resulting in a decrease in the months of supply to two months.
The tighter market conditions pushed the benchmark price in Saskatoon to $380,100 in May, reflecting a monthly gain of nearly two percent.