The Saskatchewan Realtors Association (SRA) reveals that the province saw 1,631 sales in August, setting a new record for the month. This translates to an 11 per cent year-over-year jump and nearly 25 per cent above the 10-year averages.
Record sales, shrinking listings
August’s sales performance, however, was accompanied by a noticeable decrease in new listings. As seen in previous months, the decline in inventory was primarily driven by homes priced below $400,000, where the more affordable segment of the market remains competitive.
SRA CEO Chris Guerette commented on this trend, saying, “Higher interest rates are pushing more purchasers to seek out more affordable options in the market, and, as a result, we continue to experience significant supply challenges in the lower price ranges of our market. These persistent supply challenges are likely preventing even stronger sales activity in August.”
Tightest market conditions since 2007
Record sales coupled with low inventories have caused the provincial months of supply to drop below four months, while Regina now has below three months of supply and Saskatoon dips below two months. According to SRA, these conditions reflect the tightest market seen heading into September since 2007.
Despite tighter market conditions, Saskatchewan’s benchmark price experienced a slight easing in August, primarily due to declines in the more expensive detached and semi-detached markets. It dropped .5 per cent, year-over-year to $327,800.
Guerette adds, “Our province continues to benefit from its affordability advantage, record population growth, and gains in international migration. Unfortunately, when housing supply fails to meet the increased demand, as seen in other jurisdictions across the country, inventory challenges become a real concern, and affordability can be eroded. We continue to keep a very close eye on inventory levels, specifically in the more affordable segment of our market.”
According to SRA, year-over-year sales growth in Saskatchewan was driven by gains in the Regina, Saskatoon and Yorkton regions.
Many regions also experienced a pullback in year-over-year inventory levels, resulting in tighter market conditions across all larger regions of the province. The Saskatoon-Biggar region, in particular, is grappling with the tightest conditions in the province, with just under three months of inventory.
Price trends across Saskatchewan communities in August varied. Several regions, including Regina, Moose Jaw, Swift Current, North Battleford, Estevan, and Weyburn, reported year-over-year price declines, ranging from 2.5 per cent in North Battleford to over 4.0 per cent in Weyburn and Estevan.
On the flip side, while other regions reported price easing, recent monthly price gains in Melfort, Prince Albert, and Humboldt resulted in record-high benchmark prices in their respective cities.