INVENTORY LEVELS 25 PER CENT BELOW 10-YEAR AVERAGE

November 3, 2022
For immediate release:

There were 1,144 units sold across the province in October, a year-over-year decline of 12.3 per cent. While sales continue to ease relative to 2021, a record year, October sales data reflects a year-over-year increase of 1.7 per cent when compared with 10-year averages.

The pullback in sales was met with a reduction in new listings, resulting in lower-than-average inventories for this time of year. The monthly decline in sales was enough to cause further gains in the months of supply. With nearly six months of supply in the province, the market continues to return to more balanced conditions, but it is important to note that inventory levels are still over 25 per cent below the 10-year average.

“While our market continues to fare better than many others across the country, we are feeling the impact of interest rate hikes and ongoing inflationary pressures,” said Saskatchewan REALTORS® Association CEO Chris Guérette. “As higher lending rates contribute to the pullback in sales, we are also experiencing a lack of supply in homes priced below $500,000, consumer options are limited right now, and this is likely why sales are down.”

The pullback in new listings continues to be largely driven by homes prices below $500,000, which is also contributing to the decline in sales. Despite monthly adjustments, the benchmark price was $324,900, slightly lower than the month prior and three per cent higher than last October.

“While year-to-date sales have eased when compared to a record 2021, sales levels remain well above long-term trends, speaking to the positive long-term fundamentals in the province,” said Guérette. “Saskatchewan continues to benefit from strong agricultural and commodity markets. This growth should support stable demand in housing ownership as our economy continues to improve.

City of Regina

The City of Regina reported 256 sales in October, 26 per cent higher than 10-year trends. While sales have cooled on a year-over-year basis, year-to-date sales increased by one per cent.

Given the recent level of sales compared to new listings, Regina is experiencing tighter conditions when compared to last year. As seen across the province, inventory levels remain lower than average, specifically in homes priced under $500,000.

Despite monthly adjustments, the benchmark price remains slightly higher than last year at $317,800.

Sales activity continued to trend down in September with 1,267 units sold, a year-over-year decline of seven per cent. However, as seen in August, sales levels remain consistent with long-term trends as the market returns to more balanced conditions.

New listings were relatively stable on a year-over-year basis but continue to decrease when compared to levels seen earlier this year. Despite adjustments in both sales and new listings, inventory levels also fell in September. Inventories remain nearly 11 per cent lower than levels seen last year and well below long-term averages, which continues to prevent the market from moving into “buyers’ market” territory.

“Saskatchewan residents are not immune to the impacts of interest rate increases and ongoing inflationary pressures,” said Saskatchewan REALTORS® Association CEO Chris Guérette. “That said, our housing market continues to fare better than many other regions in the country and we expect that to continue.”

With just over five months of supply, market conditions are not as tight as experienced earlier in the year, but supply levels remain well below long-term averages. The return to more balanced conditions over the past three months has taken some pressure off prices, as well. Despite monthly adjustments, the benchmark price was $329,700 in September, slightly lower than the month prior and four per cent higher than last September.

“While national concerns over a recession are mounting, our province remains well-equipped to weather the storm,” said Guérette. “Elevated commodity prices and a rebound in agricultural production have Saskatchewan on track to post strong economic growth this year. This growth will support jobs in the province and help offset some of the impact that higher lending rates are having on the housing market.”

City of Regina

Unlike certain areas of the province, Regina continues to post stable sales activity relative to last year. Gains in the apartment condominium sector nearly offset reductions in the detached and attached sectors. With 2,999 sales year-to-date, Regina is trending nearly two per cent higher than last year and on pace for another record year. While Regina has not faced the same supply constraints as Saskatoon, new listings continue to decline which is contributing to inventory levels that are over 18 per cent lower than reported last year.

With nearly four months’ supply, levels of supply remain lower than what is traditionally seen in September. Despite relatively tight conditions, there has been an adjustment in monthly prices as higher lending rates weigh on consumers. However, prices remain higher than last year due to gains in the detached sector.

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Information provided by the Saskatchewan Realtors Association (SRA) and is deemed to be correct.