Home sales eased across Saskatchewan’s housing market in June, but remain above the long-term averages, according to the latest report from the Saskatchewan Realtors Association (SRA).
With 1,691 sales reported across the province, there was a six per cent decrease year-over-year. However, the SRA reports sales remained well above the 10-year historical averages.
Inventory challenges persist
Similar to other Canadian markets, low inventory levels in some areas of Saskatchewan continue to pose a significant challenge for buyers. Although there was a slight increase in inventory compared to the previous month, levels were still nine per cent lower than the previous year and more than 30 per cent below the 10-year average. The impact of inventory challenges was particularly noticeable in the affordable housing segment, with a 17 per cent decline in inventory for homes priced below $300,000.
“While higher lending rates are impacting sales activity, continued employment growth and Saskatchewan’s relative affordability advantage are preventing a significant pullback in sales,” says association CEO Chris Guérette. She highlights that these factors have prevented a significant pullback in sales.
Tighter market conditions lead to month-over-month price gains
With just under four months of supply, the Saskatchewan real estate market continues to experience tighter conditions than usual for the month of June. This tightness in supply has resulted in month-over-month price gains, with the benchmark price reaching $331,500 in June, up from $329,600 in May.
“Our market continues to demonstrate resilience amid interest rate hikes, ongoing inflationary pressures, and concerns over a national recession,” said Guerette.
Regional highlights
Sales activity across many regions of Saskatchewan eased in the first half of the year, aligning with the overall decline in provincial sales. The Swift Current-Moose Jaw Region was the only region that experienced sales falling below long-term trends.
While inventory varied across the province, all regions reported inventory levels below the 10-year averages. The Saskatoon-Biggar region currently faces the tightest market conditions in the province, according to the SRA.
Price trends
Saskatchewan’s benchmark price varied across different regions in June. Most cities reported year-over-year and monthly price growth, but the cities of Swift Current, North Battleford, and Yorkton experienced both monthly and yearly price decreases. Additionally, the Humboldt region reached its highest benchmark price on record in June.
City of Regina
The City of Regina saw 367 sales in June, marking a nearly 10 per cent year-over-year decline. Despite the decline, sales levels remained over 11 per cent above the long-term, 10-year trends.
A pullback in sales and new listings resulted in inventory similar to levels reported last month. Inventory levels in Regina remain nearly 30 per cent below long-term trends, the lowest levels reported in June since 2014. With only 2.8 months of supply, the SRA reports Regina’s current market conditions are the tightest seen in June over the past decade. These tighter conditions contributed to monthly price gains, with the benchmark price reaching $318,700 in June, up from $316,100 in May.
City of Saskatoon
The City of Saskatoon reported 541 sales in June, representing a nearly two per cent year-over-year increase and a 17 per cent increase above long-term trends. Although there was a slight improvement in new listings compared to the previous month, inventory levels remained over 40 per cent below the 10-year average. Tight market conditions persisted in June, with under two months of supply supporting further price growth. The benchmark price in Saskatoon reached $381,400 in June, up from $380,100 in May.
