Saskatchewan enjoyed strong September sales, even though inventory was the lowest it’s been in 14 years.
Last month, the Saskatchewan Realtors Association (SRA) reported provincial sales of 1,295, a 2.5 per cent year-over-year gain and 6.3 per cent higher than long-term, 10-year averages. The province has consistently reported sales above long-term trends, despite year-to-date sales easing from last year.
With inventory more than 12 per cent under 2022 levels and close to 32 per cent under the 10-year average, supply has been a challenge for the province. The drop is driven by homes selling for under $400,000, whereas the higher-priced market segment has seen inventories improve.
Inventory challenges continue with healthy sales volume
“As seen in previous months, significant supply challenges continue to persist across Saskatchewan, specifically in the more affordable segment of our housing continuum,” Chris Guérette, SRA’s CEO, notes. “Inventory challenges and higher lending rates are, without question, impacting sales activity across the province, but relative affordability paired with strong economic growth is supporting above-average sales in our market.”
The supply issues coupled with strong sales last month resulted in 4.8 months of supply province-wide, which is the lowest September amount since 2009. Saskatchewan’s benchmark price hit $328,000 last month, too, which represents a small increase from August and 1.1 per cent above September 2022’s figure.
Guérette comments, “Provincial prices remain stable as price gains in Saskatoon, Prince Albert, and Yorkton offset price declines in Regina and Swift Current in September.
Ultimately, real estate is local, and conditions vary across the province. That said, supply challenges in the lower-priced, more affordable segment of our market remain a significant concern provincially.”
Regional highlights
Except for the Northern region, every provincial region reported year-to-date declines in both new listings and sales. However, in most regions, sales stayed above long-term, 10-year trends, with the Swift Current area returning to sales levels in line with the 10-year average.
Price trends
Like in previous months, September’s benchmark price was different among most areas of the province. Humboldt, Meadow Lake, Melfort, Melville, Prince Albert and Saskatoon reported year-over-year price jumps. On the other hand, prices went down year-over-year in Estevan, Moose Jaw, North Battleford, Regina, Swift Current, Weyburn and Yorkton.
Year-to-date, Regina, Moose Jaw, Swift Current, North Battleford and Meadow Lake reported price drops that range from less than 3 per cent in Swift Current up to 6 six per cent in North Battleford. Humboldt and Melville saw year-to-date price gains of close to 5 per cent.
Regina – tightest conditions since 2011
Regina had 305 September sales, a year-over-year jump of 7.4 per cent and 15 per cent above long-term, 10-year trends. These strong sales were paired with fewer new listings, which added to already declining inventory. The area has just over 3 months of supply, making conditions the tightest they’ve been in Regina since 2011.
Despite this, the city saw the benchmark price go down to $308,700 in September from $313,100 and $319,200 in the two months prior, respectively.
Saskatoon – high sales, few new listings
There were 374 September sales in Saskatoon, a year-over-year jump of 14 per cent and almost 8 per cent above long-term, 10-year trends. The city reported increases in year-over-year sales for the fifth month in a row. This, along with fewer new listings, left Saskatoon’s supply last month at about 2.6 months – the lowest since 2007.
Experiencing tight market conditions, the city had a September benchmark price of $381,900, up from $378,300 in August but less than the $384,200 record benchmark price of July.
