Saskatchewan’s housing market ended 2022 on a mixed note, with record sales of apartment condos offset by declining sales in detached homes resulting in a 12 per cent decline in residential sales, according to the Saskatchewan Realtors Association (SRA). 

However, the SRA notes the 15,334 sales recorded in 2022 were still 15 per cent higher than long-term averages. The province continues to report sales that are stronger than pre-pandemic levels, while many markets across the country are experiencing a strong shift in demand.

Inventory and interest rates

The number of new listings in 2022 also decreased by seven per cent from 2021 and was well below long-term trends. 

The SRA says the decline in overall supply was driven by properties priced below $500,000, resulting in tight conditions in the lower-priced segment of the market. 

Additionally, the Bank of Canada raised interest rates seven times in 2022, contributing to the decline in sales.

According to the SRA’s CEO, Chris Guerette, “Without question, higher lending rates are contributing to the pullback in sales. We saw the Bank of Canada raise interest rates seven times in 2022. When paired with declining inventory levels, particularly in homes priced below $500,000, we do see that having an impact on sales.”

Benchmark prices

Despite the decline in sales, home prices in the province of Saskatchewan rose on an annual basis. 

Overall benchmark prices for 2022 were more than four per cent higher than the year prior. However, benchmark prices began to ease towards the end of the year in response to the decline in sales and the increased interest rates.

Guerette also stated, “The housing market is changing as consumers adjust to higher lending rates and rising costs of living. That said, Saskatchewan continues to fare better than many regions across the country, and we expect that to continue in 2023.” 

The CEO adds, “The biggest concern heading into the new year is the lack of supply in homes priced below $500,000.”

Regional highlights 

Sales decreased across all regions of the province in 2022, with declines ranging from 27% per cent in Melfort to two per cent in Swift Current. 

However, all regions reported sales that were either consistent with or above long-term trends. Additionally, all regions also saw a decline in both new listings and inventory levels, according to the SRA.

City of Regina

In Regina, the decline in sales was driven by pullbacks in the detached sector, as sales activity improved in every other category. 

Despite the decline in sales, the 3,609 sales reported in 2022 were over 23 per cent higher than long-term trends and well above pre-pandemic activity. 

The benchmark price increased by more than three per cent on an annual basis, despite the pullback in inventory and sales.

City of Saskatoon

In Saskatoon, 4,587 sales were recorded in 2022, a 15 per cent decline over the previous year. 

Similarly, both new listings and inventory levels experienced a pullback in 2022, with listings 14 per cent below long-term averages 2022 and a decline in inventory levels resulting in average supply levels 31 per cent below long-term trends.

On an annual basis, benchmark prices rose nearly five per cent over 2021 levels.