While some other parts of the country are seeing struggles in their housing markets, the market in Saskatchewan continues to be a hot one.
Saskatchewan Realtors Association have released their numbers for July and indicated Saskatchewan’s housing market was still on a roll, with a record 1,851 sales across the province last month — up 11 percent year-over-year and over 30 percent above the 10-year trend.
“We’re seeing Saskatchewan continue to set all kinds of record numbers this month,” said Chris Guérette, CEO of the Saskatchewan Realtors Association.
“Again, sales are amongst the best ever. And we have now 25 consecutive months of sales surpassing that 10-year average. So, again, this is yet another month of setting records.”
SRA is reporting year-to-date sales have outpaced 2024 through the first seven months of year, with 2024 having already been the province’s second-best year for sales on record.
Regina reported a July record of 412 sales, up over eight percent year-over-year, while Saskatoon reported a 610 sales in July, up seventeen percent and also a record high.
Guérette also points to records in benchmark prices.
“If you take a look at the provincial benchmark price, of all of the regions that we cover in the province and that we track the market, all of the benchmark prices increased in there,” Guérette said. “And throughout there, we have a number of communities that have yet again hit a record benchmark price.”
The provincial residential benchmark price hit an all-time high of $372,700 in July, up from $370,700 in June and up over eight percent from July of last year.
Regina’s benchmark price for July was $343,300, up eight percent compared to July 2024 and ahead of the previous high of $343,200 in June. Saskatoon also set a benchmark price record in July of $435,100, up from $432,700 in June and up seven percent from July 2024.
But while the numbers are strong in the major cities, it is the smaller cities that are leading the pack in rising prices.
Humboldt led the way in July at nearly 17 percent higher compared to July of last year. Others gaining were Melville at 16 percent, Melfort and Moose Jaw 14 percent, Meadow Lake 13 percent, Yorkton 11 percent, Prince Albert 11 percent and Swift Current 10 percent.
In addition to Regina and Saskatoon, Humboldt, Meadow Lake, Melville, Swift Current, and Yorkton also all recorded record benchmark prices for July.
One reason Guérette points to is that buyers are attracted to the affordability of the smaller cities.
“The centres that happen to be more affordable are seeing the highest price gains. And they’re also seeing less dips in sales or rather the opposite, quite strong activity in sales. And so, if you take that, what we see nationally, and then you put it on to the scale of the province, we’re kind of seeing the same thing here, right? There are smaller municipalities that are more affordable, quiet way of life that many people are looking for, are attracting people there, and it’s putting pressure on that inventory. And when you do that, it’s putting upward pressure on prices as well.”
Province-wide inventory remains tight. With over 1,000 of 5,214 units that were available at the end of July already conditionally sold, only 4,174 active units remained heading into August. The tightest conditions are in Regina-Moose Mountain at 2.6 months of supply, and Saskatoon-Biggar at 1.9 months.
This tight inventory is a major reason why prices are climbing.
“In places like Saskatoon and Regina, the months of inventory are very, very low,” said Guérette.
“That’s not a comfortable place to be in. Where you want to have a more balanced market, it’s more like four to six months.”
That lack of inventory is leading to the double-digit increase in prices in a number of communities. “When you’re seeing that high pressure on prices, it means the inventory is not sufficient for the demand.”
Guérette expects prices will keep on climbing at this rate “until two things happen. Either inventory increases and or that demand doesn’t keep increasing or starts to decrease.
“Right now, we don’t have any indication that the demand will decrease. We do, however, have indications that inventory will increase. We’ve had record numbers of permits being pulled for housing construction in Saskatchewan in the first six months of the year. That being said, building a home takes time. So, we’re just waiting for that trickle effect to show up eventually on the inventory side.”
The climbing prices in Saskatchewan compare to the stories coming out of provinces like Ontario or British Columbia, with many reports of struggles in getting homes sold, particularly in the condo market.
Guérette says it is the more affordable places that are seeing prices rise while the less affordable places are seeing price decreases.
“When you take a look at the benchmark price provincially across the country, the sharpest increases in price happen to be the provinces that are more on the affordable side. If you take a look at British Columbia and Ontario, because those are typically the provinces that are less affordable, they’ve actually dipped in price compared to the same point last year. British Columbia dipped by over two per cent, Ontario dipped by almost seven per cent. So, really, it’s those affordable markets that seem to weather the economic storms a little bit better, and that’s really nice to see.”
As for whether the Saskatchewan economy is playing a role, Guerette points to the real estate market itself as an indication of how it is doing.
“Residential real estate is a little bit of the canary in the coal mine because it lets you know how the economy is doing. Are people looking to move in? Are they looking to invest in themselves and buy a home or buy a bigger home? What does that look like? So, if people feel confident, they will invest in their province and set down roots. So, it’s a very good indicator as to how the economy is doing.
“And the reverse, when people are able to set down roots and buy a home, when the economy gets tough, it kind of helps the province weather the storm a little bit. Because once you have a mortgage, it kind of anchors you into that community. It’s harder to just pick up and go. So, you stick around, you tough it out with your community. So, it has sort of like a double benefit there. In Saskatchewan, we also have a higher than national average homeownership rates. So, that’s definitely a good sign for us as well.”
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