REGINA — Saskatchewan’s housing market continues to face increasing pressures.
In a report released by the Saskatchewan Realtors Association on Monday, continued low inventory levels drove average home prices to new record highs.
Saskatchewan benchmark in March rose to $374,000, up from $363,000 in February.
This increase was attributed to 1,808 new listings in March, 25 per cent below long-term average combined with the province seeing 1,256 home sales in the same month.
“We are seeing record prices not because demand is accelerating, but because there simply are not enough homes available. Saskatchewan has long been one of the most affordable places to buy a home in Canada, but that advantage is being tested in real time,” said Saskatchewan Realtors Association CEO Chris Guérette.
Compared to national housing markets seeing slowing markets with increased inventory, Saskatchewan is still seeing demand with a lack of housing supply, noted Guérette.
“It’s the opposite. Demand is still there, but supply hasn’t kept pace. That imbalance is what’s driving price growth and putting pressure on buyers, particularly those trying to enter the market for the first time.”
One factor behind low supply is the slow push out of winter the province is experiencing this year.
“[This] has delayed the typical influx of new listings seen at this time of year, limiting the amount of fresh inventory entering the market during a critical period,” noted the association.
A continued shortage of housing supply is expected to drive prices higher and further strain affordability.
“Without a meaningful increase in listings, we will continue to see upward pressure on prices and increasing challenges around affordability,” said Guérette.
Trends in major cities
The City of Regina saw 313 sales last month, a five per cent increase year-over-year.
However, new listings were down four per cent year-over-year and 20 per cent compared to the 10 year average.
As of March, the average home price in Regina sits at $343,700.
Meanwhile, Saskatoon reported a four per cent decrease year-over-year in sales.
On the flip-side, new listing improved in March, but were still down 10 per cent compared to the 10-year average.
The current average home price in Saskatoon as of March is $435,200.
