Saskatchewan real estate market remains steady
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The Saskatchewan real estate market remains strong. Across the province, there were 1,853 homes sold (up over 67% from last May and up 88.9% year-to-date, going from 3,978 to 7,513), new listings were up over 14% (and up 26.7% year-to-date, going from 2,019 to 2,556,) and the MLS® Home Price Index composite was up 11.2% (up 8.4% year-to-date, going from $265,800 to $288,300). Inventories—a measure of how many months until there are no active listings given current sales levels— were also down in all 24 markets that the SRA tracks.
“May was about as strong April,” said Chris Gbekorbu, SRA’s Economic Analyst. This month-over-month leveling off in activity is expected. “Markets have been gaining momentum since last May when some pandemic restrictions were lifted. And at some point, things need to start to steady,” said Gbekorbu. But market indicators suggest that the current pace should hold.
Strong demand combined with falling inventory levels continues to put upward pressure on prices. The MLS® Home Price Index (HPI) composite was up in 13 of the 15 markets where these data are available (with Estevan and Weyburn showing declines of 5.9% and 1.8% respectively, while Swift Current and Meadow Lake saw the greatest increases), while the number of sales were up in 23 of 24 markets.
It’s still too early to tell what kind of an impact the new mortgage rules will have on markets. According to Gbekorbu, “When new regulations were introduced in 2018, we saw a jump in sales right before the new rules came into effect followed by a drop in sales after.” While sales and prices may fall a little in the coming months as buyers reevaluate their finances, the drop is likely to be temporary. “The rules introduced in 2018 saw prices fall just over 1% across the province, but they’ve continued climbing,” said Gbekorbu.
BOARD & ASSOCIATION INFORMATION
The Saskatchewan REALTORS® Association (SRA) is a professional body of more than 700 REALTORS® representing 90 member offices in Southern Saskatchewan. The SRA is dedicated to enhancing the value, integrity and expertise of its REALTOR® members. Our REALTORS® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and standards of business practice. The SRA also operates a state-of-the-art Multiple Listing Service® System.
Saskatchewan REALTORS® Association