Home sales in Saskatchewan are rising while inventory is plummeting

The Saskatchewan Realtors Association says sales and demand in the province’s housing market are strong, despite inventory levels being a major problem.

“Inventory is at the lowest level we have seen since 2007,” said public affairs director Cole Zawislak. “It would be interesting to see what sales figures would look like if there was more inventory. I think without a doubt it prohibits even stronger sales at this point.”

The downside is the lack of options.

“I think the biggest challenge for homebuyers right now is the inventory piece. There are just fewer of them,” Zawislak added.

The Saskatchewan Realtors Association reported that strong growth in detached home sales was behind the increase in overall sales, accounting for nearly 73 per cent of monthly sales.

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Sales also improved in almost every region of the province, and this year’s sales are on track to be the second highest ever.

“Record population growth, favorable economic conditions and an improving labor market continue to support strong demand in the Saskatchewan housing market,” said Chris Guérette, CEO of the association. “Combined with an easing of interest rates, these factors undoubtedly contribute to a fifteenth consecutive month of above-average sales.”

The Saskatoon and Regina Home Builders’ Association said there is still a long way to go to get building sales back to last year’s levels.

“Labor costs have increased significantly and access to labor is a challenge. So that’s another barrier,” said CEO Nicole Burgess. “And then of course government taxes and high inflation costs, especially when related to new home construction.”

Although September marked the fifteenth straight month of above-average sales in the province, this does not necessarily mean that home prices have become more affordable.

“In September, every city in our province reported year-over-year price increases ranging from as much as 13 percent in Moose Jaw to one and a half percent in Meltfort,” Zawislak said.

Despite this, Saskatchewan remains one of the most affordable jurisdictions in the country. However, home builders and real estate agents warn that the province should not become complacent or overly dependent on this. If the government does not take steps to correct the course, prices may continue to rise.

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