Soaring Sales and Shrinking Supplies Define April 2024 Housing Market

April in Saskatchewan witnessed a remarkable surge in real estate activity, with 1,642 homes changing hands, marking a significant 32% increase compared to the same period last year. This boost not only surpasses year-over-year comparisons but also eclipses the 10-year average trends, continuing a pattern of growth as the fourth consecutive month of heightened sales this year. The cumulative effect has propelled the year-to-date sales to nearly 17% above those recorded last year, with notable increases observed across all major regions, especially in the Regina-Moose Mountain and Swift Current-Moose Jaw areas.

Despite a slight increase in new listings which helped bolster the monthly inventory slightly, inventory levels remain tight. They’ve dipped 16% from the previous year and are a stark 40% below the decade’s average. This trend is most pronounced in homes priced under $300,000, though there is some respite in the higher-end market, with more availability in homes listed over $500,000.

Chris Guérette, CEO of the local real estate association, attributes this vigorous market activity to several economic factors. “Saskatchewan’s strong economic and employment growth, coupled with record population numbers, are key drivers behind the sustained demand in our housing market,” Guérette explains. This demand is evident from the continued rise in resale transactions and decreasing vacancy rates in rentals, signaling a robust market that has now outperformed averages for ten straight months.

April also saw a residential benchmark price in Saskatchewan rise to $339,800, a modest increase from March’s $334,500 and nearly 5% higher than the figures from April of the previous year. Price increases were uniform across different property types, with detached and semi-detached homes seeing about a 5% increase, and apartment-style properties climbing by as much as 13%.

“The supply crunch is especially severe in our largest cities, Saskatoon and Regina, where we have less than three months’ worth of inventory. This is creating unprecedented challenges for buyers in these areas,” added Guérette. The situation may lead to further price hikes if the supply does not meet the growing demand.

Regional Developments
In terms of regional sales activity, the Swift Current-Moose Jaw region reported the most significant gains, with a 60% year-over-year increase and sales 23% above the 10-year average. On the other hand, the largest regions, including Regina Moose-Mountain and Saskatoon-Biggar, continued to experience inventory declines, exacerbated by strong sales.

Price Movements Across the Province
April’s price trends also reflected the broader state of the market, with the Swift Current-Moose Jaw and Saskatoon-Biggar regions experiencing the highest monthly price jumps. Moose Jaw, in particular, saw an impressive 11% year-over-year increase in home prices.

Spotlight on Regina and Saskatoon
In Regina, the market dynamics were particularly striking, with 424 homes sold in April—an increase of over 50% from last year and 52% above the decade’s average. Despite more listings, the spike in sales kept inventory from growing, resulting in a 30% year-over-year decrease in available homes.

Saskatoon similarly reported robust activity, with 522 homes sold, marking a nearly 29% increase from last year. Inventory pressures continue, with levels down by 21% year-over-year and almost 50% below the long-term average, pushing the benchmark price to $398,600—an almost 7% increase from the previous April.

As Saskatchewan navigates these challenging but opportune market conditions, potential buyers and sellers are encouraged to stay informed and proactive in their real estate endeavors.

*Information provided by Saskatchewan Real Estate Association