Saskatchewan Housing Market: May Sales Surge Amidst Inventory Challenges

Saskatchewan witnessed a notable uptick in housing activity in May, with a reported 1,841 sales, marking a six percent increase from the previous year and a significant 24 percent above the long-term, 10-year averages. The strength in sales was evident across various regions of the province, with the Swift Current-Moose Jaw and Northern regions experiencing the most substantial year-over-year gains.

Sales and Inventory Dynamics

As expected for the season, there was an increase in new listings month-over-month. However, the robust sales numbers have kept inventory levels constrained, maintaining the lowest levels since 2008. This inventory crunch is particularly pronounced in homes priced below $300,000, which continues to be a highly competitive segment of the market.

“Our housing market continues to report strong monthly sales figures despite persistent inventory challenges,” said Chris Guérette, CEO of the Saskatchewan Realtors Association. “An eleventh consecutive month of above-average sales is quite impressive when you consider how challenging it can be for prospective buyers in some markets in our province right now.”

Price Trends

The residential benchmark price in Saskatchewan reached $340,400 in May, up from $339,800 in April and over four percent higher than in May 2023. Price increases were observed across all property types, with the most significant gains in apartment and row/townhouse-style properties.

Guérette noted, “While the provincial months of supply fell below three months in May, conditions remain much tighter in our two largest centers – as Regina and Saskatoon are again reporting less than two months of supply. With further rate cuts on the horizon likely to spur additional demand – and no immediate inventory relief in sight – we expect tight conditions to continue to place upward pressure on prices across the province.”

Regional Highlights

Year-to-date sales levels showed improvement across all regions of Saskatchewan in May, with notable gains in the Regina-Moose Mountain, Saskatoon-Bigger, and Swift Current-Moose Jaw regions. Strong monthly sales further depleted inventory levels in the province’s two largest regions, resulting in the Regina-Moose Mountain and Saskatoon-Bigger regions reporting the tightest market conditions with 2.59 and 2.04 months of supply, respectively.

City-Specific Insights

Regina
The City of Regina reported 440 sales in May, a five percent increase year-over-year and 32 percent above long-term trends. Despite a slight increase in new listings, strong sales have kept inventory levels nearly 50 percent below long-term trends, resulting in just 1.69 months of supply. Regina’s benchmark price reached $320,000 in May, slightly up from $319,800 in April and two percent higher than in May 2023.

Saskatoon
Saskatoon recorded 573 sales in May, marking a seven percent year-over-year increase and 28 percent above long-term, 10-year averages. Inventory levels in Saskatoon fell by 21 percent year-over-year and remain nearly 50 percent below long-term trends. The benchmark price in Saskatoon was $397,200 in May, down slightly from $398,600 in April but nearly six percent higher than in May 2023.

Saskatchewan’s housing market remains resilient with strong sales figures amidst ongoing inventory challenges. As demand continues to outpace supply, particularly in the affordable housing segment, prices are expected to remain under upward pressure. With potential rate cuts on the horizon, the market may see further demand increases, maintaining the competitive environment for prospective buyers.