June Real Estate Market Update: Strong Sales Amidst Inventory Challenges in Saskatchewan

Saskatchewan’s real estate market showcased resilience in June with 1,675 reported sales, marking a slight one percent year-over-year decrease but a notable ten percent above the long-term, ten-year average. The market saw a boost in properties priced above $400,000, which almost compensated for the dip in sales of homes priced below $300,000, as ongoing inventory challenges continue to curb even stronger monthly sales figures.

Inventory and New Listings

New listings fell by 14 percent year-over-year and 21 percent compared to the ten-year trend, exacerbating the already tight inventory situation. The overall inventory dropped by 19 percent year-over-year and more than 40 percent compared to long-term trends. Despite these challenges, Saskatchewan maintained above-average sales for the twelfth consecutive month in June.

“While the recent Bank of Canada rate decision was welcome news, higher lending rates and rising home prices continue to spur demand for more affordable housing options,” said Association CEO, Chris Guérette. “This demand, combined with a declining supply in lower price ranges, limits options for prospective buyers and prevents even stronger monthly sales figures. There simply isn’t enough inventory to service this segment of our market right now.”

Benchmark Prices

Saskatchewan’s residential benchmark price reached $343,300 in June, up from $340,400 in May and nearly five percent higher than June 2023. Several communities reported record benchmark prices in June, including:

• Humboldt: $272,500
• Martensville: $398,800
• Melfort: $250,100
• Prince Albert: $251,700
• Saskatoon: $403,500 (surpassing the $400,000 mark for the first time)
• Warman: $463,500

“Housing demand remains strong in Saskatchewan, despite ongoing supply challenges placing significant stress on the more affordable segment of our market, especially in our two largest centres,” Guérette added. “While real estate is local and market conditions vary by region, it can be incredibly challenging for prospective buyers right now.”

Regional Highlights

• Regina-Moose Mountain and Prince Albert: The only regions to report year-over-year sales gains. Year-to-date sales remained above average in all regions outside of the Northern Region.
• Regina-Moose Mountain: Reported 3.09 months of supply.
• Saskatoon-Biggar: Reported 2.09 months of supply.

Price Trends

Home prices trended upwards across many regions in June, with significant monthly gains in:

• Saskatoon-Biggar: Seven percent year-over-year increase.
• Swift Current-Moose Jaw: Five percent year-over-year increase.

The City of Melfort reported the highest year-over-year price gain for the second consecutive month, with prices over 12 percent higher than last year. Saskatoon, Regina, Estevan, Weyburn, Moose Jaw, Swift Current, Humboldt, Meadow Lake, North Battleford, and Prince Albert also reported year-over-year price gains in June.

City of Regina

Regina reported 380 sales in June, a four percent year-over-year increase and 14 percent above the ten-year trend. Inventory levels saw a slight month-over-month improvement, resulting in 2.06 months of supply, up from 1.69 in May. Despite this, inventory levels were still down 30 percent year-over-year and nearly 50 percent below long-term trends. Regina’s benchmark price in June was $318,100, down from $320,000 in May but 0.5 percent above June 2023.

City of Saskatoon

Saskatoon reported 540 sales in June, matching June 2023 figures and 15 percent above the ten-year trend. Limited supply options likely prevented even stronger sales, with inventory levels reaching their lowest point since June 2007. The city reported a 26 percent year-over-year decrease in inventory, remaining over 53 percent below the ten-year average. Saskatoon achieved a record benchmark price of $403,500 in June, up from $397,200 in May and over seven percent above June 2023.

For more detailed insights and personalized advice on the Saskatchewan real estate market, contact me today. I’m here to help you navigate the market and find the perfect property for your needs.