Continuous inventory challenges didn’t preclude strong sales across Saskatchewan

High October sales across Saskatchewan continue, as the Saskatchewan Realtors Association (SRA) reports 1,259 transactions – an 11 per cent year-over-year increase and almost 13 per cent more than long-term, 10-year trends. This is thanks to jumps in the detached, apartment and townhouse/row property types.

 

Low demand and new listings due to higher lending rates

 

Low supply has consistently challenged the province’s regions, and this didn’t change last month. Inventory fell by more than 15 per cent compared to the same time last year, and stayed at over 30 per cent below the 10-year average.

The province held less than five months of supply last month, representing a 23 per cent year-over-year decrease and over 40 per cent below long-term, 10-year averages.

“Higher lending rates continue to impact both demand and new listings in our market, which is likely preventing even stronger October sales numbers,” SRA CEO, Chris Guérette, mentions.

“Prospective move-up buyers are facing challenges amid higher interest rates and ongoing inflationary pressures, and we’re seeing a trickle-down effect with limited supply growth in the lower price ranges, which remain extremely competitive.”

 

Tightest market conditions in six years

 

Last month, the province reported the tightest conditions since 2007. However, home prices stayed relatively stable, with a benchmark price of $327,300 in October, up nearly 2 per cent from the same time last year and down from $328,000 in September.

“Our market continues to demonstrate its resilience, as many have predicted, and we’re once again reporting strong sales despite inventory challenges, inflationary pressures, and higher lending rates,” says Guérette. “Saskatchewan is affordable, we’re growing at the fastest pace in over a century, and we’re well positioned for stable demand in home ownership.”

 

Regional highlights

 

All regions, with the exception of Melville-Yorkton, reported year-over-year sales activity above long-term, 10-year trends. Year-to-date, the Northern Region was the only region without a sales increase.

With just over three months of supply reported in October, the Saskatoon-Biggar region experienced the province’s tightest conditions and the highest year-to-date benchmark price growth. (The city of Saskatoon’s benchmark price hit $382,700, up from $381,900 in September and nearly 4 per cent over October 2022.)