SUPPLY LEVELS AT LOWEST LEVELS RECORDED IN AUGUST IN NEARLY A DECADE
September 06, 2022
For immediate release:
August sales reached 1,466 units, reflecting a year-over-year decline of three percent. While sales continue to ease relative to last year, year-to-date sales of over 11,000 units remain well above long-term averages for the province. As supply levels in the lower price ranges continue to fall, we see a decline in sales driven largely by homes priced below $500,000.
New listings fell for the second consecutive month, resulting in a slight reduction in inventories. While the monthly pullback is consistent with seasonal trends, supply levels remain at their lowest levels recorded in August in nearly a decade and significantly below 10-year averages.
“Supply remains a challenge in the market and while we are seeing some signs of improvement, the gains are in the upper end of the market and have not offset the declining supply of more affordable homes,” said Saskatchewan REALTORS® Association CEO Chris Guérette. “Higher lending rates are having a cooling impact on demand, but the challenge continues to be having enough supply available in the lower price ranges in our market.”
The pullback in inventory levels resulted in a slight drop in the months of supply, which dipped below 5 months in August. Though supply levels remain relatively low for this time of year, a continued shift toward more balanced conditions helped take pressure off home prices. The benchmark price was $334,100 in August, slightly lower than the previous month and five per cent higher than last August.
“Speculation over further rate increases and inflationary pressures are contributing to housing market corrections in many markets across the country,” said Guérette. “While Saskatchewan is experiencing a slight pullback in sales, we continue to expect that we will fare better than other regions of the country.”
August sales eased on a year-to-date basis across all regions of the province except for Swift Current, where activity remained comparable to the previous year. Year-over-year pullbacks in Melfort, Moose Jaw, North Battleford, Prince Albert, Saskatoon and South East Saskatchewan were nearly offset by gains in Swift Current, Regina and Yorkton. Sales continue to ease relative to 2021, a record year, but remain well above long-term trends.
Inventory levels continue to decrease across the province relative to last year. In regions that saw sales increases, declining inventories caused the months of supply to decline significantly when compared to the previous year. While recent market adjustments are notable, potential future impacts on price will ultimately depend on whether tighter market conditions persist into the fall market.
Despite some monthly shifts, prices generally remain well above 2021 levels throughout the larger centers in the province. The Yorkton region is an exception, where August prices were lower on a year-over-year basis. However, Yorkton saw significant appreciation in home prices in the second half of last year and despite recent fluctuations, prices remain significantly higher than pre-pandemic levels. On a year-to-date average, benchmark prices have risen across all tracked centers in the province, with gains exceeding seven per cent in Humboldt, Melfort, Melville and Warman.
City of Regina
Sales in Regina remained strong this month, rising above 2021 levels and well above long-term trends. Despite slower sales seen across the province, sales in Regina reached record highs on a year-to-date basis.
Despite some recent pullbacks, new listings have generally remained above 10-year trends in the city. However, the recent string of sales compared to the new listings on the market have weighed on inventories, which decreased on a year-over-year basis. Regina also experienced a decreasing months of supply but conditions are not as tight as what was seen earlier in the year.
The benchmark price in August was $327,000, a decline relative to the previous month. Despite the adjustment, not unusual for this time of year, benchmark prices remain nearly three per cent higher on a year-over-year basis.
City of Saskatoon
Improved sales in homes priced above $500,000 were not enough to offset the pullbacks recorded in the lower end of the market this month, as sales declined by 11 per cent year-to-date. The decline in sales is in part related to shrinking inventory levels for homes priced below $500,000. Overall inventory levels are 20 per cent lower than last year and 33 per cent below the traditional average. In August, 77 per cent of inventory was below $500,000, a segment of the market that reflected nearly 84 per cent at this time last year.
As conditions remain relatively tight in the Saskatoon market, the benchmark price was $383,300, similar to last month and nearly seven per cent higher than last year.
For more information:
Director of Public Affairs
Saskatchewan REALTORS® Association