You will notice a change in the benchmark home price this month. Benchmark home prices reflect a typical home to ensure price movements better reflect market activity. Over time the typical home evolves and the MLS® Home Price Index also evolves to ensure the data remains in line with modern housing trends. As of June 1, the benchmark price was recalculated based on a modern typical home. Details on the model adjustments made can be found here .
HOME PRICES CONTINUE TO RISE DESPITE SLOWER SALES
July 06, 2022
For immediate release:
June sales eased over last year’s record levels. However, with 1,808 sales this month, activity is still over 20 percent stronger than long term trends for the province.
“While sales have been trending down in the province this year, we cannot lose sight of the fact that sales levels are still amongst the highest levels ever recorded in our market and these higher relative levels are still being achieved despite the sharp rise in lending rates,” comments Chris Guérette, CEO of the Association.
For the second month in a row, we have seen the level of new listings improve to levels that are consistent with the 10-year average. This has helped support some monthly gains in inventory levels. However, with only 6,893 units available in inventory, supply levels are still 27 per cent lower than traditional levels, and the month of supply remains amongst the lowest levels reported for June.
Persistently tight market conditions continue to place upward pressure on home prices. In June the unadjusted benchmark price rose to $333,400 nearly one percent higher than last month and nearly five percent higher than last year’s levels.
“Moving forward we do anticipate that further rate increases will weigh on sales and eventually support more balanced conditions. However, Saskatchewan continues to benefit from relative affordability, improving migration and job growth, which should help offset some of the impact that higher rates would have on the housing market.”
The Saskatchewan REALTORS® Association produces monthly real estate statistics to provide insight to decision makers in our province on how best to manage matters that affect growth, housing, and the creation of wealth. It also proudly works with the Saskatchewan Housing Continuum Network to collaborate with like-minded industries.
# # #
While June sales eased across most regions in the province, Prince Albert, Yorkton, and Regina reported a rise in June sales compared to last year. Some of this was possible thanks to recent gains in new listings. Despite some monthly variation, most regions have recorded a pullback in year-to-date sales, but like provincial totals most areas are seeing transactions levels well above long-term trends.
While there have been some improvements in new listings depending on the location, it has generally not been enough to cause significant shifts in inventory levels, as all areas are still facing less inventory this June compared to last year and are below long-term trends.
Low levels of supply compared to the demand in the market has continued to place upward price pressure in the market. Home prices generally trended up in June relative to earlier months in the year and last year’s levels. When considering the year-to-date benchmark price, price growth has ranged from relatively stable prices in Moose Jaw to year over year gains that have neared 10 percent in both Melville and Warman.
City of Saskatoon
Sales in June eased over last year’s record, contributing to the year-to-date decline of nearly 12 percent. While sales have eased, with 2,584 sales so far this year, levels are still amongst the highest levels recorded for the city.
New listings continue to trend up this month relative to the sales causing the sale to new listings ratio to ease to 56 per cent. This helped support modest gains in inventory levels compared to earlier in the year, however, inventory levels continue to remain well below last year’s levels and long-term trends for the city.
Relatively strong demand combined with the inventory in the market has kept the months of supply exceptionally low. This has resulted in further upward pressure on prices this month. In June the benchmark price reached $380,200, over one percent higher than last month and a five percent gain relative to last year. Much of the price growth continues to be driven by the detached market.
City of Regina
Slower sales in June were not enough to derail earlier gains as year-to-date sales totaled 2,023 units, setting a record high. A decline in the sales to new listings ratio did help support modest improvements in inventory levels compared to earlier in the year. Slower sales coupled with slightly higher inventories was enough to push the months of supply back above three months.
While the shift to more balanced conditions did help slow the pace of price growth in the market, prices continued to rise this month. In June the benchmark price reached $329,100 up from the previous month and over three percent higher than levels reported last year.
For more information:
Chief Executive Officer
Saskatchewan REALTORS® Association