Fear of a Housing Bubble Ignores Local Realities
Fear of a National Housing Bubble Ignores Local Realities Written by SRA Economist, Chris Gbekobu Last week, BNN Bloomberg released an interview with David Rosenberg where he suggested that the current Canadian real estate market “[may] be one of the biggest bubbles of all time”. Citing rising housing prices with little to no income growth and an increased unemployment rate due to COVID, Rosenberg feels that the recent run-up in housing prices has been pushed beyond sustainable levels. There are two issues with Rosenberg’s concern. First, although he was speaking about Canada in general, he seems to have been speaking about Toronto and Vancouver in particular (rather than smaller markets and ignoring the fact that real estate is highly local). Second, he was speaking about buying property as an investment (rather than as a home and ignoring the fact that most people don’t think of a home as an investment). While it’s true that on average, house prices in Saskatchewan rose 1.9% year-over-year [...]
Saskatchewan Real Estate Remains Strong
MediaRelease-2021-03-02 March 04, 2021 For immediate release: The Saskatchewan real estate market continues to build on January’s momentum and outperformed last February. Across the province, sales were up over 74% from last February (and up 62.3% year-to-date, going from 663 to 1,157), new listings were essentially flat (and down 2.1% year-to-date, going from 1,775 to 1,773,) and the median sale price was up close to 3% (up 1.9% year-to-date, going from $265,000 to $272,000. Inventories were also down in all 19 of the markets that the SRA tracks. Median sales prices were up in 13 of the 19 markets that the SRA tracks (with Moose Jaw and Yorkton seeing the strongest declines while Estevan and Weyburn saw the greatest increases), while the number of sales were up in 18 of 19 markets. “We’re seeing inventories dry up as people keep buying. At the same time, the number of new listings [...]
Saskatchewan Real Estate Starts 2021 Off Stronger Than It Has In Nine Years
MediaRelease-2021-02-02 February 03, 2021 For immediate release: Building off the momentum seen in 2020, the Saskatchewan real estate market started 2021 off strong. Across the province, sales were up over 49% from last January (going from 616 to 919), new listings were down just over 5% (going from 1,855 to 1,758). Inventories were also down in 18 of the 19 markets that the SRA tracks. “We haven’t seen a January like this since 2012,” said SRA Economic Analyst Chris Gbekorbu. With new listings down 10% from their historical averages, there are fewer houses being put on the market. At the same time, the rising number of sales combined with falling inventory suggests strong demand for what housing is available. This could put upward pressure on prices and help to encourage potential sellers. “Although it is only one month and another COVID-like event could slow things down again like it did [...]
Saskatchewan Real Estate Finishes 2020 on a High
Saskatchewan Real Estate Finishes 2020 on a High January 06, 2021 For immediate release: MediaRelease-2021-01-06 The Saskatchewan real estate market had another strong month and ended 2020 at levels not seen since 2014. Across the province, sales were up over 58% from last December, going from 590 to 935, new listings were up close to 13%, going from 1,005 to 1,132, and the median sale price was up over 1%, going from $253,750 to $257,500. Inventories were also down in all 19 markets that the SRA tracks. Despite increased restrictions coming into effect in December to help reduce the rising spread of COVID throughout the province, the market continued to show considerable strength. “We’d already reached over 33% of last December’s sales in the first week of this December,” said SRA Economic Analyst Chris Gbekorbu, “so I figured we’d have another strong month to finish off the year.” Median [...]
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Saskatchewan Housing Sales Continue To Defy Earlier Predictions
December 4, 2020 For immediate release MediaRelease-2020-12-01 Continuing to defy earlier predictions of a weak housing market due to COVID, the Saskatchewan real estate market remains strong and has outperformed last year’s market. Across the province, sales were up over 54% from last November (and up 22.7% year-to-date), going from 697 to 1,077, new listings were down just over 4% (and down 14.6% year-to-date), going from 1,499 to 1,437) and the median sale price was up close to 1% (and essentially unchanged year-to-date), going from $265,000 to $267,574. Inventories were also down in 18 of the 19 markets that the SRA tracks. Increased restrictions in place due to the rise in COVID cases throughout the province hasn’t deterred people from buying and selling real estate. “Even before the new restrictions were in place, we had our members suspend open houses again and required them to wear masks with clients”, said [...]