Marketplace

Saskatchewan housing supply challenges persist into January

New listings in January remained well below traditional levels seen in the market in January. While levels are better than what was recorded in December, it did little to change the inventory situation as inventories remain at the lowest January levels since 2012.

January sales in the province reached 748 units, a decline over last year’s elevated levels, but still higher than longer term averages. Lower inventory levels likely contributed to some of the slower sales activity this month.

“Inventories still remain relatively low, but if new listings continue to improve relative to the sales, this should eventually translate into improved supply and better market balance,” said SRA CEO, Chris Guérette.

The months of supply in January rose to just over seven months. While this is a gain compared to last January, overall conditions are still relatively tight for January. Persistently tight market conditions supported further price gains. In January, the unadjusted benchmark price rose to $285,700, nearly seven per cent higher than last January.

The SRA has been working to gain a better understanding of the factors affecting housing supply in Saskatchewan. Everything from labour and supply shortages to land costs, lending rate increases, the pandemic and remote work, along with increased immigration and economic growth. All are contributing to gaps in the housing continuum and the Association is seeking partnerships that foster collaboration in the industry to work and address those gaps.

“With changes expected in lending rates, the 2022 housing market is not expected to see the demand levels as 2021. However, it is still early in the year, and like I have said before, my biggest concern for 2022 is inventory,” said Guérette. Regional Highlights Every region in the province recorded slower sales this month compared to the strong levels recorded last year. While sales in the province remained in line with historical norms, Moose Jaw stood out as the decline in January sales pushed levels well below long term trends and caused a significant rise in the months of supply. While it is too early in the year to put much weight on these figures, Moose Jaw is a place to watch. The months of supply generally trended up toward more balanced conditions across most regions. However, conditions still tightened compared to last year in the regions of Melfort and Saskatoon. Price Trends Benchmark home prices across all the larger centers did record gains compared to last January with year-overyear increases ranging from a low of just under one per cent in Estevan to a high of nearly 16 per cent in Melville. While the year-over-year gains are significant, it is important to remember that prices started to see more significant gains last year in the spring. Nonetheless, most of the centers recorded further price gains in January over December levels. The largest unadjusted monthly gain occurred in Meadow Lake at over five per cent.