The Saskatchewan housing market continued its strong performance in March, defying broader national trends and setting the stage for a potentially challenging spring market. Despite economic uncertainties, the province saw a remarkable surge in activity, highlighting its market resilience.
March Market Highlights: High Demand Meets Low Supply
Here’s a breakdown of the key trends from March:
Soaring Sales: A total of 1,277 homes were sold across Saskatchewan, marking an impressive 8% increase year-over-year and sitting 13% above the long-term 10-year average. This marks the 21st consecutive month of above-average sales, indicating sustained buyer demand.
Shrinking Listings: Contrasting the high sales volume, new listings actually decreased by 2% year-over-year. More significantly, they remain nearly 30% below the 10-year average.
Inventory Crunch: The combination of high sales and fewer new properties coming onto the market is putting significant pressure on inventory levels. While total inventory saw a slight month-over-month increase to 4,023 units, it’s down a substantial 21% compared to March 2024 and sits almost 50% below the 10-year average.
Major Centers Facing Severe Shortages
The inventory situation is particularly acute in Saskatchewan’s largest cities:
Saskatoon: Entering April with less than one month (0.98) of housing supply when accounting for conditional sales. This is the lowest level heading into April since 2007.
Regina: Also facing tight conditions, with just 1.29 months of supply.
These historically low supply levels, especially heading into the typically busy spring season, signal a highly competitive market for buyers.
Prices Continue to Climb
Predictably, the strong demand and limited supply are driving prices upward across the province.
The provincial residential benchmark price reached $353,600 in March, up from $344,700 in February and representing a more than 6% increase compared to March 2024.
Most cities reported year-over-year price gains, with some seeing double-digit increases:
Melfort: +22%
Prince Albert: +11.7%
North Battleford: +11.5%
Humboldt: +11.1%
Moose Jaw: +10.7%
Regina: Benchmark price rose to a near-record high of $326,300 (+4% YoY).
Saskatoon: Set a new record benchmark price of $415,900, over $25,000 higher than March 2024.
Navigating the Spring Market: Advice for Buyers and Sellers
As Association CEO Chris Guérette noted, “The spring market is here. We continue to see near-record demand, and there isn’t enough inventory to meet that demand right now.”
What does this mean for you?
Buyers: Expect competition, potentially leading to multiple offer situations. Be prepared to act quickly and have your financing pre-approved. Patience will be key.
Sellers: Current conditions favour sellers, but accurate pricing and strategic marketing remain crucial.
Guérette’s advice is clear: “it’s going to be very challenging, patience is essential, and the expertise of a real estate professional is more crucial than ever.”
Conclusion
The Saskatchewan housing market is entering the spring season with significant momentum, characterized by high buyer demand and critically low inventory levels, resulting in rising prices. Whether you are looking to buy or sell in this dynamic market, understanding these conditions and working with an experienced real estate professional will be vital for success.
Stay tuned for more market updates!
All data comes from SRA
