Saskatchewan Examiner

Home prices in Saskatoon have reached new highs due to a lack of supply

Sales are slowing, but a lack of supply is pushing Saskatoon home prices to new highs.

Key Takeaways:

  • As per the latest data from the Saskatchewan Realtors Association, home sales in Saskatoon have slowed, but property prices have continued to rise to new highs (SRA).
  • According to the research, the Queen City benchmark price grew by 4% year over year to $271,100.

As per the Saskatchewan Realtors Association’s latest report, home sales in Saskatoon have slowed, but property values have continued to increase to new highs (SRA).

According to the report, Saskatoon’s sales have dropped 13% yearly. However, the values remain above long-term averages.

According to the analysis, rising mortgage rates should reduce demand for properties in the area, but a lack of supply prevents prices from lowering.

Also read: Saskatchewan adds six new intensive care unit (ICU) beds to 3 hospitals

“In April, there were just 665 new listings, down 30% from the previous April and almost 18% below the average levels for this time of year.” The drop in new listings compared to sales has resulted in further inventory reductions, ensuring that the market continues to favor the sellers with only two months of supply,” according to the research.

Both inventory and supplies for April are at their lowest levels since 2008. Last month, this helped propel the benchmark price in Saskatoon to a new high of $338,500.

“While price increases have occurred in single-family and condominium markets, year-to-date condominium prices remain below 2015 highs,” the research states.

Sales are slowing, but a lack of supply is pushing Saskatoon home prices to new highs.
Sales are slowing, but a lack of supply is pushing Saskatoon home prices to new highs. Image from CP24

According to the research, tighter market conditions keep housing prices in Regina up.

According to the report, the benchmark price in Queen City increased by 4% year over year to $271,100.

“New listings increased compared to levels regained during the previous several months, supporting some monthly sales activity rises.” However, sales and new listings are still lower than last year’s levels, both for April and the entire year.”

In a media release, SRA CEO Chris Guérette noted, “While increased lending rates are certainly contributing to some of the declines in sales, another difficulty constraining sales has been the decrease in supply choice, especially in the province’s bigger cities.”

Source: CTV News

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