Saskatchewan. “cooling” of the housing market with the rise in interest rates

Tight housing supply conditions are supporting price increases in Saskatchewan, while prices are falling in many cities across Canada, according to a new report.

Content of the article

According to a new report from the Saskatchewan Realtors Association, rising interest rates are having a “chilling” effect on Saskatchewan’s real estate market.

Content of the article

The report, released on Thursday, said July sales “decline” to 1,439 units, signifying a 9% year-over-year decline. That said, the report is quick to point out that 2021 was a banner year for sales and that year-to-date 2022 sales of nearly 10,000 units are still well above “long-term averages” for the province.

New listings are also down, but the report says the “pullback” in sales has outpaced the decline in new listings, bringing the market to “more balanced conditions.”

The CEO of the association Chris Guérette says interest rate increases have prompted buyers to look for more affordable options.

The challenge will be the availability of products in the lower price ranges of the market,” he said in the statement.

“Supply levels are improving from the start of the year, however, the year-over-year decline in inventory has been driven by homes priced below $400,000.”

Supply conditions remain “tense”, the report said, noting “wWith less than five months of supply, the market is still experiencing the tightest July conditions since 2009.”

Tight supply conditions are supporting price increases in Saskatchewan, while prices are falling in many cities across Canada, the report said.

The “benchmark price” for July is listed at $335,100, which the report says is slightly higher than the previous month and more than 5% higher than July 2021.

Going forward, further rate hikes are expected as inflation concerns persist in the market,” Guérette said in the statement.

Content of the article

In Regina, 2,379 units have been sold year-to-date, up 1% from “last year’s record pace”. Inventory levels in the city are 13% lower than last year’s levels, according to the report.

Sales in Saskatoon have trended lower this month, adding to a drop of almost 11% since the start of the year.

“Although sales were down, this was off record highs and with over 3,000 sales so far this year, levels are still over 20% above long-term trends for the city” , the statement said.

News seems to be flying towards us faster all the time. From COVID-19 updates to politics and crime and everything in between, it can be hard to keep up. With this in mind, the Regina Leader-Post has created a Afternoon titles newsletter that can be sent to your inbox daily to ensure you are up to date with the most vital news of the day. Click here to subscribe.

Leave a Comment

Your email address will not be published.