Saskatchewan Real Estate Trends: December 2023 Overview
Key Takeaways
- Consistent Growth: Saskatchewan has marked its sixth month of sustained above-average property sales, with December showing a 19% year-over-year increase.
- Annual Comparison: Despite robust second-half performance, 2023 concluded with a 3% decline in sales compared to 2022, largely due to decreased detached home sales.
- Inventory Challenges: The province faced a significant drop in inventory, over 16% from the previous year, with affordable housing segments hit hardest.
- Market Dynamics: High interest rates are pushing buyers towards more economically priced housing options, exacerbating the inventory crunch in these segments.
- Regional Variances: While some regions reported balanced conditions, others like Saskatoon and Regina experienced tight market conditions with varying price trends.
Market Dynamics and Inventory Insights
Consistent Above-Average Sales Performance
Saskatchewan's real estate market closed the year on a high note, achieving above-average sales for the sixth consecutive month. December witnessed 757 property transactions across the province, marking a 19% increase over the same period last year and surpassing the decade-long average by 13%.
Yearly Sales Overview
The latter half of 2023's sales surge could not fully compensate for earlier downturns, resulting in a 3% annual sales reduction compared to 2022. This decline was anticipated as sales volumes realigned with pre-pandemic levels, driven primarily by a slowdown in detached home sales. Conversely, apartments and semi-detached homes saw improved sales, contributing positively to the monthly totals.
Inventory and Listing Trends
A notable decrease in new listings coupled with robust sales led to a significant reduction in available inventory throughout the year. December ended with inventory levels declining more than 16% year-over-year, standing nearly 35% below the ten-year average.
Chris Guèrette, the Association's CEO, highlighted the impact of rising lending rates on market dynamics, pushing buyers towards more affordable housing options amid a scarcity of such inventory.
Price Dynamics
The push towards more affordable housing options has led to increased price pressure on apartments, row houses, and semi-detached homes. Detached homes maintained stable pricing year over year. The province recorded a benchmark price of $319,300 in December, a slight decrease from November but still nearly 2% higher than the previous year.
Regional Market Highlights and Price Trends
Regional Sales and Inventory
Across Saskatchewan, most regions experienced a slight year-to-date sales decline but saw increases in year-over-year sales activity. The exception was the Northern Region. Inventory challenges persisted across the board due to a decrease in new listings.
Specific Regional Insights
- Saskatoon-Biggar and Regina-Moose Mountain regions faced the most significant supply constraints.
- Swift Current-Moose Jaw, Yorkton-Melville, and Prince Albert regions observed a move towards more balanced market conditions.
Price Variations Across the Province
While some communities reported price increases, others faced declines. Notably, Humboldt, Meadow Lake, and Saskatoon saw significant year-over-year price gains, whereas Estevan, Regina, Swift Current, and Weyburn experienced decreases.
Focus on Regina and Saskatoon
Regina saw a notable 25% increase in December sales year-over-year, despite a 12% drop in new listings for 2023, leading to further inventory reductions. However, this activity didn't prevent a price adjustment, with the benchmark price falling to $299,800 in December.
Saskatoon's real estate market also reported strong sales with a 14% year-over-year increase in December. The city's inventory levels have significantly declined, supporting modest price growth to a benchmark of $374,100 in December, a 5% increase from the previous year.
