Saskatchewan Real Estate Trends: December 2023 Overview

Saskatchewan Real Estate Trends: December 2023 Overview

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.

The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.