Key Takeaways
Robust Sales Activity: Saskatchewan's real estate market saw a remarkable 17% increase in sales compared to last year, with figures soaring 24% above the decade's average.
Historically Low Inventory: For the eighth month in a row, sales have outpaced new listings, leading to a significant 17% drop in available properties - the lowest February inventory since 2006.
Price Escalation Across the Board: The province's benchmark home price climbed to $330,800, marking a substantial rise from the previous month and a near 5% increase year-over-year.
Regional Variations Highlighted: Areas like Swift Current-Moose Jaw and Regina-Moose Mountain reported the most significant sales jumps, while price increases were most notable in Saskatoon-Biggar and Regina-Moose Mountain regions.
Market Challenges Persist: With spring on the horizon, the current inventory crunch shows no signs of easing, potentially impacting future price trends.
Market Performance in Detail
Sales and Inventory Dynamics
Saskatchewan's housing market in February 2024 exhibited impressive resilience and growth. With 999 homes changing hands, the market outperformed both last year's figures and long-term averages. This trend of robust sales has been ongoing, preventing any significant addition to the housing stock. As a result, the inventory of available homes has plummeted to a level unseen since February 2006, a clear indicator of the market's strength and the heightened competition among buyers.
Chris Guérette, CEO of the Saskatchewan Real Estate Association, pointed out the continued dominance of detached home sales in driving the market's momentum. The rapid pace at which buyers are snapping up new listings is even more pronounced in the province's larger urban centers, further amplifying the inventory scarcity.
Price Movements
February witnessed a noteworthy upswing in property prices across Saskatchewan, with the provincial benchmark price escalating to $330,800, an increase from January's $319,600. This upward trajectory is reflected across various housing types, especially in the detached homes sector, which saw the most significant month-over-month price growth. Highlighting the strength of this surge, Guérette noted the remarkable rise in benchmark prices, with some areas witnessing monthly hikes surpassing $15,000.
Regional Spotlight
The real estate landscape varies considerably across Saskatchewan, with certain regions experiencing more pronounced growth. Notably, the Swift Current-Moose Jaw and Regina-Moose Mountain areas led in sales activity, while the Saskatoon-Biggar and Regina-Moose Mountain regions saw the highest price gains. In cities like Moose Jaw and Meadow Lake, prices in February 2024 were almost 10% higher than the previous year, showcasing significant market vitality.
Focus on Regina and Saskatoon
Regina: The capital city reported 273 property sales in February, marking a substantial increase from the year before and significantly above the ten-year average. Despite the expectation of seasonal inventory gains, the intense sales activity led to a 25% drop in available homes, with prices reaching a benchmark of $310,600.
Saskatoon: Saskatoon, also known as Bridge City, mirrored this trend with 309 sales, indicating a robust market performance. The city faced a notable inventory decline, while the benchmark price rose to $388,300, underscoring the continued demand for homes in the area.
Looking Ahead
As Saskatchewan heads into the traditionally busy spring market, the current inventory constraints and the resultant pricing pressures are poised to remain central themes. The real estate association remains vigilant, ready to navigate the challenges and opportunities that lie ahead in this dynamic market landscape.
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