The sales and prices of real estate across the country are surging.
Unsurprisingly large urban centers like Toronto, Montreal, and Vancouver are behind the push. However, recently trends have changed due to the effects of the Covid-19 pandemic and low interest rates. The combination of these two factors has resulted in a surge in demand in more rural places and small towns and cities across the country.
Admittedly, the national averages on housing prices can be misleading at times. You may get caught up in those numbers and think that all markets across the nation are properly represented by that value. However, this isn’t always the case.
The truth of the matter is that some smaller markets are be doing quite well despite what the national averages might suggest. Take Saskatchewan, for instance. The province usually tends to be an outlier in regards to national figures.
However, even with its number presenting below the average price of houses in surrounding provinces, Saskatchewan continues to post remarkable figures.
Below, we’ll look at Regina’s housing market and how it fares in comparison to other markets.
A Look into Regina’s Housing Market
Admittedly, the real estate market in Saskatchewan isn’t quite as steep as other parts of the country. Be that as it may, it’s still heating up. Regina, in particular, has seen a surge in residential sales since the start of the year.
According to the Saskatchewan Realtors Association (SRA), real estate sales in Regina soared by up to 70%. Specifically, the market saw an increase in sales from 213 in March of 2020 to 362 in March of 2021.
This is not only a huge increase in a 12-month period for the city of Regina. However, if we look further back we see a 50.2% and 48.7% increase over the 5-year and 10-year average respectively.
What’s more, this growth didn’t stop in March. It continued through to April as home sales in Regina increased even further to 392 during that month. This was an increase of over 172% when compared to the same period last year.
As for the year-to-date sales, they shot up by a whopping 91% compared to the first four months of 2020; surging from 621 units to a staggering 1,186 units.
And with the sales increasing, so did the housing prices. According to the measurements conducted by the MLS Home Price Index (HPI), the price for a single-family home rose by around 8.5% during that period. That is, from $241,300 to $261,800 for a benchmark single-family home.
While this increase isn’t as extreme compared to what other larger markets have experienced it is still quite notable.
You might think that higher prices would have an impact on people’s buying habits. However, even with increasing home prices, demand has managed to remain consistent. This can be chiefly attributed to the volumes of homes being sold, which for Regina more than doubled.
In the period spanning April 2020 and April 2021, the sales volume went up from $43.9 million to $135.0 million, representing a 207.3% increase.
The right equilibrium between market demand and supply is key to keeping housing prices low. The number of active listings in Regina have gone down slightly. Nonetheless, levels remain robust enough to ensure there won’t be any drastic increases in prices in the near future.
But while active listings have fallen slightly, they still represent a 129.8% increase over last year. According to the Saskatchewan Realtor Association, the listings rose to 655 from just 285.
Typically, in Regina, a house will stay on the market for an average of 52 days. But as things stand, a home will now stay for 12 days less on average based on current real estate market trends.
What is Driving Demand for Regina Real Estate?
Currently, those driving up demand in the Regina real estate market are move-up buyers. This is expected to continue through to the end of this year. The most popular property type with move-up buyers is the one-storey detached home.
Typically, young couples make up the largest proportion of first-time home buyers. And this demographic is usually particularly interested in single-detached homes. In Regina, single-detached homes normally cost anywhere between $250,000 and $350,000.
The condominium market in Regina, Saskatchewan is mostly popular with single homebuyers. And although the demand for condos has fallen slightly, other markets appear to be faring well. Families, on the other hand, remain keen on buying homes with more space. But while the supply has been on an upswing, the same cannot be said about the demand.
What Should We Expect Moving Forward?
Experts expect the Regina real estate market to continue posting positive numbers. This is according to a recent report released by the Canadian Mortgage and Housing Corporation (CMHC) in May 2021.
There you have it, an overview of Regina’s housing market. If you have more questions, please get in touch with Jennica George. I am an experienced Regina realtor who can help you buy the home you want, in the neighbourhood you want, for the price you want it at.