SASKATCHEWAN HOUSING SALES CONTINUE TO DEFY EARLIER PREDICTIONS
December 2, 2020
Continuing to defy earlier predictions of a weak housing market due to COVID, the Saskatchewan real estate market remains strong and has outperformed last year’s market. Across the province, sales were up over 54% from last November (and up 22.7% year-to-date), going from 697 to 1,077, new listings were down just over 4% (and down 14.6% year-to-date), going from 1,499 to 1,437) and the median sale price was up close to 1% (and essentially unchanged year-to-date), going from $265,000 to $267,574. Inventories were also down in 18 of the 19 markets that the SRA tracks.
Increased restrictions in place due to the rise in COVID cases throughout the province hasn’t deterred people from buying and selling real estate. “Even before the new restrictions were in place, we had our members suspend open houses again and required them to wear masks with clients”, said SRA CEO Jason Yochim, “to help make sure that people stayed safe while buying and selling homes.” And these safety precautions have helped to instill confidence in the market, making it easier for people to be in the market.
Median sales prices were up in 11 of the 19 markets that the SRA tracks (with Melfort and Weyburn seeing the strongest declines while Swift Current and the Yorkton Region saw the greatest increases), while the number of sales were up in 18 of 19 markets.
The strong real estate recovery seen after the province went into lockdown from March to May has continued to carry over into November. “Although November and December are generally much slower compared with the summer months, over 50% more sales than last November is simply amazing,” said Yochim. As the year draws to a close and inventory levels continue to be at low throughout much of the province, the steps that the SRA has taken to ensure the safety of the real estate market, combined with continued pent-up demand, could help to make this one of the best years for real estate in a long time.
Sales in Saskatoon were up 47.3%, going from 243 in November 2019 to 358 in November 2020, and up 47.0% in the overall region, going from 317 to 466. In Saskatoon, sales were 37.3% above the 5-year average (and 32.1% above the 10-year average), while in the larger region, sales were 31.9% above the 5-year average (and 24.3% above the 10-year average). Year-to-Date (YTD) sales in Saskatoon rose 17.2% over last year, increasing from 3,411 to 3,998, while YTD sales in the larger region rose 22.0%, going from 4,575 to 5,580.
Sales volume was up 44.3% in the city, going from $80.9M to $116.8M in 2020 (31.3% above the 5-year average, and 24.4% above the 10-year average). YTD sales volume in the city was $1,376.5M, an increase of 21.8% from last year. In the region, sales volume was up 27.5%, going from $1,440.7M to $1,837.3M (30.9% above the 5-year average and 24.1% above the 10-year average). YTD sales volume increased 27.5% in the region, rising from $1,440.7M in 2019 to $1,837.3M in 2020.
In Saskatoon, the number of new listings in November 2020 fell 6.0%, going from 451 to 424 (20.2% below the 5-year average and 20.0% below the 10-year average), while in the region, new listings fell 9.5% from 629 last year to 569 this year (22.5% below the 5-year average and 22.6% below the 10-year average). YTD new listings in the city fell 3.7%, going from 7,443 to 7,167, while in the larger region, the number of new listings to date fell 6.4%, going from 10,874 to 10,179. Active listings fell 22.4% in Saskatoon (down from 1,528 to 1,186) and fell 26.7% in the region (down from 2,830 to 2,075).
Inventory in Saskatoon stood at 3.3 months (which is 47.3% below the level last year and 49.6% below the 5-year average), while the sales to listing ratio was 84.4%, suggesting that market conditions favour sellers. Inventory in the larger region stood at 4.5 months (which is 50.1% below the level last year and 46.8% below the 5-year average), while the sales to listing ratio was 81.9%, suggesting that market conditions favour sellers.
Homes in Saskatoon stayed on the market an average of 41 days in November—down 28.1% from 57 days last year (but below the 5-year average of 52 days and below the 10-year average of 50 days). Homes in the region stayed on the market longer than homes in the city at 48 days on average in 2020, but also down from an average of 63 days last year (and 20.3% below the 5-year average).
Median home prices in Saskatoon went from $327,000 to $314,500 (a decrease of 3.8%) and were approximately 3.6% below the 5-year and 4.2% below the 10-year average median price. The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—is up 5.4% from $306,600 to $323,400. Year-to-date, the median home price in Saskatoon was $329,559 which is 3.0% above the $320,000 price from the same time last year. Median home prices in the region went from $319,000 to $307,450 (a decrease of 3.6%) and were approximately 1.8% below the 5-year and 1.6% below the 10-year average median price. Year to-date, the median home price in the region was $313,589 which is 3.9% above the $301,827 price from the same time last year.
Information provided by Saskatchewan REALTORS® Association