SASKATCHEWAN REAL ESTATE REMAINS STRONG
March 4, 2021
The Saskatchewan real estate market continues to build on January’s momentum and outperformed last February. Across the province, sales were up over 74% from last February (and up 62.3% year-to-date, going from 663 to 1,157), new listings were essentially flat (and down 2.1% year-to-date, going from 1,775 to 1,773,) and the median sale price was up close to 3% (up 1.9% year-to-date, going from $265,000 to $272,000. Inventories were also down in all 19 of the markets that the SRA tracks.
Median sales prices were up in 13 of the 19 markets that the SRA tracks (with Moose Jaw and Yorkton seeing the strongest declines while Estevan and Weyburn saw the greatest increases), while the number of sales were up in 18 of 19 markets.
"We’re seeing inventories dry up as people keep buying. At the same time, the number of new listings continues to fall in several markets, suggesting that supply is shrinking,” said Chris Gbekorbu, Economic Analyst. This suggests that prices will continue to rise as fewer homes are available and buyers are forced to increase their bids to secure what’s available.
As prices continue to rise, however, we also see the number of new listings rise in certain markets. “Rising prices could help to encourage would-be sellers, who having seen homes jump in value last year, don’t want to miss out on rising prices this year,” said Gbekorbu. The safety precautions that the SRA put in place last April to help reassure the public that real estate is safe has certainly helped to channel pent-up demand from COVID and allowed the real estate market to continue its boom.
Sales in Saskatoon were up 53.0%, going from 230 in February 2020 to 352 in February 2021, and up 59.9% in the overall region, going from 314 to 502. In Saskatoon, sales were 42.7% above the 5-year average (and 35.1% above the 10-year average), while in the larger region, sales were 50% above the 5-year average (and 43.1% above the 10-year average). Year-to-Date (YTD) sales in Saskatoon rose 40.3% over last year, increasing from 449 to 630, while YTD sales in the larger region rose 43.4%, going from 604 to 866.
Sales volume was up 69.0% in the city, going from $73.7M to $124.4M in 2021 (49.6% above the 5-year average, and 42.2% above the 10-year average). YTD sales volume in the city was $221.3M, an increase of 52.5% from last year. In the region, sales volume was up 57.4%, going from $183.7M to $289.1M (57.9% above the 5-year average and 51.3% above the 10-year average). YTD sales volume increased 57.4% in the region, rising from $183.7M in 2020 to $289.1M in 2021.
In Saskatoon, the number of new listings in February 2021 rose 15.8%, going from 468 to 542 (3.3% above the 5-year average and 5.0% below the 10-year average), while in the region, new listings rose 6.1% from 685 last year to 727 this year (3.5% below the 5-year average and 10.4% below the 10-year average). YTD new listings in the city rose 5.8%, going from 1,039 to 1,099, while in the larger region, the number of new listings to date rose 0.5%, going from 1,496 to 1,504. Active listings fell 21.6% in Saskatoon (down from 1,392 to 1,091) and fell 28.7% in the region (down from 2,618 to 1,867).
Inventory in Saskatoon stood at 3.1 months (which is 48.8% below the level last year and 50.8% below the 5-year average), while the sales to listing ratio was 64.9%, suggesting that market conditions favour sellers. Inventory in the larger region stood at 3.7 months (which is 55.4% below the level last year and 55.6% below the 5-year average), while the sales to listing ratio was 69.1%, suggesting that market conditions favour sellers.
Homes in Saskatoon stayed on the market an average of 43 days in February—down 40.3% from 72 days last year (but below the 5-year average of 56 days and below the 10-year average of 51 days). Homes in the region stayed on the market longer than homes in the city at 53 days on average in 2021, but also down from an average of 81 days last year (and 18.2% below the 5-year average).
In Saskatoon, the MLS® Home Price Index (HPI)—a more accurate measure of house price trends—was up 10.1%, going from $299,800 to $330,100.
Information provided by Samantha Krahn ~ Director of Government & External Relations ~ Saskatchewan REALTORS® Association