Market Update

SASKATCHEWAN REAL ESTATE MARKET REMAINS STEADY

June 3,  2021

The Saskatchewan real estate market remains strong. Across the province, there were 1,853 homes sold (up over 67% from last May and up 88.9% year-to-date, going from 3,978 to 7,513), new listings were up over 14% (and up 26.7% year-to-date, going from 2,019 to 2,556,) and the MLS® Home Price Index composite was up 11.2% (up 8.4% year-to-date, going from $265,800 to $288,300). Inventories—a measure of how many months until there are no active listings given current sales levels— were also down in all 24 markets that the SRA tracks.

“May was about as strong April,” said Chris Gbekorbu, SRA’s Economic Analyst. This month-over-month leveling off in activity is expected. “Markets have been gaining momentum since last May when some pandemic restrictions were lifted. And at some point, things need to start to steady,” said Gbekorbu. But market indicators suggest that the current pace should hold.

Strong demand combined with falling inventory levels continues to put upward pressure on prices. The MLS® Home Price Index (HPI) composite was up in 13 of the 15 markets where these data are available (with Estevan and Weyburn showing declines of 5.9% and 1.8% respectively, while Swift Current and Meadow Lake saw the greatest increases), while the number of sales were up in 23 of 24 markets.

It’s still too early to tell what kind of an impact the new mortgage rules will have on markets. According to Gbekorbu, “When new regulations were introduced in 2018, we saw a jump in sales right before the new rules came into effect followed by a drop in sales after.” While sales and prices may fall a little in the coming months as buyers reevaluate their finances, the drop is likely to be temporary. “The rules introduced in 2018 saw prices fall just over 1% across the province, but they’ve continued climbing,” said Gbekorbu.

 

Saskatoon and Region (including Martensville, Warman, and Humboldt)

Sales were up 76.7% in Saskatoon (going from 326 to 576), up 28.6% in Martensville (going from 21 to 27), and up 88.9% in Warman (going from 18 to 34). In Humboldt, sales were up 27.3% (going from 11 to 14), while in the larger region, sales were up 68.1% (going from 470 to 790). Sales in Saskatoon were 36.4% above the 5-year average (and 33.8% above the 10-year average), 33.7% above the 5-year average (and 18.9% above the 10-year average) in Martensville, and 27.8% above the 5-year average (and 8.3% above the 10-year average) in Warman. In Humboldt, sales were 1.4% above the 5-year average (and 10.2% above the 10-year average), while in the larger region, sales were 35.6% above the 5-year average (and 31.7% above the 10-year average). Year-to-Date (YTD) sales in Saskatoon rose 84.5% over last year (increasing from 1,261 to 2,326), rose 56.7% in Martensville (increasing from 67 to 105), and rose 128.1% in Warman (increasing from 64 to 146). Year-to-Date (YTD) sales in Humboldt rose 132.1% over last year (increasing from 28 to 65), while YTD sales in the larger region rose 84.7% (going from 1,737 to 3,209).

Sales volume was up 90.1% in the Saskatoon, going from $117.1M to $222.7M in 2021 (48.2% above the 5-year average, and 45.5% above the 10-year average). In Martensville, sales volume was up 56.4%, going from $6.1M to $9.6M (41.7% above the 5-year average, and 29.0% above the 10-year average) and in Warman, sales volume was up 121.7%, going from $6.3M to $14.0M (42.2% above the 5-year average, and 21.7% above the 10-year average). Sales volume was up 51.4% in Humboldt, going from $2.5M to $3.7M (14.9% above the 5-year average, and 19.7% above the 10-year average), while in the region, sales volume was up 88.6%, going from $154.3M to $290.9M (48.2% above the 5-year average, and 45.2% above the 10-year average). YTD sales volume in Saskatoon was $855.4M (an increase of 99.5% from last year), $36.0M in Martensville (an increase of 78.8% from last year), and $57.2M in Warman (an increase of 140.1% from last year). YTD sales volume in Humboldt was $15.6M (an increase of 170.5% from last year), while in the region, YTD sales volume was $1,121.3M (an increase of 102.0% from last year).

In Saskatoon, the number of new listings in May 2021 rose 34.4%, going from 755 to 1,015 (8.9% above the 5-year average and 9.6% above the 10-year average). The number of new listings rose 44.8% in Martensville, going from 29 to 42 (5.8% below the 5-year average and 7.9% below the 10-year average) and rose 6.4% in Warman, going from 47 to 50 (9.4% below the 5-year average and 16.4% below the 10-year average). In Humboldt, the number of new listings fell 76.2%, going from 63 to 15 (52.2% below the 5-year average and 43.4% below the 10-year average), while in the region, new listings rose 16.9%, going from 1,151 last year to 1,346 this year (0.6% below the 5-year average and 1.2% below the 10-year average). YTD new listings in Saskatoon rose 38.6% (going from 577 to 800), rose 34.6% in Martensville (going from 25 to 34), and rose 19.0% in Warman (going from 35 to 41). In Humboldt, YTD new listings fell 22.7% (going from 22 to 17), while in the larger region, the number of new listings to date rose 29.8%, going from 836 to 1,085. Active listings rose 4.4% in Saskatoon (up from 1,524 to 1,591), were flat at 73 Martensville, fell 38.7% in Warman (down from 119 to 73), fell 29.9% in Humboldt (down from 97 to 68), and fell 8.8% in the region (down from 2,753 to 2,511).

Inventory in Saskatoon stood at 2.8 months (which is 40.9% below the level last year and 37.6% below the 5-year average), while the sales to listing ratio was 56.7%, suggesting balanced market conditions. Inventory in Martensville stood at 2.7 months (which is 22.2% below the level last year and 49.7% below the 5-year average), while the sales to listing ratio was 64.3%, suggesting that market conditions favour sellers. Inventory in Warman stood at 2.1 months (which is 67.5% below the level last year and 54.7% below the 5-year average), while the sales to listing ratio was 68.0%, suggesting that market conditions favour sellers. Inventory in Humboldt stood at 4.9 months (which is 44.9% below the level last year and 31.7% below the 5-year average), while the sales to listing ratio was 93.3%, suggesting that market conditions favour sellers. Inventory in the larger region stood at 3.2 months (which is 45.7% below the level last year and 42.8% below the 5-year average), while the sales to listing ratio was 58.7%, suggesting balanced market conditions.

Homes in Saskatoon stayed on the market an average of 34 days in May, down 29.2% from 48 days last year (but below the 5-year average of 45 days and below the 10-year average of 40 days). Homes in Martensville stayed on the market an average of 26 days, down 61.2% from 67 days last year (but below the 5-year average of 54 days and below the 10-year average of 49 days) while homes in Warman stayed on the market an average of 32 days, down 39.6% from 53 days last year (but below the 5-year average of 50 days and below the 10-year average of 52 days). Humboldt saw Homes stay on the market an average of 70 days, down 38.1% from 113 days last year (but below the 5-year average of 108 days and below the 10-year average of 96 days), and homes in the region were on the market an average of 41 days, also down from an average of 59 days last year (and 22.1% below the 5-year average).

The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—varied across different centres in the region. Saskatoon saw the price of the benchmark single family home rise 13.1% year-over-year, going from $292,000 to $330,300. The price of the benchmark single family home in Martensville rose 12.9% (going from $353,000 to $398,500) and also rose by 15.6% in Warman (going from $359,000 to $414,900). The price of the benchmark single family home in Humboldt rose 21.5% (going from $172,300 in 2020 to $209,400 this year).

Information provided by Samantha Krahn ~ Director of Government & External Relations ~  Saskatchewan REALTORS® Association