Sask. housing market sees historically low inventory levels for December

The housing market in Saskatchewan is looking at low inventory levels, which is putting pressure on housing prices.

According to Chris Guérette, CEO of the Saskatchewan Realtors Association, these trends mirror those being felt across Canada.

“Housing is a very local issue and Saskatchewan doesn’t always follow national trends. But certainly, in this case, we’re also seeing some inventory levels that are going below our 10-year average,” she explained Wednesday.

The figures for Saskatoon sit at 439 new listings so far in December, according to the Saskatchewan Realtors Association’s statistics. For the same time period, 413 firm sales have been recorded so far this month.

For December in Regina, the city sits at 350 new listings, with 320 firm sales so far in December.

When it comes to the figures throughout the country in the past two years, Guérette explained that inventories have dipped.

“If you take a look at last year, for example, on the Multiple Listing Service that we manage across the country and us for Saskatchewan, we across the country last year had a quarter of a million units on there. This year is the first year that those numbers are going to go below 100,000,” she said.

Guérette said looking back at 2019, moving into the pandemic, she wouldn’t have predicted what unfolded throughout the housing market.

“We certainly would not have predicted what we’re living in 2020 and 2021. So it’s hard to predict what 2022 will look like. What we do know for sure is there’s going to be a pressure on prices,” she said.

Guérette predicted inflationary pressures, supply chain issues and an increase in the costs of supplies to build a home.

“All of those in combination of a pandemic that’s not ending — or there is no end in sight — that means that’s a hefty list of challenges (moving forward to 2022),” she said.

“The pandemic is adding a layer to projections that make it really hard. What we do know is interest rates are going up. That will impact buying power. The cost to build a home is going up. That will also impact buying power,” she said.

“So those are things to keep in mind. We still have a very healthy housing market here … the key will be can we contain that for the next 12 months?”

When looking at the market as a whole, Guérette explained a butterfly effect is being felt throughout the industry. That means the rental market is also feeling the effects.

“Housing is a continuum, so as soon as you impact a certain point of the continuum, it has an impact elsewhere,” she said.

“Any change will have an impact elsewhere … it doesn’t matter where you fall on that housing continuum.”

EDITOR’S NOTE: This story has been corrected to reflect the proper statistics for December.