The Saskatchewan Realtors Association says sales and demand are strong in the province’s housing market, despite inventory levels being a major concern.
“Inventory is at the lowest we’ve seen since 2007,” director of public affairs Cole Zawislak said. “It’d be interesting to see what the sales figures look like if there was more inventory. I think, without question, it’s actually prohibiting even stronger sales right now.”
The downfall is the lack of options.
“I think the biggest challenge for home buyers right now is the inventory piece. There’s just less out there,” Zawislak added.
The Saskatchewan Realtors Association reported that the strong growth in detached home sales drove the increase in overall sales, accounting for almost 73 per cent of the monthly sales.
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Sales also improved in almost every region of the province, and year-to-date sales are on track to be the second highest on record.
“Record population growth, favourable economic conditions and an improving labour market continue to support strong demand in Saskatchewan’s housing market,” association CEO Chris Guérette said. “When paired with easing lending rates, these factors are, without question, contributing to a 15th consecutive month of above-average sales.”
The Saskatoon and Regina Home Builders’ Association stated there is still a long way to go to bring building sales back up to last year’s levels.
“The cost of labour has gone up quite a bit, and access to labour is a challenge. So that’s another barrier,” CEO Nicole Burgess said. “And then, of course, government taxes and that large cost of inflation, specifically when it’s tied to new residential construction.”
Although September marked the 15th consecutive month of above-average sales in the province, it doesn’t necessarily mean housing prices have become more affordable.
“In September, every single city in our province reported a year-over-year price gain that ranges from as high as 13 per cent in Moose Jaw all the way to a per cent and a half in Meltfort,” Zawislak said.
Despite this, Saskatchewan remains one of the most affordable jurisdictions in the country. However, home builders and Realtors warn that the province should not become complacent or overly reliant on this. If the government does not take steps to correct course, we may continue to see prices rise.
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