Saskatoon remains a tight housing market as sales continued to drop last month.
Sales in homes over the $500,000-mark increased in Saskatoon, but did not make up for a decline in sales under the $500,000 price tag. The result was an 11 per cent drop in housing sales for the city, according to Saskatchewan Realtors Association (SRA).
The SRA said that inventory levels are 20 per cent lower than last year and 33 per cent behind the traditional average. In Saskatoon’s housing market, 77 per cent of inventory was below the $500,000 mark, however that number was 84 per cent last year.
“Supply remains a challenge in the market and while we are seeing some signs of improvement, the gains are in the upper end of the market and have not offset the declining supply of more affordable homes,” SRA CEO Chris Guérette said.
“Higher lending rates are having a cooling impact on demand, but the challenge continues to be having enough supply available in the lower price ranges in our market.”
The benchmark price in Saskatoon was $383,300, which is seven per cent higher than in 2021, SRA said.
Other markets are also seeing a pullback, including Melfort, Moose Jaw, North Battleford and Prince Albert. However, Swift Current, Regina and Yorkton saw gains last month.
“Speculation over further rate increases and inflationary pressures are contributing to housing market corrections in many markets across the country,” Guérette said.
“While Saskatchewan is experiencing a slight pullback in sales, we continue to expect that we will fare better than other regions of the country.”