For the second month in a row, sales in the province slowed relative to activity recorded earlier in the year and sales last August. While sales declined by nearly 12 per cent compared to last August, levels remain above long-term trends.
“Last year, August sales hit a new record high for the month, so while the year-over-year decline this month seems significant, it is important to note that sales are still at levels that are far better then what were seen in August prior to the pandemic. Sales have been far stronger than anyone expected throughout the pandemic, and recent shifts are likely a reflection of the market returning to more normal levels as the rest of the economy starts to recover,” Comments Chris Guérette, Saskatchewan REALTORS® Association CEO.
While there have been some signs of shifting conditions over the past several months, it has not erased the gains that were seen throughout the year. Thanks to gains across all property types on a year-to-date basis, sales in the province are currently sitting at a new record high.
Easing sales in August were also met with a reduction in new listings. This helped prevent any significant changes to inventory levels which at 9,461 units is far lower than levels recorded since 2014. Nonetheless, slower sales relative to the inventory in the market caused the months of supply to increase to just below 7 months in August. This is the first time since February that levels have risen this high.
The shift to more balanced conditions will help support more stability in prices. As of August, the benchmark price across Saskatchewan was $287,900, similar to levels reported last month but nearly seven per cent higher than levels reported last year. Prices gains in the detached sector of the market have narrowed the gap nearly recovering from previous highs.
“Activity can vary significantly depending on the location and property type. For instance, when considering the two largest cities in the province, home prices have recovered in Saskatoon while there remains a significant spread from 2012 levels in Regina. For both buyers and sellers in this market, it is important to understand the local conditions,” Comments Guérette.