Here’s the Saskatoon real estate market update – June, 2022:
Sales in June eased over last year’s record, contributing to the year-to-date decline of nearly 12 percent. While sales have eased, with 2,584 sales so far this year, levels are still amongst the highest levels recorded for the city.
New listings continue to trend up this month relative to the sales causing the sale to new listings ratio to ease to 56 per cent. This helped support modest gains in inventory levels compared to earlier in the year, however, inventory levels continue to remain well below last year’s levels and long-term trends for the city.
Relatively strong demand combined with the inventory in the market has kept the months of supply exceptionally low. This has resulted in further upward pressure on prices this month. In June the benchmark price reached $380,200, over one percent higher than last month and a five percent gain relative to last year. Much of the price growth continues to be driven by the detached market.
June sales eased over last year’s record levels. However, with 1,808 sales this month, activity is still over 20 percent stronger than long term trends for the province.
“While sales have been trending down in the province this year, we cannot lose sight of the fact that sales levels are still amongst the highest levels ever recorded in our market and these higher relative levels are still being achieved despite the sharp rise in lending rates,” comments Chris Guérette, CEO of the Association.
For the second month in a row, we have seen the level of new listings improve to levels that are consistent with the 10-year average. This has helped support some monthly gains in inventory levels. However, with only 6,893 units available in inventory, supply levels are still 27 per cent lower than traditional levels, and the month of supply remains amongst the lowest levels reported for June.
Persistently tight market conditions continue to place upward pressure on home prices. In June the unadjusted benchmark price rose to $333,400 nearly one percent higher than last month and nearly five percent higher than last year’s levels.
“Moving forward we do anticipate that further rate increases will weigh on sales and eventually support more balanced conditions. However, Saskatchewan continues to benefit from relative affordability, improving migration and job growth, which should help offset some of the impact that higher rates would have on the housing market.”
The Saskatchewan REALTORS® Association produces monthly real estate statistics to provide insight to decision makers in our province on how best to manage matters that affect growth, housing, and the creation of wealth. It also proudly works with the Saskatchewan Housing Continuum Network to collaborate with like-minded industries.