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Inventory concerns grow as housing demand remains strong in Saskatchewan

While housing demand remains strong, the Saskatchewan Realtors Association says low inventory levels continue to be a concern. File / Global News

Housing sales eased in Saskatchewan during February, but the Saskatchewan Realtors Association (SRA) said housing demand continues to remain strong.

However, Chris Guérette said inventory levels remain lower than they traditionally see.

Read more: Supply issues continue to affect Saskatchewan’s housing market

Guérette, chief executive of the SRA,  said economic uncertainty is weighing on the housing market.

“While this could have some impact on demand, supply levels are still low providing some cushion should demand taper further,” she said in a release Thursday.

“Conditions also vary significantly based on location, property type and price range because real estate is very local.”

The SRA said there were 1,059 home purchases in February, down eight per cent from the same period a year ago.

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However, the SRA said sale levels are more than 22 per cent higher than typically seen for this time of year and nearly 40 per cent higher than the average between 2010 and 2020.

The SRA said most of the decline in sales during February was in detached homes.

One reason for this may be due to the low inventories. The SRA said inventories were 30 per cent below the 10-year average and 3,643 detached homes listed was the lowest since 2010.

Read more: Saskatchewan experiences record year for housing sales in 2021

Guérette said low inventory levels are a concern.

“Last month we started to raise an alarm bell about inventory levels in Saskatchewan,” she said. “Now that we’re two months into the market, that dip in inventory levels being the lowest we’ve seen since 2010 is concerning.”

She said they are working to build a full understanding of Saskatchewan’s housing market to identify gaps and “build smartly and collaboratively for growth.”

In Regina, the benchmark price for a detached home in February was $271,200, a five per cent increase year over year.

Saskatoon had a benchmark price of $362,100 for a detached home, a four per cent increase from February 2021.

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Click to play video: 'Housing market on the rise following record numbers in 2021'
Housing market on the rise following record numbers in 2021

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