Regina & Region April Market Statistics

Throughout Saskatchewan, housing sales have slowed 11% compared to record highs set last April. Although sales have been slower in the first four months of the year, it is important to note that the 4,873 sales are 30% higher than longer-term trends. According to SRA CEO, Chris Guérette, “While rising lending rates are likely contributing to some of the pullback in sales, another challenge limiting sales has been the drop in supply choice, especially in the larger markets of the province.”

April’s New Listings were 18% lower than last year’s levels and Inventory levels are 20% lower than last April and over 30% below the long-term trends. The Months of Supply remain below four months and as Guérette stated, “The Months of Supply number is an important gauge of supply-and-demand balance in the market and current levels are far lower than what we would expect to see in the market at this time of the year. While conditions have been tighter historically, we have not seen market conditions like this for over a decade and it is resulting in further price growth.”

According to MLS® Home Price Index, Saskatchewan’s April 2021 residential home price was $254,900 and that price has risen by almost $10,000 to $264,100. Only two years ago, in April 2020, the benchmark price was $230,100, rising almost $35,000!

“Consumers purchasing budgets are shrinking, and the Bank of Canada rate increase has pushed up the mortgage stress test’s qualifying rate. That is going to remove strained buyers from the market, and it’s going to reduce the size of mortgage those who still qualifying will get. While Saskatchewan still offers some of the most affordable housing in the country, affordability will continue to deteriorate and could lead to a slow-down of the market, despite the many initiatives included in the recent federal budget,” said Guérette.

Narrowing down to Regina and Area, Sales and New Listings still remain lower than last April but despite sales activity reductions, the 10-year average spread has risen by 33.6%. The inventory levels are the highest they’ve been in the past four months as well as the number of New Listings. The number of sales compared to the inventory levels have caused the months of supply to drop under 3 months - this is the first time since October 2012. If the market continues this trend, home prices could have some added pressure in the next few months. Although prices have risen quite significantly, they still remain almost 13% below the monthly record high in June 2012!