Regina & Region December Housing Market Update

Saskatchewan had an incredible housing market boom in 2021, setting a housing sales record of 17,387 homes sold. This new record has surpassed the previous record set in 2007 by 17%.

Although the amount of new listings in Saskatchewan did improve in 2021, the inventory of homes dropped significantly throughout the province by almost 17%. With inventory numbers reduced and a coinciding strong demand, this ensured that the market favoured the seller. With these changes came the almost 8% rise of the benchmark price to $284,200. Granted, there was also a large variation of property types and location, from single family homes that were only 1% below previous highs, to condominium’s that remain 17% below the notorious highs of 2014.

Despite the ramped-up Omicron variant, inflation will continue to rise and lending rates along with it. Entering 2022 with low levels of inventory, it will take some time for the market to shift into more balanced conditions. The benchmark price, on the other hand, could continue to grow but hopefully at a steadier pace.

When it comes to the Regina Region, Sales have only dropped 0.4% since December 2020 and rose 20.6% since the beginning of 2021. The number of New Listings decreased by 16.9% as of December 2020 but since the beginning of 2021 have risen 11.7%. The Regina Region’s Inventory has dropped almost 9% with the 10-year average spread dropping 15.4%.

Using MLS® Home Price Index and looking specifically at Regina, there has been nearly a $15,000 substantial jump in price from January 2021 ($233,100) to December 2021 ($247,700). However, since November 2021 ($248,100), the price has decreased as represented in the graph below. With the expectancy of lending rates rising, Sales may sore due to unknown hikes in lending rates in early 2022.