Saskatchewan’s real estate market in May 2024 was characterized by strong sales, historically low inventory levels, and rising prices.
Sales
Saskatchewan recorded 1,841 sales in May, for a 6% increase year-over-year and a significant 24% above the ten-year average.
Listings
Despite a seasonal increase in new listings, inventory levels remained critically low, reaching the lowest point since April 2008. The most significant inventory shortages were observed in homes priced below $300,000, indicating intense competition in the affordable segment of the market. This imbalance between supply and demand has put upward pressure on prices across the province.
Prices
May showed a slight rise in the provincial residential benchmark price to $340,400, up from $339,800 in April and over 4% higher compared to May 2023. Price increases were recorded across all property types, with apartments and row/townhouse-style properties showing the most substantial gains.
Regional Variations
Sales and inventory dynamics varied across Saskatchewan’s regions. In the two largest markets, Regina and Saskatoon, inventory continued to dwindle due to strong sales. Regina-Moose Mountain and Saskatoon-Bigger regions reported tighter market conditions with under three months of supply.
In terms of average home prices, the Saskatoon-Bigger and Swift Current-Moose Jaw regions experienced significant monthly increases. On a year-over-year basis, Melfort had the highest increase at 13%, although Saskatoon, Regina, Estevan, Weyburn, Moose Jaw, Swift Current, Humboldt, and Prince Albert also reported increases.
Regina
The City of Regina recorded 440 sales in May, for a 5% year-over-year increase and a substantial 32% above the long-term average. Despite a slight uptick in new listings, inventory remained nearly 50% below historical averages. Regina’s benchmark price edged up to $320,000, showing a small gain from April and a 2% increase year-over-year.
Saskatoon
Saskatoon reported 573 sales in May, reflecting a 7% rise compared to the previous year and a 28% increase over the ten-year average. Inventory levels fell by 21% year-over-year, continuing to remain about 50% below long-term trends. Saskatoon had the lowest inventory city in the province. Saskatoon’s benchmark price stood at $397,200 in May, a slight decrease from April but nearly 6% higher than the previous year.
Rental Market Dynamics
Over the past decade of rental vacancy rates in Saskatchewan, the highest vacancy rate was observed in Q1 October 2019, reaching 12.4%. The lowest rate occurred in Q4 October 2023, when vacancies dropped to just 0.8%. The five-year average from 2019 to 2023 in Q4 was around 3.0% in Q4. Comparing the most recent data, from Q4 2022 to Q4 2023, there has been a decrease from 1.7% to 0.8%.
In June 2024, Saskatchewan was among the top three provinces (along with Nova Scotia and Alberta) driving annual rent inflation for apartments, with a notable 21.4% increase to an average rent of $1,334. Rents in these three provinces rose by at least 2% month-over-month.
Unemployment
In May 2024, Saskatchewan’s unemployment rate was 5.6%, up from 4.4% a year earlier but still the third lowest among Canadian provinces. This rate was also below the national average of 6.2%.
Consumer Confidence
Consumer confidence in the Prairies showed little change in June 2024. There was a slight increase in pessimism about job prospects over the next six months, though fewer people were uncertain. Expectations for household budget stability improved slightly, and the sentiment regarding major purchases, including homes, remained historically low, reflecting cautious consumer behaviour.
