SUPPLY LEVELS AT LOWEST LEVELS RECORDED IN AUGUST IN NEARLY A DECADE
August sales reached 1,466 units, reflecting a year-over-year decline of three percent. While sales continue to ease relative to last year, year-to-date sales of over 11,000 units remain well above long-term averages for the province. As supply levels in the lower price ranges continue to fall, we see a decline in sales driven largely by homes priced below $500,000.
New listings fell for the second consecutive month, resulting in a slight reduction in inventories. While the monthly pullback is consistent with seasonal trends, supply levels remain at their lowest levels recorded in August in nearly a decade and significantly below 10-year averages.
“Supply remains a challenge in the market and while we are seeing some signs of improvement, the gains are in the upper end of the market and have not offset the declining supply of more affordable homes,” said Saskatchewan REALTORS® Association CEO Chris Guérette. “Higher lending rates are having a cooling impact on demand, but the challenge continues to be having enough supply available in the lower price ranges in our market.”
The pullback in inventory levels resulted in a slight drop in the months of supply, which dipped below 5 months in August. Though supply levels remain relatively low for this time of year, a continued shift toward more balanced conditions helped take pressure off home prices. The benchmark price was $334,100 in August, slightly lower than the previous month and five per cent higher than last August.
“Speculation over further rate increases and inflationary pressures are contributing to housing market corrections in many markets across the country,” said Guérette. “While Saskatchewan is experiencing a slight pullback in sales, we continue to expect that we will fare better than other regions of the country.”
City of Saskatoon
Improved sales in homes priced above $500,000 were not enough to offset the pullbacks recorded in the lower end of the market this month, as sales declined by 11 per cent year-to-date. The decline in sales is in part related to shrinking inventory levels for homes priced below $500,000. Overall inventory levels are 20 per cent lower than last year and 33 per cent below the traditional average. In August, 77 per cent of inventory was below $500,000, a segment of the market that reflected nearly 84 per cent at this time last year.
As conditions remain relatively tight in the Saskatoon market, the benchmark price was $383,300, similar to last month and nearly seven per cent higher than last year.
SRA Media Release, Sept. 6.22
