Home sales in Moose Jaw in May increased by over 15 per cent year-over-year and were above the 10-year average, while positively for buyers, benchmark prices declined by 1.2 per cent year-over-year.
There were 83 homes sold last month in The Friendly City, an increase from 71 units sold last May, data from the Saskatchewan Realtors Association (SRA) shows.
There were 92 new listings in May, a drop from 114 units during the same time in 2021. Furthermore, the inventory of homes stood at 154 units, which declined from 216 units compared to last May.
The number of available homes meant there were 1.86 months of supply available, a drop from 2.75 months of supply last May. Meanwhile, homes stayed on the market for 43 days.
The average price of a home in Moose Jaw last month was $270,574, an increase of three per cent year-over-year. However, the benchmark price of a home was $241,700, a decline of 1.2 per cent year-over-year.
The 10-year average for May shows there are usually 63 homes sold, 117 units listed, 316 homes in inventory, 5.39 months of supply, 57 days for homes to be on the market, benchmark home prices of $228,090 and an average price of $262,983.
Year-to-date, there have been 270 home sales, 384 new listings, 149 units in inventory, 2.76 months of supply, 45 days for homes on the market, benchmark prices of $233,780 and an average house price of $273,323.
The 10-year average for year-to-date statistics in May shows there are usually 215 home sales, 470 new listings, 262 units in inventory, 6.55 months of supply, 63 days for homes on the market, benchmark home prices of $222,896 and average prices of $243,665.
Provincial outlook
Unlike other areas of Canada, sales activity in May in Saskatchewan trended up to similar levels seen earlier this year. With 1,814 sales last month, levels were slightly lower than last year’s record but remained well above typical activity for the month, the SRA said.
Year-to-date sales have totalled 6,682 units, down 11 per cent from last year’s record high but over 27-per-cent higher than long-term trends.
“While demand for homes in Saskatchewan has remained relatively strong so far this year, we did not go through the same early demand surge as some markets. In fact, our market is exhibiting trends that we typically see in the spring,” said Chris Guérette, CEO of SRA. “What we are still struggling with is lower supply levels, which is keeping conditions relatively tight and causing further upward pressure on prices.”
In May, new listings trended up compared to earlier months and were slightly higher than last year. This pushed inventory levels above 6,000 units, but inventories are still nearly 20-per-cent lower than last year’s levels and 30-per-cent below long-term trends for the month.
Despite some shifts in supply, the market continues to remain exceptionally tight with less than four months of supply, something not seen since 2008. The tighter market conditions are placing further upward pressure on home prices, said SRA. As of May, the benchmark price reached $330,300, nearly one-per-cent higher than last month and four-per-cent higher than last year’s levels.
“Rising lending rates are expected to have some cooling impacts on housing demand. While sales activity could be impacted in coming months, it will take some time for the market to return to more balanced conditions,” added Guérette.
“Our recent report in partnership with the Saskatchewan Housing Continuum Network titled Saskatchewan’s Current Housing Continuum outlines the significant number of homes our province needs to build in the next seven years so we don’t fall behind. The next step will be to undertake research and recommend targeted policies that foster building and smart growth.”
