Home sales and the supply of homes declined across the province in August, with supply at its lowest in nearly a decade and well below 10-year averages.
In Moose Jaw, there were 46 homes sold last month, a decline from 59 units — or 29 per cent — in August 2021, data from the Saskatchewan Realtors Association (SRA) shows.
There were 73 new listings in August, a decrease from 77 units — or five per cent— last August. Furthermore, inventory levels slipped to 189 units, a decline from 217 units — or 15 per cent — last year.
There were 4.11 months of supply of homes last month, which was 20-per-cent higher compared to the 3.31 months of supply last August, the report said. Meanwhile, homes stayed on the market for 38 days.
The average home price in The Friendly City was $248,846 last month, which was eight-per-cent higher year-over-year. Meanwhile, the benchmark price was $249,300, an increase of five per cent from last August.
The 10-year average for August shows there are usually 51 home sales, 92 new listings, 298 homes in inventory, 6.10 months of supply, 60 days for homes on the market, an average home price of $232,625 and a benchmark price of $228,370.
Year-to-date, the report indicated there have been 436 homes sold, 651 new listings, 160 homes in inventory, 2.94 months of supply, 43 days of homes on the market, an average home price of $259,305 and a benchmark price of $239,025.
The 10-year average for year-to-date statistics for August shows there are usually 383 homes sold, 764 new listings, 273 homes in inventory, 5.93 months of supply, 60 days of homes on the market, an average price of $243,045 and a benchmark price of $224,986.
Provincial outlook
August sales reached 1,466 units, reflecting a year-over-year decline of three per cent. While sales continued to ease relative to last year, year-to-date sales of over 11,000 units remained well above long-term averages for the province, the SRA said.
As supply levels in the lower price ranges fell to 4.72 months, there was a decline in sales driven largely by homes priced below $500,000.
New listings fell for the second consecutive month to 2,275 units, reducing inventories to 6,916 units from 7,704 homes. While the monthly pullback is consistent with seasonal trends, supply levels remained 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 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 five months in August. While supply levels remained relatively low for last month, a continued shift toward more balanced conditions took the pressure off home prices, said the SRA.
The benchmark price was $334,100, slightly lower than July 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,” added 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.”
