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Housing supply shortage in 2021 continues to affect the province, data shows

Saskatchewan’s challenges in 2021 with housing supply continued into January, with the Saskatchewan Realtors Association (SRA) singling out Moose Jaw for its decline in sales last month.
Real estate sales
Home sales. File photo

Saskatchewan’s challenges in 2021 with housing supply continued into January, with the Saskatchewan Realtors Association (SRA) singling out Moose Jaw for its decline in sales last month.

“Every region in the province recorded slower sales this month compared to the strong levels recorded last year. While sales in the province remained in line with historical norms, Moose Jaw stood out, as the decline in January sales pushed levels well below long-term trends and caused a significant rise in the months of supply,” CEO Chris Guerette said. 

“While it is too early in the year to put much weight on these figures, Moose Jaw is a place to watch.”

New listings last month remained well below traditional levels that the market normally sees in January, the SRA said. While levels are better than in December 2021, that did little to change the inventory situation since it remains at the lowest January levels since 2012.

“Inventories still remain relatively low, but if new listings continue to improve relative to the sales, this should eventually translate into improved supply and better market balance,” Guerette said. 

Moose Jaw region stats
There were 23 home sales in the Moose Jaw region in January, a decline of 44 per cent compared to last January, SRA’s data showed. 

Furthermore, there were 73 new listings — a decline of 17 per cent year-over-year — and 291 homes on inventory, a drop of 17 per cent year-over-year. Also, there were 12.65 months of supply of homes, a jump of 47 per cent over last January. 

Most homes spent 89 days on the market, while the average home cost $217,317, an increase of six per cent year-over-year.

Saskatchewan stats
There were 748 total home sales throughout the province last month, a decline of 18 per cent year-over-year, the data showed. 

Furthermore, there were 1,367 new home listings in January — a decline of 22 per cent year-over-year — and 5,302 homes on inventory, a drop of 13 per cent compared to January 2021. Also, there were 7.09 months of supply of homes, an increase of six per cent year-over-year.

Meanwhile, homes spent 74 days on the market, while the average home price was $290,642, an increase of seven per cent.

Understanding the market
The SRA is working to understand the factors affecting housing supply in Saskatchewan, such as labour and supply shortages, land costs, lending rate increases, the pandemic and remote work, increased immigration and economic growth. 

These factors contribute to gaps in the housing continuum, so the association is looking to collaborate with partners to address those gaps.

“With changes expected in lending rates, the 2022 housing market is not expected to see the demand levels as (in) 2021,” said Guerette. “However, it is still early in the year, and like I have said before, my biggest concern for 2022 is inventory.” 

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