Contrary to the national trend of declining home sales in Canada, the Saskatoon real estate market experienced a significant upswing in November 2023. The city witnessed a robust sale of 314 residential units, marking an 18% increase (48 units) compared to the previous year. This surge in Saskatoon home sales highlights the city’s unique market dynamics.
Record-Breaking Residential Sales in Saskatoon
From May to November 2023, Saskatoon’s housing market saw an impressive total of 3,168 residential units sold through the MLS. This figure is second only to the record set in 2021, underscoring the city’s growing appeal despite rising mortgage rates and competitive market conditions.
Saskatoon Housing Market Trends: A Five-Year Comparison
An analysis of Saskatoon’s housing market trends over the past five years reveals a consistent increase in sales numbers, with November 2023 slightly exceeding the five-year average. However, new listings saw a decrease, contributing to a significant drop in available inventory compared to the average.
Rising Home Values Amid Supply Shortages
Saskatoon’s housing market has faced three years of supply shortages, leading to a consistent rise in home values. The current HPI Benchmark Price has increased by nearly $20,000 since last year, reflecting the city’s robust real estate market.
Inventory Shortages and Price Dynamics
The city’s real estate market is characterized by low inventory levels, which have contributed to price growth over the past four years. This trend is a reversal from the period of 2014-2019, when excess supply led to falling prices.
Saskatoon’s Real Estate Market: The Need for Balance
With a months-of-inventory ratio of 2.68 at the end of November, the Saskatoon housing market requires an immediate addition of approximately 415 residential units to achieve a balanced market.
Property Type and Price Range Analysis
An examination of the months-of-inventory ratios across different property types and price ranges in Saskatoon reveals a general under-supply, particularly in townhouses priced under $300,000.
Conclusion: Strong Sales and Low Inventory in Saskatoon’s Housing Market
The Saskatoon real estate market continues to exhibit strong sales and low inventory levels. Significant changes in the market are unlikely unless there are major economic shifts or factors that impact consumer confidence.