Housing sales continued to drop for Saskatoon in December, according to the Saskatchewan Realtors Association (SRA).
“Without question, higher lending rates are contributing to the pullback in sales. We saw the Bank of Canada raise interest rates seven times in 2022,” said CEO Chris Guérette.
“When paired with declining inventory levels, particularly in homes priced below $500,000, we do see that having an impact on sales.”
For Saskatoon, there were 4,587 sales reported in 2022, which was a 15 per cent decrease from the high in 2021. However, the SRA said sales in Saskatoon were 12 per cent higher than 10-year-trends.
“Supply continues to be a challenge, as new listings have eased significantly and were 14 per cent below long-term averages in 2022,” the news release said.
Inventory levels dropped 31 per cent below long-term trends and the market “remains tighter than what we would traditionally see in Saskatoon,” the SRA said.
Benchmark prices rose by nearly five per cent over 2021 prices.
“The housing market is changing as consumers adjust to higher lending rates and rising costs of living. That said, Saskatchewan continues to fare better than many regions across the country and we expect that to continue in 2023,” said Guérette.
“With prospective buyers having to qualify at higher rates, our biggest concern heading into the new year is the lack of supply in homes priced below $500,000.”
Overall sales decreased by 12 per cent across the province last year.
