According to a recent Edge Realty report, Saskatchewan is experiencing a relatively stable housing market, although there are fluctuations and some concerning indicators, such as increasing mortgage arrears.
Sales
In the first quarter of 2024, the number of sales in the Saskatchewan real estate market decreased by 3.1% compared to the previous quarter. However, there was a notable year-over-year increase of 7.7%, suggesting potential growth overall.
Listings
New listings in the first quarter dropped by 5.3% from the last quarter of 2023. Similar to sales on a year-over-year basis, a different trend is showing, as new listings have risen by 9.7%.
On the other hand, active listings dropped both quarter-over-quarter and year-over-year. There was a substantial quarter-over-quarter decline of 14.6% and a year-over-year decrease of 5.8%, which may lead to a tightening market that can be reflected in prices.
Months of Inventory
The drop in listings can be reflected in the months of inventory, which measures the time it would take to sell all current listings at the current sales pace. The months of inventory slightly increased from 4.3 months in Q4 2023 to 4.4 months in Q1 2024.
Sales-to-New Listings Ratio
The sales-to-new listings ratio decreased from 63.1% in Q4 2023 to 61.9% in Q1 2024, showing a marginally reduced pace of sales relative to the number of new listings.
Prices
The prices of properties in Saskatchewan experienced a modest quarter-over-quarter increase of 1.8% and a more pronounced year-over-year rise of 3.9%.
Under-Construction
The number of properties under construction decreased by 3.6% from the last quarter but increased by 5.1% year-over-year.
The Province of Saskatchewan reports a notable 82.2% increase in housing starts in April 2024, compared to April 2023.
Other Economic Indicators
Unemployment Rate
The unemployment rate in Saskatchewan increased from 5.0% in Q4 2023 to 5.4% in Q1 2024. Despite the rise in unemployment, Saskatchewan has the fourth lowest unemployment of Canadian provinces.
Mortgage Arrears
Mortgage arrears rose slightly from 0.56% in Q4 2023 to 0.60% in Q1 2024, reflecting increasing financial strain among homeowners. Although the increase is minor, it is concerning, especially since this is a trend similarly experienced in other provinces.
Population
Saskatchewan’s population grew by 0.5% in the first quarter compared to the previous quarter, and by 2.6% compared to the same period last year. This follows a trend of increasing population, attributed to recruiting workers from other countries.