Year-over-year sales activity is down in the Prince Albert housing market, but remains above the provincial average.
The Saskatchewan Realtors Association reported 88 sales in the Prince Albert area in May, down 14% from the same month last year. Total home inventory fell during this period, while the average sale price soared to $292,450. This is a 13% increase over the previous year.
Saskatchewan Realtors Association CEO Chris Guérette said lack of inventory was likely the biggest reason for the drop in sales.
“It’s a bit like buying shoes. You’re looking for something very specific, whether it’s an office or a gym or whatever, and if you walk into a store that doesn’t have much to choose from, your chances of finding something or walking out to buy something are reduced,” explained Guérette. “It’s the same thing in the housing sector. With the supply being so low, it’s hard to find something that meets your needs.
The Prince Albert area has seen 291 sales so far in 2022. This is a 31% drop from the previous year, when Saskatchewan reached record sales levels. All regions of Saskatchewan experienced a decline in sales, with the exception of the Southeast, which saw a modest increase of 4%.
As sales fell, prices rose. The average May selling price in the Prince Albert area was 13% higher than in 2021. Guérette said low inventory levels are also likely driving the trend.
“Sales are still relatively high compared to the 10-year average, and the quantity of supply is decreasing,” she said. “What this does is put pressure on prices, so it’s no surprise that prices continue to rise.”
Parts of Canada have seen huge increases in house prices over the past year, with New Brunswick, Nova Scotia and Prince Edward Island all reporting increases of more than 20% .
Guérette said Saskatchewan is unlikely to see any big swings in the housing market, but added it will take two to four months before buyers and sellers feel the impact of the rise. inflation and interest rates.
The latest report from the Saskatchewan Realtors Association shows the province is at its lowest housing supply total since 2008. Guérette said that needs to change if prices are to drop.
“Our recent report in partnership with the Saskatchewan Housing Continuum Network titled Saskatchewan’s Current Housing Continuum outlines the significant amount of housing our province needs to build over the next seven years to avoid falling behind. She said in the report. “The next step will be to undertake research and recommend targeted policies that promote building and smart growth.”
Total home sales in Saskatchewan continue to be well above the 10-year average, with 6,682 reported at the end of May.