Housing News

REGINA REAL ESTATE MARKET UPDATE

 

April 2022 - Real Estate Stats for the City of Regina 

New listings trended up relative to levels recovered over the past several months, helping support some monthly gains in sales activity.  However, both sales and new listings continue to remain lower than the levels reported last year both for the month of April and year-to-date figures. Despite some reductions in sales activity, levels this year are still 37 per cent higher than the long-term average and are more consistent with activity seen prior to 2013.

While new listings have remained consistent with levels traditionally seen in the market, the stronger sales have started to weigh on overall inventory levels. Inventory levels are higher than levels recorded in the market over the past four months, with 1,060 units available in April, inventories are 13 per cent below long-term trends.  The stronger sales combined with the current inventory levels has caused the months of supply to stay below three months for the second month in a row. This is exceptional as it has not happened in the Regina market since 2012.

The tighter market conditions are placing upward pressure on prices.  As of April, the benchmark price rose to $271,100 reflecting a year over year gain of four per cent. While prices have yet to recover from previous highs, should conditions remain this tight we could continue to see the price gap narrow.

The strong sales compared to inventory levels did cause the months of supply to fall below three months, the first time it has done that since October 2012. While the tighter conditions have had some impact on prices in the market, if the market still is this tight, we could see added pressure on home prices in the coming months.

In March, the benchmark price rose to $264,000, nearly two per cent higher than last year and one per cent higher than last month. The growth in prices helped narrow the spread from the earlier high, but prices continue to remain nearly 13 per cent below the monthly high recorded back in June 2012.



March 2022 - SUPPLY LEVELS REMAIN LOW CAUSING CONTINUED PRICE INCREASES

Both sales and new listings trended up this month compared to levels seen over the past few months. However, the level of new listings coming onto the market was far lower than levels seen last year and for the10-year average. This caused the sales to new listings ratio to rise and prevented any notable change to the supply situation. With 5,648units in inventory, levels are nearly 30 per cent lower than what we traditionally see in the market in March.

March is typically the month that we start to see more people listings their homes adding supply to the market. While we did see more new listings compared to the winter months, it hasn’t been enough compared to the sales to make any significant change in supply resulting in further price gains in the market,” said Saskatchewan REALTORS® Association (SRA) CEO Chris Guérette.

The unadjusted benchmark price in March reached $289,500, nearly two percent higher than last month, over three per cent higher than last year’s levels and 13 per cent higher than pre-pandemic levels.

Economic conditions have been improving across most sectors and with that we have seen gains in employment and reductions in the unemployment rate. This along with relatively low lending rates is likely supporting further confidence in the housing market and continued strength in demand.  While sales did ease in March over last year’s record levels, they remained 40 per cent higher than long-term trends.

As we move more into the spring market supply will be a crucial factor,” said Guérette. “Should supply levels start to improve we could see more balanced conditions slowing the upward pressure on prices. However, this transition could take longer than expected, especially in our largest cities, which is why we’ve begun outreach to our industry partners to discuss how to address these supply shortages.”

City of Regina 

Sales in the city slowed compared to last year’s record pace, but with351 sales in the month, levels are still amongst the strongest March activity recorded in the city. Like other areas, new listings did rise compared to levels seen over the past seven months. This helped support modest gains in inventory compared to the last four months. However, with 982 units in inventory, this was nine per cent lower than levels recorded last year. . Regina did not have the same inventory struggles last year, but this recent shift does put inventory levels over 12 per cent below long-term trends.

The strong sales compared to inventory levels did cause the months of supply to fall below three months, the first time it has done that since October 2012. While the tighter conditions have had some impact on prices in the market, if the market still is this tight, we could see added pressure on home prices in the coming months.

In March, the benchmark price rose to $264,000, nearly two per cent higher than last year and one per cent higher than last month. The growth in prices helped narrow the spread from the earlier high, but prices continue to remain nearly 13 per cent below the monthly high recorded back in June 2012.


FEBRUARY SALES EASE OVER RECORD LEVELS

March 03, 2021

For immediate release:   

February sales in the province reached 1,059, an eight per cent decline relative to last year. While the year is starting out with sales that have slowed compared to last year, it is important to note that housing demand continues to remain strong as levels are over 22 percent higher than what we typically see at the start of the year and nearly 40 per cent higher than average levels recorded throughout the 2015–2020-time frame.

While there have been some signs of improving new listings relative to sales, inventory levels remained lower than levels we traditionally see in the market and the months of supply averaged just over five months. The five months of supply in February is slightly lower than levels expected at this time of year.

There is a significant amount of uncertainty weighing on the economy. While this could have some impact on demand, supply levels are still low providing some cushion should demand taper further. Conditions also vary significantly based on location, property type and price range because real estate is very local,” said Saskatchewan REALTORS® Association CEO Chris Guérette.

Most of the decline in sales was driven by pullback in the detached sector. However, some of this could be related to the lower inventory levels. Detached inventories in February were 3,643 across the province 30 per cent below 10-year averages and the lowest the market has seen since 2010.

Last month we started to raise an alarm bell about inventory levels in Saskatchewan,” said Guérette. “Now that we’re two months into the market, that dip in inventory levels being the lowest we’ve seen since 2010 is concerning. That’s why we’re working harder than ever to build a fuller picture of Saskatchewan’s housing continuum so we can identify where the gaps are and build smartly and collaboratively for growth.”

Benchmark prices in the province have remained stable over the past several months, but on a year-to-date basis remain over five per cent higher than last year’s levels. If the inventory can better meet demand as we move through the spring, it should support more stability in prices this year.

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The Saskatchewan REALTORS® Association (SRA) provides leadership and services that support 1,500 Realtors in Saskatchewan through technology, education, and advocacy. SRA is also the provincial trusted voice invested in bringing expert insight to public policymakers on matters that affect growth, housing, real estate, and the creation of wealth in our communities. 

For more information, visit: www.saskatchewanrealtorsassociation.caand www.realtor.ca.



City of Regina

With 261 sales in February, city levels rose to a new record high. The February gain offset some of the pullback that occurred last month as year-to-date sales remained at levels consistent with what we saw last year, which is over 30 per cent higher than long term trends for the city. In addition to the low lending rates and improvements in the job market, Regina has not faced the same level of supply constraint that has prevented stronger sales growth in some markets.  However, should the sales to new listings remain above 70 per cent as we move into spring, we could start to see supply challenges occur in this market as well.

By the end of February there were 908 units in inventory, like last month and last year. Inventory levels are slightly lower than long term trends. Strong sales relative to the inventory levels caused the months of supply to ease to just over three months.

The detached segment of the market demonstrated tighter market conditions relative to the broader market. While prices remained stable this month, after the first two months of the year, the benchmark price for detached homes rose by over six per cent moving the city closer to price recovery.


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SUPPLY CHALLENGES PERSIST INTO JANUARY

February 3, 2022
For immediate release: 

New listings in January remained well below traditional levels seen in the market in January. While levels are better than what was recorded in December, it did little to change the inventory situation as inventories remain at the lowest January levels since 2012.

January sales in the province reached 748 units, a decline over last year’s elevated levels, but still higher than longer term averages. Lower inventory levels likely contributed to some of the slower sales activity this month.

“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,” said SRA CEO, Chris Guérette.

The months of supply in January rose to just over seven months. While this is a gain compared to last January, overall conditions are still relatively tight for January. Persistently tight market conditions supported further price gains. In January, the unadjusted benchmark price rose to $285,700, nearly seven per cent higher than last January.

The SRA has been working to gain a better understanding of the factors affecting housing supply in Saskatchewan. Everything from labour and supply shortages to land costs, lending rate increases, the pandemic and remote work, along with increased immigration and economic growth. All are contributing to gaps in the housing continuum and the Association is seeking partnerships that foster collaboration in the industry to work and address those gaps.

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

 Regional Highlights

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. While it is too early in the year to put much weight on these figures, Moose Jaw is a place to watch. The months of supply generally trended up toward more balanced conditions across most regions. However, conditions still tightened compared to last year in the regions of Melfort and Saskatoon.

Price Trends

Benchmark home prices across all the larger centers did record gains compared to last January with year-over-year increases ranging from a low of just under one per cent in Estevan to a high of nearly 16 per cent in Melville.  While the year-over-year gains are significant, it is important to remember that prices started to see more significant gains last year in the spring. Nonetheless, most of the centers recorded further price gains in January over December levels. The largest unadjusted monthly gain occurred in Meadow Lake at over five per cent.

City of Regina

Like other centers, sales in January eased over the strong levels recorded last year but remained above the 10-year average. At the same time, new listings did ease slightly over last year’s levels, but with 316 new listings for the month, the sales to new listing ratio eased to 53 per cent, slightly lower than the 57 per cent recorded last year. Inventory levels also remained relatively stable this month.  However, slightly slower sales combined with stable inventory levels helped push up the months of supply to just over five months.

Despite the gain, the months of supply is still relatively tight, supporting further price growth in the market. Benchmark prices in January trended up over last month and reflect a year-over-year gain of over seven per cent.



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The REALTOR® Code

CREA’s REALTOR® Code has been the measure of professionalism in organized real estate for over 40 years. The first code was approved in 1913; members approved the first code of ethics specific to CREA members in 1959. The Code has since been amended many times to reflect changes in the real estate marketplace, the needs of property owners and the perceptions and values of society.


A REALTOR’s® ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public. The REALTOR® Code, by setting high standards of professional conduct for REALTORS®, helps to protect Canadians’ rights and interests. It also creates a level of trust between REALTORS® and their clients.


 Download the REALTOR® Code (PDF).


A STRICT STANDARD OF CONDUCT


The REALTOR® Code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures the protection of the rights and interests of consumers of real estate services. As a condition of membership, all REALTORS® agree to abide by the Code.


Key items of the Code include:


  1. REALTORS® must disclose in writing whom they are representing as an agent in the transaction, and explain to parties in a transaction the details of the agency relationship; and
  2. REALTORS® can’t acquire an interest in property (either directly or indirectly) without disclosing the fact that they’re real estate professionals.


THE CODE AND THE LAW


The REALTOR® Code establishes obligations that may be higher than those mandated by law. However, in any instance where the code and the law conflict, the obligations of the law must take precedence.

Courtesy of: Canadian Real Estate Association (CREA) CREA.CA


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Shirley MacFarlane
Shirley MacFarlane
Salesperson
2010 - 11th Avenue, Unit #703 Regina SK S4P 0J3