REGINA REAL ESTATE MARKET UPDATE
OCTOBER SALES REMAIN STRONG AS BUYERS LOOK TO TAKE ADVANTAGE OF LOW LENDING RATES
November 04, 2021
For immediate release:
Residential sales activity eased slightly over last year’s record highs. However, with 1,306 sales this month, levels are over 18 percent higher than long-term averages.
“Despite challenges with the pandemic, housing demand in the province has remained exceptionally strong as many purchasers are looking to take advantage of the very low lending rates,” said Saskatchewan REALTORS® Association (SRA) CEO Chris Guérette.
The monthly pullback in sales were met with even higher declines in new listings. This caused the sales to new listings ratio to rise to 68percent and the inventory to fall to 6,836, over 10 percent lower than last year and nearly 20 percent below long-term averages.
“One of the single greatest issues the Canadian real estate market faces, including in Saskatchewan, is the declining levels of housing supply,” said Guérette. “The seasonally adjusted number of residential properties left for sale on MLS® Systems of Canadian real estate boards and associations is close to falling below the100,000 mark for the first time on record. Six years ago, that number was a quarter of a million.”
While conditions did tighten this month especially for detached homes, benchmark prices have trended down relative to levels recorded earlier in the year. However, it is important to note that these monthly adjustments have not offset earlier gains. As of October, total residential prices are nearly five percent higher than last year and on a year-to-date basis are nearly eight percent higher than the previous year, just shy from the 2014 highs.
“To tackle the supply and affordability issues, all levels of government need to ensure adequate housing opportunities are available for Saskatchewanians across the housing spectrum,” said Guérette. “We are recommending policies that address those issues like including clauses in Infrastructure Bilateral Agreements with provincial and territorial partners to encourage and incentivize the creation of more housing supply and increased recruitment of immigrants to our province.”
Sales Ease as Supply Levels Remain Relatively Low
|October 06, 2021|
For immediate release:
Sales activity slowed relative to last year’s record highs but remained well above long-term trends. At the same time, the province also saw a pullback in the number of new listings in the market causing some easing in inventory levels. With adjustments in both sales and supply levels, conditions remained relatively unchanged as the sales to new listings ratio remained over 60 per cent and the months of supply stayed above five months.
“Prior to covid, Saskatchewan had excess supply in the market. However, since July of last year, sales reached new record levels for most months, causing a steady decline in inventory levels. Over the past quarter we have seen that pace of sales ease from the record high; however, some of this can be related to declines in new listings and low inventory levels in the market.” Comments Chris Guérette, Saskatchewan REALTORS® Association CEO.
While driven by slower sales activity, the market is demonstrating more balance between supply and demand compared to levels recorded in the spring. The market continues to favour the sellers; however, this recent shift toward more balanced conditions is taking some of the pressure off prices. Benchmark home prices did ease slightly relative to levels recorded over the past few months but remain well above last year’s levels.
On a year-to-date basis, residential home prices have risen by eight per cent. Shifts in sales over the past three months was not enough to derail earlier gains as year-to-date sales are sitting at record levels and are over 30 per cent higher than long-term averages. While detached sales account for over 74 per cent of all sales, there have been improvements across all property types, especially attached properties which now account for nearly 12 per cent of all the sales in the province.
September 07, 2021
For immediate release:
For the second month in a row, sales in the province slowed relative to activity recorded earlier in the year and sales last August. While sales declined by nearly 12 per cent compared to last August, levels remain above long-term trends.
“Last year, August sales hit a new record high for the month, so while the year-over-year decline this month seems significant, it is important to note that sales are still at levels that are far better then what were seen in August prior to the pandemic. Sales have been far stronger than anyone expected throughout the pandemic, and recent shifts are likely a reflection of the market returning to more normal levels as the rest of the economy starts to recover,” Comments Chris Guérette, Saskatchewan REALTORS® Association CEO.
While there have been some signs of shifting conditions over the past several months, it has not erased the gains that were seen throughout the year. Thanks to gains across all property types on a year-to-date basis, sales in the province are currently sitting at a new record high.
Easing sales in August were also met with a reduction in new listings. This helped prevent any significant changes to inventory levels which at 9,461 units is far lower than levels recorded since 2014. Nonetheless, slower sales relative to the inventory in the market caused the months of supply to increase to just below 7 months in August. This is the first time since February that levels have risen this high.
The shift to more balanced conditions will help support more stability in prices. As of August, the benchmark price across Saskatchewan was $287,900, similar to levels reported last month but nearly seven per cent higher than levels reported last year. Prices gains in the detached sector of the market have narrowed the gap nearly recovering from previous highs.
“Activity can vary significantly depending on the location and property type. For instance, when considering the two largest cities in the province, home prices have recovered in Saskatoon while there remains a significant spread from 2012 levels in Regina. For both buyers and sellers in this market, it is important to understand the local conditions,” Comments Guérette.
Sales in Regina were down 10.1% going from 385 in July 2020 to 346 in July 2021, and down 11.5% in the overall region, going from 479 to 424. In Regina, sales were 30.5% above the 5-year average (and 25.1% above the 10-year average), while in the larger region, sales were 28.8% above the 5-year average (and 25.1% above the 10-year average). Year-to-Date (YTD) sales in Regina rose 42.9% over last year, increasing from 1,642 to 2,347, while YTD sales in the larger region rose 41.5%, going from 2,031 to 2,873.
Sales volume was down 9.9% in the city, going from $120.9M to $108.8M in 2021 (30.1% above the 5-year average, and 24.5% above the 10-year average). In the region, sales volume was down 7.0%, going from $146.1M to $135.8M (33.9% above the 5-year average, and 29.0% above the 10-year average). YTD sales volume in the city was $755.4M, an increase of 51.1% from last year, while in the region, YTD sales volume was $939.0M, an increase of 51.8% from last year.
In Regina, the number of new listings in July 2021 declined 1.1%, going from 555 to 549 (13.0% above the 5-year average and 10.2% above the 10-year average), while in the region, new listings declined 6.6%, going from 693 last year to 647 this year (5.1% above the 5-year average and 2.9% above the 10-year average). YTD new listings in the city rose 26.9%, going from 3,057 to 3,878, while in the larger region, the number of new listings to date rose 20.0%, going from 3,902 to 4,683. Active listings rose 7% in Regina (up from 1,432 to 1,532) and fell 2.3% in the region (down from 1,996 to 1,951).
Months of supply in Regina stood at 4.4 months (which is 19.0% above the level last year and 33.7% below the 5-year average), while the sales to listing ratio was 63.0%, suggesting that market conditions favour sellers. Months of supply in the larger region stood at 4.6 months (which is 10.4% above the level last year and 41.2% below the 5-year average), while the sales to listing ratio was 65.5%, suggesting that market conditions favour sellers.
Homes in Regina stayed on the market an average of 43 days in July, down 11.8% from 49 days last year (but below the 5-year average of 51 days and below the 10-year average of 43 days). Homes in the region stayed on the market longer than homes in the city at 45 days on average in 2021, also down from an average of 54 days last year (and 19.2% below the 5-year average).
The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—saw the residential benchmark price in Regina rise nearly 6% year-over-year, going from $252,900 to $268,000.
Sales in Regina were up 9.6% going from 374 in June 2020 to 410 in June 2021, and up 3.7% in the overall region, going from 482 to 500. In Regina, sales were 27.3% above the 5-year average (and 27.3% above the 10-year average), while in the larger region, sales were 25.5% above the 5-year average (and 26.8% above the 10-year average). Year-to-Date (YTD) sales in Regina rose 61.4% over last year, increasing from 1,229 to 1,983, while YTD sales in the larger region rose 60.1%, going from 1,518 to 2,430.
Sales volume was up 17.3% in the city, going from $116.9M to $137.0M in 2021 (33.2% above the 5-year average, and 31.8% above the 10-yearaverage). In the region, sales volume was up 11.2%, going from$150.8M to $167.7M (32.0% above the 5-year average, and 32.9% above the 10-year average). YTD sales volume in the city was $639.8M, an increase of 72.6% from last year, while in the region, YTD sales volume was $794.8M, an increase of 72.7% from last year.
In Regina, the number of new listings in June 2021 rose 6.0%, going from 599 to 635 (6.9% above the 5-year average and 11.5% above the 10-year average), while in the region, new listings rose 2.7%, going from 745 last year to 765 this year (3.1% above the 5-year average and 5.7% above the 10-year average). YTD new listings in the city rose 33.1%,going from 417 to 554, while in the larger region, the number of new listings to date rose 25.8%, going from 534 to 672. Active listings rose 5.4% in Regina (up from 1,335 to 1,407) and fell 4.6% in the region (down from 1,853 to 1,767). Inventory in Regina stood at 3.4 months (which is 3.9% below the level last year and 28.4% below the 5-year average), while the sales to listing ratio was 64.6%, suggesting that market conditions favour sellers. Inventory in the larger region stood at 3.5 months (which is 8.1% below the level last year and 34.9% below the 5-year average), while the sales to listing ratio was 65.4%, suggesting that market conditions favour sellers.
Homes in Regina stayed on the market an average of 38 days in June, down 34.5% from 58 days last year (but below the 5-year average of 48 days and below the 10-year average of 39 days). Homes in the region stayed on the market longer than homes in the city at 43 days on average in 2021, also down from an average of 62 days last year (and 19.2% below the 5-year average). The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—saw the price of the benchmark single family home in Regina rise 7.3% year-over-year, going from $249,600 to $267,800.
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.
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:
- 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
- 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