Housing sales hit record high in Regina, rising mortgage rates expected to affect demand

Despite supply issues, Saskatchewan's housing sales remain high compared to pre-pandemic years. In fact, housing sales in Regina hit a record high in May, with 456 units sold.

That number raises the year-to-date sales up to 1,615, according to the Saskatchewan Realtors Association's market statistics for May 2022.

In Saskatoon, 541 units were sold in May. That's among the highest levels seen.

"I think what's different for Saskatchewan is that some of the inflationary challenges that everybody is facing, as well as you know the changes in interest rates, are not hitting us as hard," said Samantha Krahn, director of government and external relations with the Saskatchewan Realtors Association.

"I think inflation is actually lower here than in a lot of places in the country.… Our reality is different. Things are still, you know, affordable here. There is opportunity. Prices have been increasing, but there's still a lot of room for buyers here."

According to the Canadian Real Estate Association, Saskatchewan homes are selling at their lowest point since the beginning of the pandemic. Saskatchewan is also the only province with cheaper homes this year, compared to 2021. 

Still, the average cost of a home in Regina was higher in May than it was five years ago by 4.1 per cent.

The same data showed house prices in the overall Saskatchewan and Saskatoon regions increased 8.9 per cent and 13.3 per cent respectively.

When comparing prices month-to-month, houses in Regina came in 0.3 per cent cheaper in May than they did in April.

In the Saskatchewan and Saskatoon regions, house prices increased by 0.1 per cent and 0.6 per cent over April's prices respectively.

Meanwhile, the Saskatchewan Realtors Association says new listings are needed.

"We don't see that changing anytime soon. I imagine that the supply levels are going to continue to be low and it's going to be all of our jobs … business, government … to figure out how we can get more more built and do it smartly and responsibly," Krahn said.

Unlike some areas of the country, Saskatchewan sales trended up in May compared to earlier in 2022. There were 1,814 sales total in May, which is slightly lower than 2021's record. However, the recent numbers are well above typical housing sales in May.

Year-to-date sales total at 6,682 units, down 11 per cent from last year's record high, but more than 27 per cent higher than long-term trends.