Since late 2023 and entering 2024, we have witnessed a mixture of trends in the Saskatchewan market influenced by broad economic conditions, population growth and consumer preference shifts. Saskatoon and Regina, along with smaller cities and rural communities, have some unique dynamics. Here are some key trends to make note of regarding the recent Saskatchewan real estate market:

1. Steady Demand Despite Higher Interest Rates

• While the Bank of Canada’s interest rate hikes have put pressure on mortgage affordability, Saskatchewan's housing market has remained relatively resilient compared to other provinces. Recent rate decreases and rumours of further cuts (50bps in December 2024 rumour) are becoming more attractive for buyers.

• The demand for housing in urban centers (Saskatoon & Regina) remains strong, partly due to migration population growth and job opportunities in sectors like agriculture, mining, and tech.

• Rural communities and smaller cities are also seeing more interest from people seeking affordable properties or wanting to escape urban congestion, though this is often more specific to buyers looking for second homes or investment properties.

2. Decrease in Inventory

• Inventory is still somewhat limited in specific property types, particularly detached homes in desirable neighborhoods. Competition remains strong in these segments.

3. Continued Migration

• Saskatchewan has experienced positive net migration from other provinces and internationally as of late. The influx of population is driven by the province's relatively affordable cost of living to other provinces, a robust job market and skilled worker incentives, especially in the agriculture and energy sectors.

• Migration is assisting in demand for housing, particularly in Saskatoon and Regina, also in suburban and rural areas as people search for more affordable housing options compared to larger urban centers in Canada.

4. First-Time Homebuyers

• We have witnessed an increasing number of first-time homebuyers and young families entering the market of late. This has in turn increased demand for more affordable starter homes and properties in suburban areas, where new developments and suburban neighborhoods are growing.

• Programs aimed at helping first-time buyers, such as tax rebates or lower down-payment options, have also contributed to this trend.

5. Luxury Market Growth

• The luxury real estate market is growing, especially in Saskatoon and Regina, where high-end homes in desirable areas are located.

• The luxury segment most definitely benefits from the province's resource-driven economy giving residents the financial means to purchase high-end properties.

6. Rising Rental Demand and Tight Vacancy Rates

• There has been sustained pressure on rental markets, with vacancy rates remaining low. This trend is particularly noticeable in Saskatoon and Regina, where rental demand from university students, migrants, and workers in specific sectors (health care, mining, and construction) increases rental competition.

• Renters have witnessed their rental prices increase, due to a limited number of rental units and increased demand for both single-family rentals and multi-unit buildings.

7. Increased Focus on Rural and Recreational Properties

• Since COVID, more remote work options have become available, affording residents the option to move away from urban centers and opt for rural and recreational properties where living costs are lower.  

8. New Development and Urban Expansion

• New neighbourhood developments are a trend in both Saskatoon and Regina, located on the outskirts of the cities. Housing initiative goals are met by including a mix of both single-family homes and multi-family projects aimed at accommodating the influx of new residents.

• There has also a focus on infill developments in the downtown cores and older neighborhoods, where developers are looking to maximize land use with higher-density housing solutions.

Saskatchewan's recent real estate market in has been driven by strong demand, particularly for single-family homes, increased demand in the rental market, and stable price growth. Despite the increase in interest rates, Saskatchewan is relatively affordable compared to other provinces. It is imperative that buyers and sellers be mindful of market shifts, however Saskatchewan long-term outlook remains strong due to its economic stability and growth.

According to sales figures from the Saskatchewan Realtors Association, we witnessed an unprecedented October in Saskatchewan setting a record for the most sales ever recorded during a single October in history. October 2024 impressively outpaced 2023 by 21% year over year. We have now seen 16 consecutive months of above average sales, causing a drastic inventory decline with inventory at its lowest levels in the past 14 years. The most drastic decline were homes priced under $300,000. These tight market conditions seen throughout 2024 have put upward pressure on prices of homes. Recent rate cuts are expected to support even stronger demand, with inventory levels at these levels, we expect a challenging climate for prospective buyers.

Saskatoon set a record high 444 sales in October, which is a 17% year over year increase and nearly 30% higher than long-term 10 year averages. There are currently only 803 listings available in the Saskatoon residential market, which hasn’t seen this few of homes active on the MLS in 18 years. There is currently only 2 months of supply on the market, meaning things are good for sellers. Benchmark prices in saskatoon for October 2024 were at $402,600 which is up marginally from September and 7% higher year over year from October 2023.

Interest Rates

If youre currently in the market to buy and on the fence waiting until rates drop, we have seen bonds stall and increase slightly. If buyers are risking waiting, they may be battling more buyers as the CMHC rule change in December comes into effect which will create more competiion on available inventory.

As anticipated, the BOC dropped the base lending rate by .5% and there are rumors of another .5% drop in December. The Current economy is slowing in Canada and with GDP figures under 1%, there is a likelihood that rates may have to come down further.​​​​​​​

The new year should be quite interesting. We are looking to replenish our listing inventory heading into the new year and appreciate any referrals you may have!