Saskatchewan real estate sales dipped 12 per cent in 2022 year-over-year, but remained above the long-term average.
There were 15,334 recorded sales in 2022, according to the Saskatchewan Realtors Association. That mark remains 15 per cent above long-term averages.
Listings were also down in 2022, experiencing a seven per cent decline from 2021.
Inventory concerns slowed through the back half of the year, but supply still dipped year-over-year and was well below long-term averages. Inventory levels were 11 per cent below 2021 levels, and 25 per cent below 10-year averages.
The realtors association said the decline in supply was driven by properties priced below $500,000, which created tight conditions in the lower-priced parts of the market.
“Without question, higher lending rates are contributing to the pullback in sales. We saw the Bank of Canada raise interest rates seven times in 2022,” Chris Guérette, the CEO of the Saskatchewan Realtors Association, said.
“When paired with declining inventory levels, particularly in homes priced below $500,000, we do see that having an impact on sales.”
Benchmark prices in the province were more than four per cent higher in 2022 than the previous year.
“With prospective buyers having to qualify at higher rates, our biggest concern heading into the new year is the lack of supply in homes priced below $500,000,” Guérette said.
REGINA REAL ESTATE
Sales also declined in the city of Regina, but at a slower rate than the province overall. Year-over-year, sales were down three per cent.
The realtors association said the decline was driven by pullbacks in the detached sector, with sales in other categories improving.
While down year-over-year, the 3,609 sales reported in 2022 were still over 23 per cent higher than long-term trends and well above pre-pandemic activity, according to the realtors association.
New listings and inventory also declined in 2022. Supply increased towards the end of the year, which took some pressure off prices particularly in the fourth quarter of the year. Year-over-year, the benchmark price increased by more than three per cent in the city.
