There can be no denying that COVID-19 has had a tremendous impact on global and local markets. While the true extent of the pandemic’s effects will not be known for some time, we can begin to get an idea of how markets are being affected. In Saskatchewan, the first presumptive case of COVID-19 appeared on March 12, and the province declared a state of emergency on March 18. Comparing sales and sales volume figures since the state of emergency was declared to the same period last year reveals that while there was a 6.2% drop in total sales and a 9.6% drop in total sales volume, none of this decline affected the residential market.
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In fact, the number of residential sales in the province was unchanged while total sales volume increased 5.6%. While reports have suggested that real estate markets in countries hit with COVID-19 have seen the total number of transactions decline significantly, the Saskatchewan real estate market hasn’t been negatively impacted to date. However, what data exist suggests that it takes time for transaction volumes to fall, and as the environment continues to change and markets react to new policy measures, we should expect to see impacts emerge in the future.
“Other markets have seen significant declines in transactions as a result of COVID-19 or other previous pandemics” says Jason Yochim, CEO of the Saskatchewan REALTORS® Association. “While we should expect to see transaction volumes decline in the wake of COVID-19 as well, the combination of low interest rates and declining inventories should make for a strong recovery once this temporary crisis is over.”
North Battleford
Sales in North Battleford were up a whopping 181.8%, going from 11 last year to 31 this year, and up 109.5% in the overall region, going from 21 to 44. In both North Battleford and the region, sales were more than 28.0% above the 5-year average while they were more than 16.0% above the 10-year average. Year-to-Date (YTD) sales in North Battleford rose 62.5% over last year, going from 32 to 52, while YTD sales in the larger region also increased 45.5%, going from 55 to 80.
Sales volume was up 205.1% in the city, going from $1.7M to $5.0 in 2020 which is 11.2% above the 5-year average sales volume, but 4.2% less than the 10-year average. YTD sales volume in the city was $8.0M, a 29.6% increase from $4.5M last year. In the region, sales volume was up 174.3% going from $3.0M to $8.1M (21.6% above the 5-year average). YTD sales volume also increased 61.5% in the region, rising from $9.2M in 2019 to $14.8M in 2020.
Although total sales and sales volume were up, the number of new listings fell in both the city and the region as a whole. North Battleford saw new listings fall 18.3%, going from 60 to 49 (over 23.0% below the 5-year average), while in the region, new listings fell 22.8% from 101 last year to 78 this year. The number of active listings increased, however, going from 118 to 139 in North Battleford and 545 to 590 in the region.
Saskatoon
Sales in Saskatoon were up 6.2%, going from 258 in March 2019 to 274 in March 2020, and up 7.2% in the overall region, going from 346 to 371. In both Saskatoon and the region, sales were less than 2.0% under the 5-year average while they were more than 10% below the 10-year average. Year-to-Date (YTD) sales in Saskatoon rose 8.2% over last year, increasing from 668 to 723, while YTD sales in the larger region also increased 8.8%, going from 891 to 969.
Sales volume was up 16.9% in the city, going from $81.4M to $95.1M in 2020 (1.3% above the 5-year average). YTD sales volume in the city was $240.2M, an increase of 12.6% from last year. In the region, sales volume was up 16.2%, going from $105.9M to $123.1M (1.2% above the 5-year average). YTD sales volume also increased 11.3% in the region, rising from $274.6M in 2019 to $305.7M in 2020.
Although total sales and sales volume were up, the number of new listings in March 2020 fell significantly from the number last year. In Saskatoon, new listings fell 14.2%, going from 702 to 602 (over 17.0% below the 5- and 10-year averages), while in the region the situation was even worse, with new listings falling 19.5% from 1,037 last year to 835 this year. Active listings also fell 9.9% in Saskatoon (down from 1,611 to 1,452) and 7.8% in the region (down from 2,864 to 2,641).
The sales to listing ratio was 45.5% in Saskatoon and 44.4% in the region suggesting somewhat balanced market conditions in the area.
Homes in Saskatoon stayed on the market an average of 55 days in March—down a modest 3.5% from 57 days last year (but still slightly above the 5-year average of 54 days). Homes in the region stayed on the market somewhat longer than homes in the city at 66 days on average in 2020, but also down from an average of 68 days last year.
Average home prices in Saskatoon went from $316,737 to $347,189 (an increase of 9.6%) and were approximately 3.0% above the 5- and 10-year average price. The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—is down 0.3% from $303,200 to $302,200. Average home prices in the region also increased 8.4%, going from $306,161 to $331,793, which is also approximately 3.0% above historical averages.
Regina
Sales in Regina were up 1.9%, going from 210 in March 2019 to 214 in March 2020, and up 11.5% in the overall region, going from 235 to 262. In Regina, sales were approximately 2.0% below the 5-year average and just over 9.0% below the 10-year average, while in the region overall, sales were 3.7% below their historical averages. Year-to-Date (YTD) sales in Regina fell 8.6% over last year, decreasing from 525 to 480, while YTD sales in the larger region fell a more modest 3.7%, going from 597 to 575.
Sales volume was up 5.3% in the city, going from $62.4M to $65.7M in 2020 (3.4% below the 5-year average). YTD sales volume in the city was $141.5M, a decrease of 9.3% from last year. In the region, sales volume was also up 19.0% going from $68.3M to $81.3M (2.9% above the 5-year average). YTD sales volume decreased 1.7% in the region, however, falling from $176.3M in 2019 to $173.4M in 2020.
The number of new listings in Regina fell a significant 19.5% from March of last year, going from 534 to 430 (over 13.0% below the 5- and 10-year averages), while in the region the situation was slightly better with new listings only falling 16.1% from 670 last year to 562 this year. Active listings also fell 4.6% in Regina (down from 1,344 to 1,282) and 4.2% in the region (down from 1,836 to 1,759).
The sales to listing ratio was 49.8% in Regina and 46.6% in the region suggesting somewhat balanced market conditions in the area.
Homes in Regina stayed on the market an average of 68 days in March—down 6.8% from 73 days last year (but still above the 5-year average of 58 days). Homes in the region stayed on the market somewhat longer than homes in the city at 75 days on average in 2020, but also down from an average of 84 days last year.
Average home prices in Regina went from $297,134 to $307,140 (an increase of 3.4%) and were approximately 1.0% above the 5- and 10-year average price. The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—is up 1.8% from $266,500 to $271,300. Average home prices in the region also increased 6.8%, going from $290,559 to $310,250 which is also approximately 0.3% above historical averages.
Melfort
Sales in Melfort were down 57.1%, going from 7 in March 2019 to 3 in March 2020, but up 13.3% in the overall region, going from 15 to 17. In Melfort, sales were more than 58.0% below the 5- and 10-year averages, while in the region overall, sales were 1.2% and 12.4% below their 5-year and 10-year averages. Year-to-Date (YTD) sales in Melfort fell 56.3% over last year, decreasing from 16 to 7, while YTD sales in the larger region fell a more modest 16.7%, going from 42 to 35.
Sales volume was down 44.6% in the city, going from $1.4M to $0.8M in 2020 (50.2% below the 5-year average). YTD sales volume in the city was $3.2M, a decrease of 50.1% from last year. In the region, sales volume was up 63.0%, going from $1.9M to $3.0M (4.1% above the 5-year average). YTD sales volume decreased 13.4% in the region, however, falling from $6.3M in 2019 to $5.5M in 2020.
The number of new listings in March fell from 6 to 5 year-over-year and is over 54.0% below the historical average, while in the region the situation was somewhat worse with new listings falling from 34 last year to 24 in 2020. Active listings in Melfort increased from 49 to 54 and is over the 5-year average of 49, while in the region, active listings fell modestly, going from 228 in 2019 down to 222 in 2020, just slightly below the 5-year average.
The sales to listing ratio was 60.0% in Melfort and 70.8% in the region suggesting a sellers’ market in the area.
Homes in Melfort stayed on the market an average of 144 days in March—up 48.5% from 97 days last year (and still above the 5-year average of 108 days). Homes in the region stayed on the market somewhat longer than homes in the city at 155 days on average in 2020, also up from an average of 89 days last year.
Average home prices in Melfort went from $203,700 to $263,333 (an increase of 29.3%) and were approximately 16.0% above the 5-year average price. Average home prices in the region also increased a significant 43.8%, going from $124,060 to $178,376—5.8% above the five-year average price.
Moose Jaw
Sales in Moose Jaw were down a modest 6.1%, going from 33 in March 2019 to 31 in March 2020, but up 29.7% in the overall region, going from 37 to 48. In Moose Jaw, sales were 11.4% below the 5-year average, while in the region overall, sales were 3.0% above their 5-year average. Year-to-Date (YTD) sales in Moose Jaw fell 3.6% over last year, going from 83 to 80, while YTD sales in the larger region jumped 19.8%, rising to 115 from 96.
Sales volume was down 23.3% in the city, going from $8.8M to $6.8M in 2020, off 20.3% from the 5-year average. YTD sales volume in the city was also down 9.7%, falling from $19.5M to $17.6M. In the region, sales volume was up 1.9% going from $9.3M to $9.4M (but still 7.4% below the 5-year average of $10.2M). YTD sales volume also increased 5.5% in the region, rising from $21.3M in 2019 to $22.4M in 2020.
The number of new listings in the city fell from 89 to 87 (12.3% below the 5-year average), while the region saw a significant 15.9% increase in new listings, going from 113 in 2019 to 131 in 2020. Active listings in Moose Jaw fell 9.6% to 255—off almost 13.0% from the 5-year average, while active listings only fell modestly in the region, going from 502 to 492.
The sales to listing ratio was 35.6% in Moose Jaw and 36.6% in the region suggesting a buyers’ market in the area.
Homes in Moose Jaw stayed on the market an average of 86 days in March—up 6.2% from 81 days last year (and still above the 5-year average of 69 days). Homes in the region stayed on the market for 88 days on average in March, down from an average of 92 days last year.
Average home prices in Moose Jaw fell a significant 18.3%, going from $268,174 to $219,019 and were approximately 10.0% below the 5- and 10-year average prices of $243,401. Average home prices in the region also fell a significant 21.5%, going from $250,452 to $196,719—10.7% below the 5- and 10-year average price of $220,308.
Prince Albert
Sales in Prince Albert were up 60.0%, going from 15 in March 2019 to 24 in March 2020, but down 5.4% in the overall region, going from 37 to 35. In Prince Albert, sales were 18.4% below the 5-year average and 35.0% below the 10-year average, while in the region overall, sales were 22.2% below their 5-year average. Year-to-Date (YTD) sales in Prince Albert rose 14.0% over last year, going from 50 to 57, while YTD sales in the larger region fell 6.3%, going from 95 to 89.
Sales volume was up 87.8% in the city, going from $2.6M to $5.0M in 2020 (24.6% below the 5-year average of $6.6M). YTD sales volume in the city was $11.6M, an increase of 19.8% from last year. In the region, sales volume was essentially unchanged, going from $7.1M in 2019 to $7.2M in 2020. YTD sales volume fell 5.3% in the region from $18.4M to $17.4M in 2020.
The number of new listings in Prince Albert fell 14.3%, going from 70 to 60 (over 13.0% below the 5- and 10-year averages), while in the region, the situation was slightly worse with new listings falling 19.4% from 134 last year to 108 this year. Active listings rose 1.1% in Prince Albert (up from 265 to 268) but fell 4.8% in the region (down from 626 to 596).
The sales to listing ratio was 40.0% in Prince Albert suggesting balanced market conditions, while a buyers’ market exists in the overall region with a sales to listing ratio of 32.4%.
Homes in Prince Albert stayed on the market an average of 68 days in March—down 34.6% from 104 days last year (and 29.2% below the 5-year average of 96 days). Homes in the region stayed on the market longer than homes in the city at 96 days on average in 2020 (down from 137 last year), which is 18.8% below the 5-year average of 118 days.
Average home prices in Prince Albert increased 17.4%, going from $176,493 to $207,152, but were approximately 4.6% below the 5-year average price. Average home prices in the region also increased 6.2%, going from $192,957 to $204,976, which is also approximately 5.3% below the 5-year average price of $216,344.
Swift Current
Sales in Swift Current were up 45.5%, going from 11 in March 2019 to 16 in March 2020, and up 8.3% in the overall region, going from 24 to 26. In Swift Current, sales were more than 15.0% below the 5- and 10-year averages, while in the region overall, sales were more than 17.0% below their historic averages. Year-to-Date (YTD) sales in Swift Current rose 27.5% over last year, going from 40 to 51, while YTD sales in the larger region rose a more modest 8.2%, going from 73 to 79.
Sales volume was up 51.8% in the city, going from $2.6M to $3.9M in 2020 (but still 23.6% below the 5-year average of $5.0M). YTD sales volume in the city was $11.8M, an increase of 28.1% from last year. In the region, sales volume was up 32.8% going from $3.7M to $4.9M (26.0% below the 5-year average). YTD sales volume rose 13.4% in the region, going from $13.3M in 2019 to $15.1M in 2020.
The number of new listings in March fell 23.0% from 61 to 47, however this is more consistent with the 5- and 10-year historical averages of 47 and 42. In the region, new listings fell 9.0% (100 to 91). Active listings in Swift Current fell from 209 to 201 (which is still over the historical averages) and the number of active listings in the region also increased modestly, going from 499 last year to 502 this year.
The sales to listing ratio was 34.0% in Swift Current and 28.6% in the region suggesting a buyers’ market in the area.
Homes in Swift Current stayed on the market an average of 128 days in March, an increase of 30.6% from 98 days last year (and still above the 5-year average of 93 days). Homes in the region also stayed on the market an average of 128 days, a 8.6% decrease from the 140 days spent on market last year.
Average home prices in Swift Current went from $232,682 to $302,240 (an increase of 29.9%) and were approximately 9.8% above the 5-year average price. Average home prices in the region also increased a significant 22.6%, going from $154,063 to $188,836—7.8% below the five-year average price.
Yorkton
Sales in Yorkton were up a significant 77.8%, going from 9 in March 2019 to 16 in March 2020, and up 53.5% in the overall region, going from 43 to 66. In Yorkton, the total number of sales was 2.6% above the 5-year average, while in the region overall, sales were 8.6% above their 5-year average. Year-to-Date (YTD) sales in Yorkton rose 43.5% over last year, going from 23 to 33, while YTD sales in the larger region jumped 12.3%, rising to 128 from 114.
Sales volume was down 2.4% in the city at $2.7M and off 22.2% from the $3.4M 5-year average. YTD sales volume in the city was up 5.0%, rising from $6.0M to $6.3M. In the region, sales volume was up a significant 27.2%, going from $6.5M to $8.3M (but still 11.1% below the 5-year average of $9.3M). YTD sales volume also increased 4.6% in the region, rising from $16.3M in 2019 to $17.1M in 2020.
The number of new listings in the city fell 14.0%, going from 50 to 43, while the region saw new listings rise 9.7%, going from 165 in 2019 to 181 in 2020. Active listings in Yorkton fell 7.1% to 170—up from the 166 5-year average, while active listings in the region increased 1.5%, going from 949 to 963.
The sales to listing ratio was 37.2% in Yorkton and 36.5% in the region suggesting a buyers’ market in the area.
Homes in Yorkton stayed on the market an average of 109 days in March—up 1.9% from 107 days last year (and still above the 5-year average of 88 days). Homes in the region stayed on the market for 116 days on average in March, down from an average of 124 days last year.
Average home prices in Yorkton fell a significant 45.1%, going from $304,398 to $167,069 which is approximately 26.0% below the 5- and 10-year average price. Average home prices in the region also fell a more modest 17.1%, going from $151,200 to $125,333—more than 16.0% below the 5- and 10-year average price.
South East Saskatchewan
Sales in south east Saskatchewan were up 50.0%, going from 20 in March 2019 to 30 in March 2020, up 7.1% from the 5-year average. Although the total number of sales fell 25.0% in Weyburn (down from 8 last year to 6 this year), this was offset by a 400.0% increase in Estevan, with sales going from 1 to 5. Year-to-Date (YTD) sales in the overall region were up 44.1%, going from 59 to 85, with YTD sales in Weyburn falling from 21 to 20, but rising from 10 to 23 in Estevan.
Sales volume in the region increased 33.5%, going from $3.7M to $5.0M in 2020 (but 15.1% below the 5-year average of $5.8M). Sales volume in Weyburn fell 50.7% ($2.3M in 2019 to $1.1M in 2020) while it increased 485.7% in Estevan ($0.1M to $0.9M). YTD sales volume increased from $11.9M to $15.0M in 2020 (an increase of 26.3%), with Weyburn seeing a fall of 14.0% and Estevan seeing a 70.6% rise in sales volume.
The number of new listings in south east Saskatchewan fell 20.3%, going from 133 to 106 (8.5% below the 5-year average, but consistent with the 10-year average). The number of new listings in Weyburn were down from 37 last year to 22 this year, while in Estevan, new listings increased modestly, from 31 to 34. Active listings were down across the region—6.1% in the region as a whole (821 in 2019 to 771 in 2020), 14.3% in Weyburn (189 to 162), and 21.5% in Estevan (200 to 157).
The sales to listing ratio was 28.3% in the region, 27.3% in Weyburn, and 14.7% in Estevan, suggesting that market conditions favour buyers at the moment.
In March, homes stayed on the market an average of 132 days in the region, down 15.9% from 2019, but 5.8% above the five-year average of 125 days. In Weyburn, homes stayed on the market an average 89 days (a significant drop of 46.1% from last year’s 165 days) while in Estevan, homes stayed on the market an average of 121 days.
Average home prices in the region fell 11.0%, going from $185,445 to $164,080, or 19.5% lower than the 5-year average. In Weyburn, average home prices were down 34.3%, going from $282,625 to $185,750, while in Estevan, prices increased 17.0%, up to $172,000 from $147,000.
Both of the main candidates in British Columbia‘s election campaign pushed their own plans to solve parts of the housing crisis.
B.C. Conservative Leader John Rustad told a news conference in Surrey that his government would end the multi-year permit delays and would get homes built at the speed and scale needed to address the housing crisis.
NDP Leader David Eby went to Cumberland on Vancouver Island to promote his party’s plan to fast-track factory-built homes.
Eby said pre-built homes would cut waste, reduce emissions, and advances in the industry mean the homes are “beautiful and high-quality.”
He said the process was “more like Lego” than normal construction.
“The idea is pretty straightforward. In a controlled factory environment, you can build faster, you can build with less waste and the homes that are built are more consistent and more efficient and it’s cheaper.”
Rustad said the Conservative Party of B.C. would redesign the approval process for home building, setting a six-month limit for rezoning and development permit and three months for a building permit.
“This means that we will significantly be able to improve the time frame it takes to actually get construction happening in this province, and we’ll be working with city halls across the province to be able to meet these timelines,” Rustad said.
If a clear yes or no isn’t issued by a city within that limit, the province would issue the permit, said a B.C. Conservative news release announcing the platform.
Rustad said the party would remove NDP taxes on housing, support transit-oriented communities, reform development cost charges and make taxes fair for homeowners.
“We have so much regulation that has been put in place associated with housing that it makes it really difficult for anybody to be able to actually get through and build things, not to mention the cost,” he said. “So we’ll amend the Local Government Act to prevent any home killing red tape that has been introduced by this government.”
The party’s statement also outlined their zoning plan, adding that it would work with BC Assessment “to make sure that current homeowners don’t get hit with higher tax bills based on future potential.”
The party statement said, if elected, a Conservative government would build new towns, saying B.C. is blessed with an abundance of land, but the NDP refuses to use it to end the housing shortage.
“We will identify land outside the Agricultural Land Reserve that has the potential to support beautiful new communities.”
A statement issued by the NDP on Friday said it would work with industry, municipalities and First Nations to create a provincewide framework for prefabricated homes so builders know what’s required in every community.
It said there would be a pre-approved set of designs to reduce the permitting process, and it would work to develop skills training needed to support prefabricated home construction.
The statement said Scandinavian countries had embraced factory-built homes, which “offer an alternative to the much slower, more costly process of building on-site.”
“By growing B.C.’s own factory-built home construction industry, everyone from multi-generational families to municipalities will be able to quickly build single homes, duplexes and triplexes on land they already own,” Eby said.
The party said legislation passed by the NDP government last year was a “game changer” for the factory-built home construction industry in the province, where there are currently 10 certified manufacturing plants.
Muchalat Construction Ltd. is one of them, and owner Tania Formosa said pre-approved structures speed up the building process considerably.
She said her company’s projects currently take 12 to 13 months to complete, from startup design to getting the house on site.
“If everything was in place and fast-tracked at the beginning and we were able to just fly along, it would probably take three months off the full schedule,” she said.
She said a main issue for modular manufacturers is that work gets stalled if they run into roadblocks with jurisdictions or BC Housing in the approval process.
“There’s no option for the manufacturer to start another project,” she said. “Having our products approved prior to the process would be amazing.”
She acknowledged the potential drawback of pre-approved designs creating a cookie-cutter look for some neighbourhoods.
“Unfortunately (what) happens in your jurisdiction, in your city, is it ends up looking a lot the same, but what are your priorities?”
This report by The Canadian Press was first published Sept. 27, 2024.
The Canada Mortgage and Housing Corp. says construction of new homes in Canada’s six largest cities rose four per cent year-over-year during the first half of 2024, but housing starts were still not enough to meet growing demand.
The agency says growth in housing starts was driven by significant gains in Calgary, Edmonton and Montreal.
A total of 68,639 units began construction, the second strongest figure since 1990, however the rate of housing starts per capita meant activity was around the historical average and not enough “to reduce the existing supply gap and improve affordability for Canadians.”
The report says new home construction trends varied significantly across the markets studied, as Toronto, Vancouver and Ottawa saw declines ranging from 10 to 20 per cent from the same period last year.
Apartment starts in the six regions increased slightly, driven by construction of new units for rent, as nearly half of the apartments started in the first half of 2024 were purpose-built rentals.
But condominium apartment starts fell in the first six months of the year in most cities, a trend which the agency predicts will continue amid soft demand as developers struggle to reach minimum pre-construction sales required.
This report by The Canadian Press was first published Sept. 26, 2024.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
