Building off the momentum seen in 2020, the Saskatchewan real estate market started 2021 off strong. Across the province, sales were up over 49% from last January (going from 616 to 919), new listings were down just over 5% (going from 1,855 to 1,758). Inventories were also down in 18 of the 19 markets that the SRA tracks.“We haven’t seen a January like this since 2012,” said SRA Economic Analyst Chris Gbekorbu. With new listings down 10% from their historical averages, there are fewer houses being put on the market. At the same time, the rising number of sales combined with falling inventory suggests strong demand for what housing is available. This could put upward pressure on prices and help to encourage potential sellers. “Although it is only one month and another COVID-like event could slow things down again like it did last March and April, this strong start should help us be optimistic for 2021,” said Gbekorbu.While some analysts have suggested that national housing numbers could suffer significantly this year, most analysts project that home prices will rise and that the economy will see strong growth as we continue to recover from the effects of COVID. Most consumers are also optimistic about real estate, expecting the market to continue to grow and be a good investment opportunity.Sales in Saskatoon were up 26.9%, going from 219 in January 2020 to 278 in January 2021, and up 25.5% in the overall region, going from 290 to 364. In Saskatoon, sales were 28.2% above the 5-year average (and 30.1% above the 10-year average), while in the larger region, sales were 24.1% above the 5-year average (and 26.9% above the 10-year average).Sales volume was up 35.6% in the city, going from $71.5M to $96.9M in 2021 (33.7% above the 5-year average, and 33.7% above the 10-year average). In the region, sales volume was up 33.8%, going from $90.2M to $120.7M (29.0% above the 5-year average and 30.6% above the 10-year average).In Saskatoon, the number of new listings in January 2021 fell 2.5%, going from 571 to 557 (7.9% below the 5-year average and 10.6% below the 10-year average), while in the region, new listings fell 4.2% from 811 last year to 777 this year (9.3% below the 5-year average and 11.4% below the 10-year average). Active listings fell 24.5% in Saskatoon (down from 1,373 to 1,037) and fell 28.0% in the region (down from 2,584 to 1,860).Inventory in Saskatoon stood at 3.7 months (which is 40.5% below the level last year and 45.0% below the 5-year average), while the sales to listing ratio was 49.9%, suggesting balanced market conditions. Inventory in the larger region stood at 5.1 months (which is 42.7% below the level last year and 42.1% below the 5-year average), while the sales to listing ratio was 46.8%, suggesting balanced market conditions.Homes in Saskatoon stayed on the market an average of 55 days in January—down 14.1% from 64 days last year (but below the 5-year average of 60 days and above the 10-year average of 55 days). Homes in the region stayed on the market longer than homes in the city at 63 days on average in 2021, but also down from an average of 73 days last year (and 11.3% below the 5-year average).In Saskatoon, the MLS® Home Price Index (HPI)—which provides a more accurate measure of house price trends—was up 4.7% year-over-year, going from $305,800 to $320,300.
