Record Sask. home sales could lead to 'drastic impact' on prices, realtors association says

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The Saskatchewan Realtors Association is predicting a record number of house sales in 2021, after 1,361 sales in November — also a record number for the month.

SRA CEO Chris Guerette says speculation that inflation and interest rates will increase in 2022 is driving sales.

“You make those decisions taking a look at what the market’s bringing and we definitely know that in 2022 there's going to be some increases in costs, in groceries, in how we live,” she said.

“It's going to cost more to live in 2022 than it does in our current year, so how does that impact your finances?”

Guerette says the housing market in the province is strong, but unlikely to stay that way because of a lack of inventory.

“We're down 13 per cent compared to last year, and we're well below the 10-year average,” she said. “There's less choice out there for those looking to purchase a home and when inventory gets too low, that puts pressure on prices, and then you have an affordability problem.”

According to the SRA, there were 1,521 new listings in November, causing the sales-to-new-listings ratio to rise to nearly 90 per cent, which is the tightest level ever recorded for the month.

“Our concern is making sure that living in Saskatchewan is still affordable, and not only affordable but that you have choice,” said Guerette.

“We can look at other provinces, the other large municipalities, who have not kept a watchful eye on their affordability, on their inventory, and that's had a drastic impact on prices.”

Guerette says research has proven people are willing to make the drive from smaller centres into larger centres if it means a more affordable home.

“What are the prices in Regina, what are the prices in Saskatoon if you drive out 15 minutes? Do you get more home for that because people absolutely do that,” she said.

“We would certainly want people to move to Saskatchewan and then stay in Saskatchewan because they found a home, and a business, and an employer that they really, really like and a home is a key piece to all of that.”