April 2020 Real Estate Market Update
Regina Real Estate Market Update
Sales in Regina were down 50.2%, going from 289 in April 2019 to 144 in April 2020, and down 51.0% in the overall region, going from 349 to 171. In Regina, sales were 38.2% below the 5-year average (and 45.9% below the 10-year average), while in the larger region, sales were 37.7% below the 5-year average (and 45.4% below the 10-year average). Year-to-Date (YTD) sales in Regina fell 23.6% over last year, decreasing from 814 to 622, while YTD sales in the larger region also fell 21.2%, going from 946 to 745.
Sales volume was down 49.6% in the city, going from $87.1M to $43.9M in 2020 (39.8% below the 5-year average, and 47.7% below the 10-year average). YTD sales volume in the city was $184.8M, a decrease of 24.0% from last year. In the region, sales volume was down 50.6%, going from $103.8M to $51.3M (40.1% above the 5-year average and 48.0% below the 10-year average). YTD sales volume also decreased by 19.8% in the region, falling from $280.1M in 2019 to $224.6M in 2020.
The number of new listings in April 2020 fell significantly from the number last year. In Regina, new listings fell 50.8%, going from 581 to 286 (42.6% below the 5-year average and 44.1% below the 10-year average), while in the region the situation was similar, with new listings falling 52.4% from 792 last year to 377 this year. Active listings also fell 17.0% in Regina (down from 1,457 to 1,209) and 17.1% in the region (down from 2,046 to 1,697).
The sales to listing ratio was 50.3% in Regina and 45.4% in the region suggesting somewhat balanced market conditions in the area.
Homes in Regina stayed on the market an average of 62 days in April—up a modest 1.6% from 61 days last year (but still above the 5-year average of 52 days and the 10-year average of 41). Homes in the region stayed on the market somewhat longer than homes in the city at 70 days on average in 2020, but also down from an average of 66 days last year.
Median home prices in Regina went from $283,000 to $287,925 (an increase of 1.7%) and were approximately 1.8% below the 5-year and 2.9% below the 10-year average median price. The MLS® Home Price Index (HPI)—a more accurate measure of house price trends—was down 0.2% from $271,300 to $271,100. Median home prices in the region also increased by 0.7%, going from $283,000 to $285,000 which is 2.1% below the 5-year and 3.4% below the 10-year average median price.
SASKATCHEWAN REAL ESTATE MARKETS FARE BETTER THAN EXPECTED: poised to help boost provincial economy
COVID-19 has had a significant economic impact across all sectors of the economy. Despite those challenges, the Saskatchewan real estate market has been relatively resilient to date.
While Q1 new listings and average prices were down 4.4% and 0.2% respectively over last year, Q1 sales were up 7.0%. The true impact of the pandemic, however, was not going to begin to be felt until April, and although activity was down, it was not down as much as anticipated.
Across the province, new listings were down 48.1% from April of last year while sales were down 45.1%. This contrasts significantly from the SARS pandemic which saw transactions in some markets fall up to 72% and cease completely during COVID-19 in certain markets. Average home prices in April fell 3.2% year-over-year which is consistent with the modest price decline experienced in other markets affected by pandemics.
Evidence from prior pandemics suggests that transaction volumes return to normal quite quickly once physical distancing measures are relaxed. The province is just beginning to re-open the economy and we anticipate that “the real estate industry in Saskatchewan will likely emerge from this shutdown with only a few cuts and scrapes,” said Saskatchewan REALTORS® Association CEO Jason Yochim.
Home sales produce approximately $54,000 in additional spinoff spending across multiple sectors of the economy. Reduced restrictions on the home buying process have the potential to boost employment and help the provincial economy to recover and offset some losses in other areas of the economy.
“The number of employment opportunities and essential economic activities that are created when a home is bought or sold is significant,” said Yochim. “Sales that don’t occur during this pandemic will be recovered once the province has opened up again.”
Saskatchewan REALTORS® have taken every action possible to protect public safety concerning COVID-19 and recognized early on that business could not carry on as usual. The industry has worked hard to develop and provide a significant amount of virtual resources for REALTORS® as well as buyers and sellers which has proved to be invaluable while practicing social distancing.
From: SRA (Saskatchewan REALTORS® Association)