February 2022 Regina Real Estate Market Update
Regina Real Estate Market Update February 2022
SUPPLY CHALLENGES PERSIST INTO FEBRUARY
New listings in January remained well below traditional levels seen in the market in January. While levels are better than what was recorded in December, it did little to change the inventory situation as inventories remain at the lowest January levels since 2012.
January sales in the province reached 748 units, a decline over last year’s elevated levels, but still higher than longer term averages. Lower inventory levels likely contributed to some of the slower sales activity this month.
“Inventories still remain relatively low, but if new listings continue to improve relative to the sales, this should eventually translate into improved supply and better market balance,” said SRA CEO, Chris Guérette.
The months of supply in January rose to just over seven months. While this is a gain compared to last January, overall conditions are still relatively tight for January. Persistently tight market conditions supported further price gains. In January, the unadjusted benchmark price rose to $285,700, nearly seven per cent higher than last January.
The SRA has been working to gain a better understanding of the factors affecting housing supply in Saskatchewan. Everything from labour and supply shortages to land costs, lending rate increases, the pandemic and remote work, along with increased immigration and economic growth. All are contributing to gaps in the housing continuum and the Association is seeking partnerships that foster collaboration in the industry to work and address those gaps.
“With changes expected in lending rates, the 2022 housing market is not expected to see the demand levels as 2021. However, it is still early in the year, and like I have said before, my biggest concern for 2022 is inventory,” said Guérette.
In Regina, sales in January eased over the strong levels recorded last year but remained above the 10-year average.
At the same time, new listings did ease slightly over last year’s levels, but with 318 new listings for the month, the sales to new listing ratio eased to 53 per cent, slightly lower than the 57 per cent recorded last year.
Inventory levels also remained relatively stable this month. However, slightly slower sales combined with stable inventory levels helped push up the months of supply to just over five months.
Despite the gain, the months of supply is still relatively tight, supporting further price growth in the market. Benchmark prices in January trended up over last month and reflect a year-over-year gain of over seven per cent.
From: SRA (Saskatchewan REALTORS® Association)