SASKATOON — As some major cities across the country see house prices drop, a very different narrative is playing out across Saskatchewan.
Home prices in Saskatchewan have hit all-time highs as inventory remains low, making it a tough market for buyers.
First-time homebuyer Patrick Arno said he couldn’t be “too picky” when shopping around for a home in Saskatoon, where the housing market has persistently low supply.
“There really wasn’t a whole bunch of options,” he said.
Arno and his wife had a list of must-haves that they were looking for in a single-family home. They wanted an open concept home with space for their dog, a garage and potential for a basement suite.
“We kind of knew what we wanted and it was like finding a needle in a haystack,” Arno told CTV News.
Busy market coming
Alyson Anderson, a real estate agent with Century 21 Fusion in Saskatoon, says the current market is “very strong” for sellers.
“With very little inventory, it’s definitely a little bit harder for buyers to get into the market,” she said.
Saskatchewan’s inventory levels are 50 per cent lower than normal levels for this time of year, according to the Saskatchewan Realtors Association’s (SRA) latest report.
Saskatoon has less than a two-month supply of houses, which means if new houses don’t hit the market, there wouldn’t be any houses available to purchase after that time frame.
“It’s tight market right before we enter into a very busy season and that’s concerning,” said SRA CEO Chris Guérette. “We should expect an upward pressure on prices.”
Low inventory and high demand continue to challenge housing affordability in Saskatchewan.
Last month, Saskatchewan home prices reached record highs.
The provincial benchmark price of a home increased to $374,100 from $363,800, according to the SRA report.
Benchmark prices are even higher in the province’s two major cities. Saskatoon recorded an all-time high of $435,200. Regina’s benchmark price reached $343,700.
Prices are still well below the national benchmark of $663,828.
Saskatchewan’s housing market is unique compared to much of the country, Guérette said.
Many provinces, including BC, Alberta and Ontario are seeing prices and demand go down, while inventory numbers go up.
“We very much have to be focused on bringing more homes to market very fast,” she said.
Strategic offers
Properties with attractive prices are selling quickly, according to Anderson. Some go within a matter of hours.
Market pressure is also pushing some buyers to offer well above the asking price.
In the last month, Anderson has seen the average overbid hover around $34,000 to $36,000. She’s seen some offers go as high as $120,000 over the asking price.
“That’s not to make buyers scared of entering the market,” she said. “It’s not always the case that you’re going to have to bid over.”
There are several strategies a buyer can use to make their offer more attractive, according to Anderson, that don’t include paying more.
Homebuyers can submit a pre-approval letter from their financial institution, comply with the seller’s possession date, increase their deposit, or even write a letter to the seller explaining why they want to purchase the house.
“At the end of the day, it doesn’t always come down to just price,” she said.
Arno counts himself lucky. He was only in the market for about two months and paid about $10,000 below the asking price on his new home.
“We’re definitely very excited to move into this next chapter,” Arno said. “We spent a lot of time, my wife and I, talking about it, imagining ourselves in that home and imagining a life together in that home.”
