As we head into the summer months and the temperatures continue to rise – so have the housing prices in Moose Jaw.
Chris Guerette, Chief Executive Officer with the Saskatchewan Realtors Association (SRA) explained that according to June statistics the average residential benchmark price has increased in both Moose Jaw and the province.
“The total residential benchmark price in Moose Jaw increased 2.8 per cent year-over-year closing out the month of June 2022. That is very similar to what we saw across the province. Every single region across the province for the month of June saw an increase. The average for the province was a 4.6 per cent increase.”
June’s total residential benchmark price brought the average up to $245,800. Provincially with the 4.6 per cent increase, the average benchmark price in Saskatchewan is $333,400. The benchmark price is the price of a typical home in a given area.
Guerette notes that supply and demand are one the biggest reasons why prices have increased in Moose Jaw and across the province.
“At the end of the day if there’s still amply supply compared to how much is available on the market you’re going to see pressure on the markets. We’re anticipating that would balance out a bit more in the second half of this year with interest rates increasing and inflationary pressures onto the market, that definitely means that individuals buying power has been reduced significantly.”
Though housing prices inched up in June, Guerette says that trends showed a decline in sales in Moose Jaw, which wasn’t surprising to the SRA.
“We’re a province where summer is the most beautiful season, and so people are enjoying that and we’re also a farming province. We have to remember that during the pandemic the market wasn’t reacting to a typical year. We expect that to pick up in mid to late August. “
Home sales in Moose Jaw were 89 in the month of June, which is a 13.6 per cent decrease year-over-year and 8.8 per cent year-to-date. In Saskatchewan, 1,808 homes were sold, which is a 5.3 per cent decrease year-over-year, and a 9.8 per cent decline year-to-date.
New listings were on the downslope for June in Moose Jaw, which Guerette adds has caused the city’s inventory to decrease by 60 per cent for the 10-year average.
“It’s still down, we’re in a position where we’re still concerned about inventory levels.”
In May Moose Jaw saw a monthly home supply of 1.8, which was down 48 per cent year-over-year. A month later though that number rose up to 3.87 months of supply, it’s still down by 4.8 per cent from June of 2021. Guerette did want to mention that the low housing supply has created a seller's market in Moose Jaw, with there being more buyers than houses available.
Months of supply means how many months it would take for all the current homes for sale on the market to sell, given a monthly sales volume. Guerette notes that for a balanced housing market, six months of supply is average. As of June, Saskatchewan’s housing supply is 3.81 months, which is down 12.6 per cent year-over-year.
Guerette is forecasting added pressure to the market due to Saskatchewan being an affordable place to live, which has attracted more and more people from bigger centres.
“People who are already living here are going to be competing with other people who are looking to move here. People are willing to move further and consider more options now, if that means that they can become homeowners or that they can have a more affordable lifestyle.”
More details on the housing information provided in this story can be found HERE.