Moose Jaw had a resilient housing market in 2022. Sales were strong but a lack of inventory remains a concern.
Moose Jaw’s housing sales were up 35 per cent over the 10-year average and the city had its second-highest year in terms of sales. In 2020, Moose Jaw saw a record number of home sales. Those numbers dipped in 2021 and went back up again in 2022.
“It is still a very busy market. The total residential benchmark price is sitting at just over $228,000,” said Saskatchewan Realtors Association CEO Chris Guerette.
Moose Jaw continues to be an affordable city to buy a home. The provincial benchmark price is just over $316,000.
However, the shortage of supply didn’t escape the Moose Jaw market. The supply of homes for sale was about 60 per cent of the 10-year average, a trend the realtors association has been seeing across the province.
Looking ahead to 2023, Guerette said many forecasts predict that the housing market will see a dip in prices in the first and second quarters. She believes that Saskatchewan likely will not see a drastic dip in prices.
"We have some strong fundamentals here. We have an economy that is quite strong that's going to be leading the country. We just came off some record numbers of welcoming new people to our province. That's going to keep going in 2023,” she explained.
Guerette said Saskatchewan will continue to have some of the most affordable housing in the country. Lack of inventory will still be a concern moving forward, but she said homebuyers may need some patience when finding a home that fits their needs.
"We have to make sure inventory levels are at a place where individuals who are moving to this province have a nice amount of choice,” she said.
With rising interest rates, Guerette said it will have an impact on housing sales as the average person’s buying power will be impacted. For example, she said what someone could afford two years ago is very different compared to what they can pay for today and expectations need to be recalibrated.
Guerette said any downfall in sales will be two-fold: high interest rates and the lack of inventory. She feels both are playing a factor right now, yet it’s hard to quantify how much each is affecting the market.