The real estate market is highly dissected in every aspect of how it operates and what happens within it. We receive monthly, quarterly and annual predictions from so many different sources. I’m here to provide some insight into the Regina Real Estate market going into 2023 from a “boots on the ground” perspective. According to Remax Canada, Regina Saskatchewan is predicted to remain balanced throughout the year, with the average price of a home remaining in the $320,000 price range.
Now, Remax Canada is saying that 55% of regions in Canada, mostly Western Canada and Ontario, are likely to shift to a balanced or buyers market, due to economic conditions. We have to take into consideration that when the two biggest real estate markets in Canada (Vancouver & Ontario) decrease in price, it reduces the national average. There are hundreds of micro markets in between that won’t see a significant price decline.
That being said, 43% of Canadians are feeling like the rising interest rates will affect their affordability, and in many marketplaces we have already seen the decline in the number of units sold, including Saskatchewan. Consumers shouldn’t “feel” like rising interest rates affect their affordability, they should know that it does. The seven increases the Bank of Canada released just this year alone could affect someone's buying power by $100,000+. A lack of confidence in what the rates are doing causes consumers to pause, not stop, but pause and wait to see what happens. However, we can’t deny that the rising interest rates will knock some people out of the market altogether.
It is important to remember that Regina real estate has incredibly low inventory. So even with many buyers sitting on the fence, those that are out there don't have many options, creating a competitive, and then balanced market. 2021 to 2022 total unit sales are very similar, with 2022 still being an above average year for the number of sales, but it will be interesting to see what 2023 brings. I think that when we say “balanced” it implies fairness on both sides. So, I imagine there will be some multiple offer situations AND some very intriguing deals.
I hope that 2023 is a successful real estate year for all real estate professionals and I hope that buyers and sellers come out with big wins! If you have any questions or would like to discuss the market more, give me a call at 306-552-7047 or fill out my online contact form.
Kelsey Smith Is Regina’s Choice
Choosing the right Realtor® is key to ensure a positive and successful real estate transaction. Kelsey Smith promises to deliver the education and time necessary to buy or sell your Regina home. Call 1-306-552-7047 and rest easy knowing you have made the right choice.