The Regina real estate market witnessed a decline in various key metrics during the month of June compared to the same period in 2022. Sales, new listings, total inventory, months of supply, and pricing all experienced decreases. It's important to note that the current market conditions are influenced by the post-COVID era and the transition from the busy spring season. Additionally, interest rates have risen by an additional 0.25%, reaching the highest levels seen since early 2000’s. However, it's crucial not to be discouraged by these developments. Despite the increase in interest rates, the persistently low inventory levels suggest that the market may stabilize in the near future. In fact, this scarcity of properties might even contribute to potential price increases, as the uncertainty in the market discourages sellers from listing their properties, exacerbating the existing supply and demand imbalance.
STATISTICS FOR JUNE:
Total Sales: 367
New Listings: 540
Total Inventory: 1042
Months of Supply: 2.84
DOM (Days on Market): 42
Benchmark Price: $318,700
Percentage of new listings to sales: 98%
Ask to Sale Price Ratio: 68%
SEE HERE FOR A FEW COMMENTS MADE BY CEO CHRIS GUÉRETTE OF THE SASKATCHEWAN REALTORS ASSOCIATION:
There were 1,691 sales reported across the province in June, a year-over-year decline of six per cent. While year-over-year sales were down, Saskatchewan again reported sales levels well above long-term, 10-year historical averages.
As seen in prior months, inventory levels remain a significant challenge in certain regions of the province. Despite a slight increase from last month, inventory levels were nine per cent below levels seen in the previous year and over 30 per cent below the 10-year average. Inventory challenges continue to impact the more affordable segment of the market, with homes priced below $300,000 reporting a 17 per cent decline in inventory in June.
“While higher lending rates are impacting sales activity, continued employment growth and Saskatchewan’s relative affordability advantage are preventing a significant pullback in sales,” said Association CEO, Chris Guérette. “Our province continues to report strong sales despite persistent inventory challenges, specifically in the more affordable segment of our housing continuum.”
The slight monthly inventory increase did support a modest gain in the months of supply. However, with just under four months of supply, conditions remain lower than levels traditionally seen in June. Tighter conditions again resulted in month-over-month price gains, as Saskatchewan’s benchmark price reached $331,500 in June, up from $329,600 in May.
“Our market continues to demonstrate resilience amid interest rate hikes, ongoing inflationary pressures, and concerns over a national recession,” said Guérette. “We continue to keep a close eye on inventory levels and how tighter market conditions may impact prices moving forward.”
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