(file photo/CKOM News Staff)

By Daniel Reech, CKOM News Staff

Sask. realtors say province has affordability problem with housing inventory

Feb 22, 2023 | 12:56 PM

The effects of inflation have been felt throughout the entire global economy.

That has had a significant impact on almost all economic activity, but Saskatchewan Realtors Association CEO Chris Guerette said it has likely had an effect on housing sales in the province as well.

“If you take a look, for example, at those individuals who would be the most impacted by inflationary pressures (and) interest rates rising, they’re also the ones that are looking at those homes that are at the beginning of the housing continuum,” Guerette told CKOM.

“And that’s where we have that really tight crunch on inventory. Anything really under $500,000 — even below that under $300,000 — that’s where we’re seeing the biggest crunch.”

She said the issue isn’t necessarily an inventory problem — it’s an affordability inventory problem for places like Regina and Saskatoon.

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Guerette said that even though housing sales are down, Regina’s benchmark price still increased compared to two years ago.

The benchmark price is based on a tool called the housing price index (HPI). It was created to be a more precise way to measure housing prices than average price.

“We’re currently sitting in Regina at $312,000. But when you actually compare that to January 2021, so two years ago, there’s still a big increase there,” she said.

“We were sitting at $291,000 as a benchmark price in Regina, so we’re still seeing a very healthy market there in both our large centres.”

She argues that even though the benchmark price dropped, the price compared to 2021 represents healthy growth within the market.

Saskatoon’s benchmark price as of 2023 is $366,000. Both Regina and Saskatoon have benchmark numbers significantly lower than the national average.

“Those are very good-looking numbers. And I would also argue that those are tied to amenities that are also really interesting,” Guerette said.

“Remember when you’re choosing a home you’re also choosing a neighbourhood, a community, (and) you’re choosing amenities within that community. I describe it as an onion — at the core, you have your home but then there’s all these layers that come with it. And I would argue that in Saskatchewan, we have some pretty cool amenities tied to those that you may not always find elsewhere in the country.”

She mentioned Saskatchewan’s schools, neighbourhoods and municipalities as fabulous amenities, especially when considering the price.

“If we want to be ready for growth as a province and welcoming people, we’re going to have to start looking at our inventory with a bit of a sharper eye,” Guerette said.