Sask. housing inventory drops to 18-year low with 'no signs of improving'

Saskatoon gets federal funds to fast-track housing WATCH: Ottawa made a cash commitment today to provide more housing faster for most in-need residents.

The squeeze on housing in Saskatchewan is getting tighter, and there doesn’t seem to be an end in sight.

Housing sales in Saskatoon jumped 22 per cent year-over-year in February, according to the latest numbers from the Saskatchewan Realtors’ Association (SRA).

That helped push inventory down 26 percent over the same period, and the supply remains 50 per cent below long term trends.

But it’s not just Saskatoon that’s seeing a housing crunch.

The SRA says inventory levels across the province have dropped to an 18 year low.

“Despite inventory levels being at their lowest point reported in February since 2006, strong detached sales are again leading another month of above-average sales in our province,” said SRA CEO Chris Guérette in a news release.

“Buyers are acting swiftly when new supply comes onto the market, preventing any inventory growth — even more so in our larger centres. This strong demand is driving price gains in many markets across the province.”

Regina is also seeing housing supply fall, as inventory dropped 25 per cent year-over-year in February.

Meanwhile, prices continue to rise across the province.

In Saskatoon, the benchmark price for a home has gone up six per cent in the last year to $388,300. That’s just ahead of the provincial average of five per cent.

“Though it is a small sample size right now, a month-over-month jump of over $10,000 in the provincial benchmark price is significant, with some markets reporting monthly increases in excess of $15,000,” said Guérette.

“We’re quickly approaching a busy spring market, and the inventory situation in many markets across our province is showing no signs of improving. We’ll continue to monitor closely how these supply challenges are impacting prices.”