Home sales and listings in Regina fell in July, while the benchmark residential price rose for the sixth consecutive month.
There were 357 sales in the city for the month, down 2.2% year over year, according to monthly real estate data released by the Saskatchewan Realtors Association. Monthly sales are still well above the 10-year average.
Regina saw 525 new listings in July, down 4.4% year over year. However, the Association of Estate Agents said inventory levels would not be significantly affected by the month-long drop.
Inventories are down slightly from June and are down more than 13% from last year’s levels.
“When looking at market sales and inventory, months of supply remained above three months in July, still low compared to historical norms and last year’s levels, but an improvement over at levels seen earlier this year,” the report said.
The Association of Realtors said the relatively low supply is creating slight upward pressure on home prices, but at a slower pace than in the spring.
The benchmark price for a residential property in Regina has risen to $330,600. Benchmark prices in the city have risen every month since January. The price is up 3.8% year over year.
Sales also fell provincially, which the association of real estate agents said could help move the market towards more balanced conditions as the decline in sales outpaces the drop in new listings.
“As expected, lending rate gains are having chilling effects on the housing market, prompting consumers to seek out more affordable options. The challenge will be the availability of products in the lower price ranges of the market,” said Chris Guérette, CEO of the Saskatchewan Realtors Association, in the report.
“Supply levels are improving from the start of the year, however, the year-over-year decline in inventory has been driven by homes priced below $400,000.”
The province continues to experience the toughest conditions since 2009, with less than five months of inventory currently available, the realtors association said.
These tight conditions are contributing to higher prices in the province, while markets in some other markets in Canada are seeing lower prices.
“Going forward, further rate hikes are expected as inflation concerns persist in the market. This will continue to weigh on housing markets across the country,” Guérette said.
“However, markets like Saskatchewan should fare better than some of the larger centers in the country, as they have never seen the same level of price growth throughout the pandemic.”