Saskatchewan Experiences Record Year for Home Sales in 2021 | The Canadian News

Many people expected that the COVID-19 pandemic would have slowed down the housing market in 2021.

However, that was not the case in Saskatchewan.

A report released Thursday by the Saskatchewan Realtors Association (SRA) shows how well the province’s housing market performed last year.

Saskatchewan posted a total of 17,387 sales in 2021, a new record that surpassed the previous mark set in 2007 by 17 percent.

The SRA said that while the pandemic has caused major disruptions and challenges for some sectors of the economy, housing has skyrocketed.

“When we look back, truly a home is now where we feel most secure,” said Chris Guérette, SRA CEO. “It really redefined who we are, what kind of home we need to really survive a pandemic.

“I think that was the core of all the changes we saw in the last two years.”

Guérette mentioned that sales in 2021 were 24 percent higher than 2020 levels, when 2020 was still considered a good year for the real estate market.

The association added that a decline in inventory and strong demand ensured that the market leaned toward sellers for much of 2021.

Improved affordability, lower mortgage rates, and more time at home are some of the factors behind sales growth.

Kelsey Smith, a real estate agent for REMAX Crown Real Estate in Regina, said affordability changed for people with the pandemic, limiting options to travel or go out and spend money. Instead, his focus was on improving his living situation, be it through a home purchase, renovations, or both.

Trend stories

• 

  Sunwing Plane Party Organizer Criticizes Airlines, Some Passengers Get COVID

• 

  $ 295 million California mega mansion with deep ‘discounts’ heads to auction

“People spent so much time at home that they had to make changes to their environment,” Smith suggested.

“They are working from home, their children are at home and sometimes people realize that they don’t like their homes. They want to make changes and that comes with buying and selling ”.

Smith believes the beginning of 2022 will be busy for the province’s real estate market, but noted that there will be lower levels of inventory on hand.

The SRA noted that Saskatchewan’s inventory levels in 2021 were 16 percent below long-term trends, which the organization says is “a significant change” from a few years ago when supply levels reached record levels.

“If you are selling, you will be successful. If you’re buying, you’re buying before prices rise and when fewer people are watching, ”Smith said. “If there are properties to look at, then they will be bought.”

There are other challenges the province’s market could face in 2022, according to the SRA.

Experts anticipate that inflationary pressures will persist and interest rates will rise.

Jason Childs, an associate professor of economics at the University of Regina, said it will depend on what the Bank of Canada does with interest rates and how fast they move to reduce inflation.

Childs noted that the price hike relies heavily on liquidity created by the Bank of Canada and the federal government during the pandemic, which ended up in asset markets.

The SRA report indicated that if stringent conditions continue, there could be a price increase this year, but at a slower pace than what happened in 2021.

“We’re seeing a fork in the housing market where it’s more affordable for some and absolutely unaffordable for others, and that will create a problem,” Childs explained.

He proposed that this trend cannot continue forever without significant population growth. Childs said there will likely be an increase in population once immigration returns to normal circumstances.