New Housing Market Report for Q1 2021 >> Supply & demand challenges impact the market
Saskatoon & Regina, SK (May 26, 2021) >> The New Housing Market Report for the province of Saskatchewan has been released, reporting on the first quarter of 2021.
The trend this quarter is clearly about supply and demand. The short supply and increased demand of supplies – most notably lumber – but also in keeping a watchful eye on the market to ensure there is no shortage in our housing inventory. In response to fears about the real estate market overheating, regulators are making policy decisions to intervene and curtail demand.
“It will be critical that the industry be able to ensure that land supply – serviced lots – are available to meet the need of our growing region,” comments Stu Niebergall, President & CEO of the Regina & Region Home Builders’ Association. “It is important the Greater Regina Area does not find itself in an imbalance of supply and demand that is plaguing so many Cities in our nation.”
Immigration also continues to be critical to Saskatchewan’s population growth, which is a large factor in housing demand, especially for its urban centres. There are indications that immigration is starting to return to pre-pandemic levels – increasing consumer confidence with it.
“An increase in residential construction permits year to date compared to 2021 indicates strong consumer confidence in the economic outlook for the province,” comments Saskatoon & Region Home Builders’ Association CEO Jason Yochim. “Although material supply shortages and increased pricing are delaying or cancelling some projects, overall consumers are moving forward with plans to invest.”
Despite higher unemployment and a smaller labour force, the resale home market continues to be strong with year-to-date sales in 2021 up 72% while inventory levels have been steadily falling. This suggests a supply shortage which could help fuel demand in new construction, adding needed activity in the economy.
The next New Housing Market Report will cover the second quarter of 2021 (April to June) and will be released in July 2021. While current trends are showing a slight slowdown in numbers, it is expected that Saskatchewan will still be a top producer in the country in new housing activity.
For more information and comments, please contact:
|Stu Niebergall, President & CEO
Regina & Region Home Builders’ Association
|Jason Yochim, CEO
Saskatoon & Region Home Builders’ Association