Q2 2020 New Housing Market Analysis >> Sharp Eye on the Horizon
Saskatoon, SK (July 31, 2020) – The Saskatoon & Region Home Builders’ Association has released the New Housing Market Analysis for the second quarter of 2020, providing a better picture of the impact of the pandemic on the new housing market. The report includes key figures and trends of building permit and housing inventory data, along with key economic indicators for Saskatoon and region.
The new housing market faired the pandemic shutdown better than expected. Sales declined in line with expectations, but there remains a sense of optimism on the horizon with single family homes posting a 6% increase in sales compared to the same period last year.
In 2019, there were approximately 128,000 housing units in the region, while population growth was estimated at 2.2%. This implies that, excluding replacement units, the region required 2,800 additional dwellings to keep up with the pace of growth. “The region has the potential to experience new housing shortages in the short to medium term as there has been an insufficient supply of new housing stock to keep up with the household growth,” explains Chris Guérette, CEO of the Association. “Combined with the continued presence of uncertainty on the horizon, this is an important notice to all levels of government and service providers to the industry to keep a very sharp eye on what’s coming. Avoiding additional red tape, even reducing it, and focusing on quick turnaround times to allow certified builders to meet demand will be crucial over the next few months.”
The stock of unabsorbed inventory continues to decline now sitting at 311 units. While multi-family housing permits are down compared to last year, single family housing permits are up again this quarter compared to the same period in 2019.
The Saskatoon & Region Home Builders’ Association is the professional association that represents residential construction in Saskatoon & region. The Association serves businesses involved in the housing sector and provides the only professional certifications for home builders and renovators. It is the expert voice invested in bringing insight to public policy makers on matters that affect affordability, quality and choice of housing in our province, and works collaboratively with stakeholders and governments to get us there. For more information, visit our website at www.saskatoonhomebuilders.com.
For more information and comments, please contact:
Chris M. Guérette, CEO
Saskatoon & Region Home Builders’ Association