Not quite 20 years ago, a house in Saskatoon's southeast neighbourhood sold for about $375,000. Today, a similar home in the same area is listed for $650,000 and sells for $850,000 with multiple offers. This stark comparison highlights the current tight housing market in Saskatoon, where low supply and high demand are driving prices upward and eroding affordability.
Multiple Offers Become the Norm
Real estate agent Gail Bastien of LPT Realty, with 22 years of experience, notes that since mid-April, every listing she has held for offer presentation has received offers. One west-side house listed for $330,000 attracted 13 offers and sold for $367,500 cash with no conditions. Another southeast property listed for $450,000 drew ten offers and sold for $515,000. Bastien says she has become accustomed to this frenzied market but prefers the offer presentation process to prevent buyers from making irrational offers out of fear.
Market Tightness Comparable to 2007
Bastien moved to Saskatoon just in time for the 2007 market madness, when writing 20 offers to secure a transaction was common. Another peak occurred in 2014 before leveling off. During the pandemic in 2020, the market took a brief pause before surging again. Bastien observes that the market has not taken a total break since then. Currently, active listings stand at about 500 to 550, far below the typical 1,800 to 2,100 for spring. Although Saskatoon has many more houses than 20 years ago, the percentage of available homes is even tighter.
Affordability Concerns Rise
The Saskatchewan Realtors Association's April sales report issued a warning: back-to-back months of record price increases continue to erode Saskatchewan's affordability advantage. With supply at rock-bottom and prices climbing, the market shows no signs of cooling soon.
